ProLink Holdings Corp. Signs $10 Million Financing Agreement with Able Band Partner
Unique Agreement Accelerates Rollout of Pay-For-Play Partners Program
(Feb 28th 2006) (CHANDLER, Ariz.) -- ProLink Holdings Corp. (OTC BB: PLKH), the world's leading provider of Global Positioning Satellite ('GPS') golf course management systems, announced today that it has signed a letter of intent to provide customer lease financing to ProLink’s golf course partners totaling up to $10 million over the next 12 months with a private equity investment group named Able Band Partner. The proceeds of this financing agreement will be available to facilitate customer purchases of ProLink GPS systems and is expected to accelerate the roll-out of the Company’s patent-pending Pay-for-Play Partners program.
The Pay-for-Play program enables golf courses to lease the ProLink GPS systems without significant up-front expenditures, improving the sales cycle, charging golfers by the round to use the system and sharing revenues with ProLink. Under a Pay-for-Play arrangement, the system is offered to each golf group for a nominal fee. The historical acceptance rate for this service has been approximately 94 percent, indicating strong demand from golfers who have see the inherent value in the ProLink system and are willing to pay a small fee to use it. Revenue from the GPS system represents the third largest income stream for golf courses behind greens fees and cart fees.
ProLink also anticipates expanding its financing division, ProLink Capital, to provide financing assistance to golf courses for other capital expenditures, including golf course improvements, golf turf and maintenance equipment, golf carts and other purchases. Industry experts estimate that $3 billion is spent annually by golf courses on enhancements, expansion and other capital expenditures.
“ProLink Capital has the opportunity to service a unique and expanding niche in the golf industry, including the $350 million in capital expenditures currently being spent by its installed customer base annually,” commented Danny Lam, President of ProLink Capital. “This agreement provides significant financing capital to our customers and allows us to both accelerate and execute our strategic vision. In the near term, this allows us to fully implement our new patent-pending Partners Pay-for-Play model, which combines the fixed lease and revenue share model, giving our golf course partners more flexibility and allowing them to hedge against economic and weather-related rounds risks. In the longer term, as we grow our portfolio, we will offer unique and profitable financing options for our golf course partners for their non-GPS expenditures, including expansion, new and renovated clubhouses, and general improvements. The end result is a turn key solution for our golf course partners, which translates into loyal customers and additional revenue streams for ProLink.”
The private equity investment group, managed by Managing Partners David S. Band and Stanley B. Kane have funded and invested in various projects for the past 30 years.
“The private equity and debt investment group Able Band Partner is well established and respected and we are gratified to partner with them,” commented Lawrence Bain, President and CEO of ProLink Solutions. “This long-term agreement validates our business strategy for ProLink Capital Corporation and is a significant milestone for the Company. Our ability to offer a financing option for golf courses will expand our potential market opportunity and enable us to better utilize our fixed assets across a broader customer base. Additionally, ProLink will be the only Company in the industry offering this financing option, helping ProLink further expand its market share dominance.”
|
