2014

CVSL To Raise $500,000,000 For "War Chest" To Acquire Additional Social Commerce Companies

DALLAS, Dec. 11, 2013 /PRNewswire/ -- CVSL Inc. [stock symbol: CVSL] said today it is raising an additional $500,000,000 to increase its "war chest" for acquisition of micro-enterprise companies that conduct social commerce.

"CVSL has had tremendous success building a base from which to execute our strategy.  We're ahead of schedule.  We're in eight product categories, we have worldwide presence in 40 countries and we are on a run rate to exceed $150 million in annual revenues. We're very pleased at how much we've accomplished in less than a year," said John Rochon Jr., chairman of CVSL's investment committee. 

"Our potential deal funnel of companies who are candidates for acquisition by CVSL now adds up to approximately $8 billion in combined annual revenue.  While we obviously won't acquire every company in the deal funnel, there is clearly a vast pool from which to draw as we move ahead with our strategy," Mr. Rochon noted.

"We intend to continue pressing ahead with more acquisitions. We believe the best way to fund these next acquisitions is with capital derived from a debt raise, as opposed to using CVSL shares.  Based on our progress and the attractive opportunities we intend to seize, we believe that CVSL shares are significantly undervalued at the moment.  So it makes good sense for us not to use CVSL shares as our primary acquisition currency going forward," said Mr. Rochon. 

"Returns to shareholders will be better if we use a debt security to fund the next round of acquisitions, rather than using equity.  We don't want to dilute the current shareholders, so cash will now be our primary acquisition currency." 

"Adding $500 million to our war chest is the best way to fuel the next phase of acquisitions," said Mr. Rochon.  "This new capital will be drawn down into CVSL as required to fund acquisitions, and it is important to emphasize that it will not be fully drawn down until required for acquisitions that are accretive to CVSL."

CVSL has retained the services of London-based Wittenborg Capital LLP for this round of debt sourcing. 

"We are delighted to be working with CVSL to source debt for their ongoing acquisition strategy," said Thomas Wittenborg, Managing Partner of Wittenborg Capital.  "Year to date, CVSL has made extraordinary progress building a business that has demonstrated phenomenal revenue growth. The debt we will be sourcing will add to their firepower and facilitate the forthcoming acquisitions that are key to CVSL's expansion strategy."

With regard to Blyth, Inc., Mr. Rochon noted, "As we indicated that we would do in our November 15 press release regarding Blyth, Inc., we have amplified our proposal, on a confidential basis.  We continue to maintain a significant share position in Blyth.  As we've said many times, it is our intention that, in any acquisition, there will be no dilution of existing shareholders."  

About CVSL

CVSL is a growing group of micro-enterprise companies that connect social media networks into an ever-expanding virtual "community" of social commerce. CVSL companies currently include The Longaberger Company, a 40-year old maker of hand-crafted baskets and other home decor items; Your Inspiration At Home, an award-winning maker of hand-crafted spices and other gourmet food items from around the world; Tomboy Tools, a direct seller of tools designed for women as well as home security systems; and Agel Enterprises, a global seller of nutritional products in gel form as well as a skin care line sold under the Ageless™ brand, operating in 40 countries. CVSL also has signed a letter of intent with Golden Girls, which purchases gold and tradable jewelry, and Paperly, which offers a line of custom stationery and other personalized products.

About Wittenborg Capital LLP

Wittenborg Capital was established in 2010 to intermediate credit in the void left by the withdrawal of traditional lenders. Since inception Wittenborg Capital has worked with a number of high quality private equity and property groups to originate financing and re-financing solutions for clients' assets and acquisitions.     

Cautionary Note Regarding Forward-Looking Statements:

This press release contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical fact contained in this press release are forward-looking statements. We have attempted to identify forward-looking statements by terminology including "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," or "will" or the negative of these terms or other comparable terminology. Such statements include statements regarding our anticipated revenues, and our growth.  Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. These statements are only expectations and involve known and unknown risks, uncertainties, and other factors; our growth may not continue as anticipated and our revenue may not be as expected and  the risks outlined under "Risk Factors" in our Annual Report on Form 10-K for our fiscal year ended December 31, 2012, our Forms 10-Q, including the one issued  for the period ending September 30, 2013 and those discussed in other documents we file with the Securities and Exchange Commission, which may cause our actual results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements to differ materially from expectations.  Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations.

CVSL Media Contact:  Russell Mack (rmack@cvsl.us.com
CVSL Investor Relations Contact:  Scott Pumper (scottp@cvsl.us.com)

SOURCE CVSL Inc.



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