Xalles Holdings to Acquire LYC Mortgage Other OTC:XALLJuly 14, 2019
WASHINGTON, DC and WESTWOOD, MA, July 12, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE – Xalles Holdings Inc. (OTC: XALL), a company focusing on accelerating fintech companies, leveraging blockchain technology for financial reconciliation, and payment auditing solutions, today announces the execution of the Share Purchase Agreement to acquire LYC Mortgage, LLC, a 15 year old, multi-state licensed mortgage lender.
Under the agreement, LYC Mortgage, LLC will become a subsidiary of Xalles Financial Services Inc., which is a wholly owned subsidiary under Xalles Holdings Inc. LYC Mortgage looks to expand its lending capabilities through the Xalles acquisition by adding scalable technology solutions to complement its existing innovative offerings.
LYC Mortgage, LLC and its DBA, BuyUSDA is a licensed retail Direct Lender for USDA, FHA and Conventional Mortgages in MA, CT, SC, TX and CA. LYC Mortgage plans to expand its business footprint into other states and increase revenue through the acquisition of other existing non-delegated mortgage companies.
As part of this acquisition, Xalles is acquiring a company in LYC Mortgage with an experienced management team, audited financial statements, the liquidity and net worth in excess of $1,000,000 necessary for delegated lender operations. LYC Mortgage has built the infrastructure to operate as a large company, and given its Direct Lender status on Conforming, FHA and USDA mortgage products, the company can underwrite, close and fund those loans independently. As a Direct Lender, LYC Mortgage earns larger profit margins on mortgage products than the brokers or correspondent lenders will be acquiring.
The Xalles team plans to utilize some of its fundraising for the expansion of LYC Mortgage’s footprint in terms of acquisitions and new technology. Xalles will also help to create new organic growth for LYC through its growing independent sales network.
“We are excited to be adding the professional LYC management team to the growing Xalles team,” stated Thomas Nash, Xalles Holdings CEO. He added, “Through Xalles Financial Services, we have a unique opportunity to bring innovative loan and mortgage solutions to consumers through the new LYC Mortgage subsidiary. Our other family of companies in the consumer commerce and payments areas will open up new business development and referral channels for LYC Mortgage.”
“We are pleased to be completing this transaction and see the obvious synergies between LYC’s plans and the various ways in which Xalles can assist our business,” said Richard Lee, Managing Member of LYC Mortgage. He added, “We look forward to enhancing our strong systems infrastructure through some of Xalles’ Blockchain applications and we know that the public company fundraising initiatives underway will enable LYC Mortgage to expand rapidly throughout the next year.”
As per the Share Purchase Agreement, Xalles and LYC Mortgage plan to close the…