A-Mark to Acquire Leading E-commerce Retailer JM Bullion, Creating the Industry’s Preeminent Fully Integrated Precious Metals Platform - Seite 2

• Net sales of $1.49 billion, gross profit of $78.9 million, and pre-tax income of $62.2 million;
• 1.3 million total users (up approximately 30% year-over-year), of which more than 300,000 purchased products during the year (up approximately 70% year-over-year);
• Processed 794,000 orders (up approximately 80% year-over-year); and
• Sold more than 21 million ounces of silver (up approximately 120% year-over-year) and more than 500,000 ounces of gold (up approximately 170% year-over-year).

Strategic Rationale

• Channel Diversification: JMB significantly increases A-Mark’s Direct Sales segment, which will represent nearly 50% of the combined company’s pre-tax income on a pro forma basis.
• Broadens Consumer-Facing Brand Portfolio: JMB will provide A-Mark with the ability to tailor its merchandising and pricing strategies to multiple customer demographics across the combined business’s six unique consumer-facing brands.
• Expands A-Mark’s Logistics Footprint: JMB will add a centrally located distribution hub in Dallas, Texas, which will further improve A-Mark’s ability to service customers on the East Coast as well as expands its overall capacity.
• Attractive Customer Economics: JMB’s proven and proprietary online marketing strategies enable it to acquire customers at attractive rates and realize average order values at over 50x its customer acquisition cost (CAC).
• Highly Complementary Management Teams: The A-Mark and JMB senior leadership teams have significant precious metals market expertise and deep online and e-commerce experience. Both management teams have worked closely together since A-Mark’s initial minority investment in JMB in 2014.
  

Management Commentary
“E-commerce platforms like JMB have been taking substantial market share from the traditional brick-and-mortar and offline coin dealers and are becoming a significantly growing share of the global precious metals market,” said A-Mark CEO Greg Roberts. “With this acquisition, JMB immediately becomes the anchor in our direct-to-retail strategy, significantly bolstering A-Mark’s capabilities and dramatically broadening our consumer-facing footprint and brand portfolio. Given our familiarity with JMB, including our close working relationship with its leaders and integrated workstreams, we are confident that as a truly unified organization, we will be able to more effectively capitalize on the bourgeoning demand for precious metals through online and e-commerce channels.”