Item 1.01 - Entry into a Material Definitive Agreement
On August 17, 2009, EZCORP, Inc. entered into a Subscription Agreement with Cash
Converters International Limited, an Australian company headquartered in Perth,
Western Australia. The core business of Cash Converters is the ownership and
franchising of retail and financial services stores, which operate as retailers
of second hand goods and suppliers of financial products. Cash Converters'
ordinary shares are listed on the Australian Stock Exchange under the symbol
"CCV" and on the London Stock Exchange under the symbol "CCVU".
Under the terms of the Subscription Agreement, EZCORP will acquire 108,218,000
ordinary shares of Cash Converters for AUS $0.50 per share, for an aggregate
purchase price of AUS $54,109,000 (approximately US $45 million, based on
current exchange rates). Following completion of the transaction, EZCORP will
own approximately 30% of Cash Converters' outstanding ordinary shares and will
be entitled to appoint two of the five members of Cash Converters' board of
directors. The right to appoint directors will continue as long as EZCORP owns
at least 20% of the outstanding ordinary shares of Cash Converters. A copy of
the Subscription Agreement is attached hereto as Exhibit 10.1.
EZCORP will have approximately 21 days to complete its due diligence review of
Cash Converters and its business. Thereafter, the transaction will be submitted
to the Cash Converters' shareholders for approval. Consummation of the
transaction is conditional on the successful completion of due diligence,
approval by the Cash Converters' shareholders and other customary closing
conditions.
On August 18, 2009, EZCORP issued a press release announcing the proposed
transaction, and a copy of that press release is attached as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
10.1 Subscription Agreement, dated as of August 17, 2009, between EZCORP, Inc.
and Cash Converters International Limited
99.1 Press Release dated August 18, 2009
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