Titan to Hire New Industry Leader for Financial Services Division Projected to Generate $45 Million in Fiscal 2008
November 12, 2007
Titan Global Holdings, Inc. ("Titan") (OTCBB:TTGL), a high growth diversified holding company, today announced that the Company's Board of Directors approved the reorganization of Titan Card Services into a separate Division known as Titan Financial Services ("TFS").
Through its development and start up phase, TFS was part of Titan's Communications Division. Given the developmental progress of the roll out of Guarda™, the potential for its revenue and earnings growth, and promising organic and strategic opportunities that are complementary to Guarda™ products, Titan's Board of Directors concluded it was important to operate TFS as an independent unit renamed as Titan Financial Services. As a result, Titan will recruit a new leader for this division. In the interim, Brad Kropf will continue to lead TFS. Titan expects to announce a new hire within 45 days.
The Guarda prepaid money transfer card products are TFS' first branded products. Titan chose Guarda™ to emphasize the Spanish translation of "security and guard." Guarda™ appeals to Titan's core demographics of first and second generation Americans, one of the fastest-growing markets in the U.S.
Titan Card Services has been projected to generate revenues of $45 million in fiscal 2008 as management continues to execute on significant opportunities for revenue and earnings growth. Titan recently completed milestone strategic agreements with CardMarte and MetaBank, both established leaders in the stored value and remittance industries, to support the technological delivery and distribution of Titan's Guarda™ instant money card.
Titan entered this space to capitalize on the burgeoning $289 Billion international prepaid money transfer sector. The launch of Guarda™ further validates the Company's high-growth business model and provides a seamless brand extension for Titan's growing family of prepaid products, which are distributed and sold through a nationwide network of more than 86,000 retailers.
"The Guarda Instant Money Card offers value and convenience to consumers," said Bryan Chance, President and Chief Executive Officer of Titan Global Holdings. "Our product allows the consumer unlimited reloads and additional remittances to the value added functionality of being able to make purchases, ATM withdrawals, and even use the card as a re-loadable prepaid long distance calling product."
The Guarda money transfer product involves a complex electronic transfer of funds to a remittance partner with a worldwide paymaster network for disbursement of the funds. The product is re-loadable at any retail store which has Global Re-Cash POS activation and value load software application downloaded to any existing Verifone, Hypercom, or Lipman multi-application terminal, or by using the virtual terminal with internet access.
The Guarda prepaid card can be used to make repeated money transfers, ATM withdrawals, and in store or online purchases. Registered customers may use their cell phone to check their balances, transaction history or to send money using the Rocket Mobil Messaging SMS technology.
Given Titan's familiarity with the prepaid sector and the specific needs of its core demographic customer base, which includes first and second generation Americans, the Company's senior management identified a significant need in this growing market to transfer funds internationally.
While fast and convenient money transfer is very attractive to consumers, at the core of the Guarda products is an instant issue prepaid debit Master Card. Consumers will be provided incentives to move up the value chain from a one time use remittance to multiple remittances and, finally, onto a personalized prepaid debit card. Through the combination of proprietary card-based technology and the resources of industry partners while offering debit card capabilities, Guarda products are unique in the remittance space. To protect its proprietary technology, Titan recently retained a leading Washington D.C.-based intellectual property firm and also filed a patent application that is currently pending.
The competitive landscape in the money transfer industry is diverse. Western Union, a company with 305,000 agent locations and $1.2 billion in net income in fiscal 2006, is the largest accounting for 17.2% of all cross border transfers. Money Gram is currently the second largest with 125,000 agent locations and $156 million in net income in 2006. Other companies include online transfer operations, card-to-card, bank-to-bank and others. Each model provides complementary services but ultimately accomplishes the same goal: moving money across the border to loved family members and friends. The average remittance amount is between $300 and $400.
The rate at which Latin American migrants remit on a regular basis is relatively consistent at 60% to 70% of adults.
From a customer perspective, the Guarda product is a simple three step process. First the customer purchases the product. Second, the customer calls customer service to register and provide basic information. Third, the customer is provided with the ability to contact the receiving party via live transfer or using the INTL LD PIN provided with the product.
CardMarte is the card management system provider, program manager, and developer of private label, prepaid debiTFS in the stored value space and was the first company to sign with Metabank. Metabank is the world's largest issuing bank of prepaid debiTFS.
About Titan Global Holdings
Titan Global Holdings is a diversified holding company with a dynamic portfolio of subsidiaries spanning international telecommunications, electronics and homeland security, consumer products and energy resources. Through our nine wholly-owned subsidiaries, we take advantage of valuable synergies between our subsidiaries to maximize revenue growth, internal development and strategic acquisitions. In fiscal 2006 Titan generated in excess of $109 million in revenues on a consolidated basis and projects fiscal 2008 revenues up to $747 million. Titan's operating divisions include the following:
Titan's Telecommunications Division addresses a range of high-growth markets in the telecommunications, wireless and mobile segments. Companies include Oblio Telecom, Inc., the second largest publicly-owned company focused on the international prepaid telecommunications segment, StartTalk, Inc., Pinless, Inc., Titan Wireless Communications, Inc. and Ready Mobile.
The Titan Global Energy Division aggregates traditional and next-generation energy and fuel assets that can provide significant opportunities for growth in one of the world's largest and most critical markets.
Titan Global Brands integrates, protects and expands brand management capabilities to leverage and optimize growth across Titan's worldwide distribution channels. We own or manage more than 100 brands that are distributed through efficient, overlapping and expansive distribution channels.
Titan Card Services capitalizes on the burgeoning multibillion dollar international prepaid money transfer sector. The Card Services division provides a seamless brand extension for Titan's growing family of prepaid products, currently sold through a nationwide network of more than 71,000 retailers.
Titan's Electronics and Homeland Security Division includes Titan PCB East, Inc. and Titan PCB West, Inc. These companies specialize in the manufacture of advanced circuit boards and other electronic products for classified military and defense department customers, and other high-tech clients.
For more information, please visit: www.titanglobalholdings.com or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0.
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