Envela Seeks Another Recommerce Acquisition

Rhea-AI Summary

Envela Corporation (NYSE American: ELA) has announced discussions to acquire the business assets of Bluebonnet Sterling, LLC, a company specializing in vintage and estate sterling-silver jewelry and silverware. No definitive agreement has been finalized yet. This potential acquisition aligns with Envela's strategy to create value for shareholders and enhance its brand by expanding product offerings in the recommerce sector. Envela's DGSE subsidiary aims to grow by integrating Bluebonnet Sterling's expertise in sustainable jewelry transactions.

Positive

• Potential acquisition of Bluebonnet Sterling could enhance Envela's product offerings.
• Strategic move aligns with Envela's goal to expand in the environmentally friendly recommerce sector.
• Integration may create synergies, enhancing shareholder value.

Negative

• No definitive agreement has been reached, posing uncertainty about the acquisition.

DALLAS, TX / ACCESSWIRE / August 11, 2020 / Envela Corporation (NYSE American:ELA) ("Envela" or the "Company") announced today that its wholly owned subsidiary DGSE, LLC has begun discussions to acquire the business assets of Bluebonnet Sterling, LLC.

No definitive agreement has been reached, and there can be no assurance that a definitive agreement will be reached.

Headquartered in Dallas, Texas, Bluebonnet Sterling focuses on recommerce in vintage and estate sterling-silver jewelry and silverware. It seeks all-time best-selling silverware patterns, including both discontinued and currently manufactured patterns.

Envela's ongoing business strategy includes seeking acquisitions with promising synergies, creating value for its shareholders and enhancing its brand by expanding product offerings. Acquiring Bluebonnet Sterling would advance this strategy and expand the Company's presence in the environmentally friendly recommerce sector.

About DGSE

DGSE focuses on sustainable, authenticated recommerce of luxury brands and diamonds. Its retail strategy is anchored in being an information resource for clients, bringing transparency to purchase and sale transactions, and offering value and liquidity to those seeking to buy, sell or trade jewelry, watches, diamonds or coins.

DGSE wholesales and retails jewelry, diamonds, fine watches, and precious metal bullion and rare coin products through its Charleston Gold & Diamond Exchange (www.cdgeinc.com) and Dallas Gold & Silver Exchange (www.dgse.com) operations.

DGSE strives to deliver an unrivaled customer experience. It features a broad selection of high-quality vintage and new jewelry, precious-metal bullion, rare coins, fine timepieces and diamonds, together with value pricing and a customer-friendly sales process.

DGSE has specialized in buying and selling jewelry for over 40 years, making its expert staff among the best in the business.

About Envela

Envela and its subsidiaries engage in diverse business activities within the recommerce sector. These include recommercializing luxury hard assets, consumer electronics and IT equipment; and end-of-life recycling solutions. Envela assesses its inventory of recommerce purchases for their potential to be refurbished and resold as whole goods or to be recycled for component parts or precious-metal value. Envela also offers comprehensive recycling solutions for a variety of other companies seeking responsibly to dispose of end-of-life products. Envela operates primarily via two business segments. Through DGSE, LLC the Company recommercializes luxury hard assets via Dallas Gold and Silver Exchange, Charleston Gold & Diamond Exchange, and Bullion Express brands. Through ECHG, LLC, the Company operates Echo Environmental Holdings, ITAD USA Holdings, and Teladvance, which recommercialize primarily consumer electronics and IT equipment and provide end-of-life recycling services for various companies across many industries. Envela operates at the retail and wholesale levels, through distributors, resellers, dedicated stores and online. Envela is a Nevada corporation, headquartered in Dallas, Texas.

Additional information about Envela is available at its investor-relations website, Envela.com.

Forward-Looking Statements

This press release includes statements that may constitute "forward-looking" statements, including statements regarding potential future asset acquisitions, future growth, business strategies, and the future success of the Company and its subsidiaries. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, market conditions and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release except as required by law.

Investor Relations Contact:
David Vadala
Head of Investor Relations
Envela Corporation
13022 Preston Rd Dallas, TX 75240
972.587.4030

SOURCE: Envela Corporation

View source version on accesswire.com:
https://www.accesswire.com/601082/Envela-Seeks-Another-Recommerce-Acquisition

FAQ

What is Envela Corporation's plan with Bluebonnet Sterling?

Envela Corporation is discussing acquiring Bluebonnet Sterling to expand its presence in the recommerce market.

What type of business does Bluebonnet Sterling operate?

Bluebonnet Sterling focuses on recommerce in vintage and estate sterling-silver jewelry and silverware.

What is the stock symbol for Envela Corporation?

The stock symbol for Envela Corporation is ELA.

When was the announcement regarding the acquisition made?

The announcement was made on August 11, 2020.

Is there a definitive agreement for the acquisition yet?

No, a definitive agreement has not yet been reached regarding the acquisition.