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DALLAS, July 28, 2020 /PRNewswire/ -- Crossroads Systems, Inc. (OTCQB: CRSS) ("Crossroads" or the "Company"), a holding company focused on investing in businesses that promote economic vitality and community development, has appointed Gateway Investor Relations, a leading strategic financial communications and capital markets advisory firm, to manage its expanded investor relations program initiatives, including providing corporate messaging and other consulting services to the Company.
Gateway will work closely with Crossroads management over the coming months to develop and deploy a comprehensive outreach and communications program. Activities will include but are not limited to: refining overall company and investment-oriented messaging and corporate positioning, strategic advisory services, and introductions to institutional investors, sell-side analysts and other key influencers in the broader financial community. Gateway will also assist in organizing roadshows and securing invitations to select financial conferences, including its annual Gateway Conference.
In November, Crossroads announced that it had reached a definitive agreement to acquire Rice Bancshares, Inc. ("RBI"), a registered bank holding company and owner of The First State Bank, a Texas Banking Association. RBI, through The First State Bank, operates four full service banking locations in low to moderate income tracts in the Navarro and Ellis Counties, which are south of Dallas, Texas. As of June 30, 2020, First State Bank had a reported $170 million in assets and total equity capital of $20.7 million. The transaction remains subject to customary closing conditions, including the receipt of regulatory approvals. Approval of the merger agreement by the shareholders of RBI has been completed.
"Over the past few years Crossroads has taken deliberate steps to enhance its investment profile, and we believe there is significant value that can still be unlocked from our platform for sustainable growth over the long term," said Company CEO Eric Donnelly. "While the long term impacts from the global pandemic remain uncertain, demand for affordable housing in Texas continues to be robust, and the market for serving unbanked and underbanked customers in our core market remains a widely untapped and continuously developing opportunity. Additionally, our proposed transaction with RBI should provide immediate value accretion to our shareholders and predictability to the balance sheet in the current low funding cost environment.
"With these catalysts and other demographic tailwinds, the timing is right to partner with a proven financial communications firm like Gateway to spread our message to the wider investment community. Going forward, we'll be looking to leverage their hard-won relationships with the buy- and sell-side to introduce the Crossroads story to a new audience. We believe our growth story and unique positioning will be well received and ultimately lead to many ancillary benefits for our loyal shareholders."
About Gateway Investor Relations
Gateway is a leading strategic financial communications and capital markets advisory firm. For more than 20 years, the firm has delivered superior performance in strategic consulting, corporate messaging and positioning, investor awareness, and analyst and financial press coverage. Gateway executives have extensive experience in capital markets and financial communications, and represent clients in a wide range of industries, including technology, consumer, industrials, financial services, and business services. To learn more, please visit gatewayir.com. Make sure to follow us on Twitter, LinkedIn and Facebook.
About Crossroads Systems
Crossroads Systems, Inc. (OTCQB: CRSS), is a holding company focused on investing in businesses that promote economic vitality and community development. Crossroads' subsidiary, Capital Plus Financial (CPF), is a certified Community Development Financial Institution (CDFI) and certified B- Corp which supports Hispanic homeownership with a long term, fixed rate single family mortgage product.
About Rice Bancshares, Inc.
Founded in 1928, The First State Bank of Rice is a member of the Rice Bancshares, Inc. located in Rice, Texas. FSB of Rice offers the services of a modern financial institution while maintaining the integrity of a community bank where decisions are made locally.
Investor Relations Contact:
Gateway Investor Relations
Matt Glover and Tom Colton
SOURCE Crossroads Systems