Southern Trust Securities Holding Corp (STSHC), a financial services company offering broker-dealer, investment banking, investment advisory and wealth management services through its wholly owned subsidiary Southern Trust Securities, has restructured its investment in AR Growth Finance Corp (ARGW).
Reportedly, STSHC has exchanged its $2.5 million preferred stock investment in ARGW for a 22% common stock interest in Nexo Emprendimientos. Nexo is a consumer credit card company based in Sunchales, Argentina. ProBenefit, a financial services holding corporation, STSHC and ARGW will be the major shareholders of Nexo. As part of the terms of the restructuring ProBenefit has given STSHC a put option on the shares of Nexo it will own. STSHC will be able to have ProBenefit pay back its $2.5 million investment in the stock of Nexo with interest of 8% starting over a two and a half year period beginning in September of 2012.
Robert Escobio, CEO of STSHC, said: “By restructuring our ARGW preferred stock investment we have been able to directly invest in a fast growing company and still preserve our investment. Nexo is a well-run consumer credit card company that has many opportunities to grow quickly. We are very excited to be a direct shareholder in this exciting business.”
