The universe of alternative financial services might be about who is doing the buying of the META FINANCIAL GROUP

[So META BANK/NETSPEND doesn’t want to be in

compliance…. Take note of this as a consumer!!!]

NetSpend and Liberty Tax Buying Some CASH

August 20th, 2012

Meta Financial Group (ticker: CASH) said that it will sell 1.56 million shares of its common stock to several private investors.

While the business community seemed to focus on the fact that the shares were going to be sold at a discount to the current trading price, the bigger story for those within the universe of alternative financial services might be about who is doing the buying.

It looks like two of the buyers will be NetSpend and Liberty Tax.

Meta Financial Group is the parent company of MetaBank and Meta Payment Systems.

    • The bank is one of the largest issuers of prepaid debit cards.

    • MPS is one of the larger payments processors in the country.

NetSpend’s Buy

NetSpend will buy as many as 50,000 shares at a price which will be determined by an average of the trading price of Meta’s shares over a twenty day period. See the SEC filing at http://www.sec.gov/Archives/edgar/data/907471/000114036112037694/ex99_9.htm.

The amount is indefinite because NetSpend wants to make sure that it owns no more than 4.99 percent of MetaBank’s outstanding shares.

Were NetSpend to acquire more, the company would be face additional compliance responsibilities as a large shareholder. [So META BANK/NETSPEND doesn’t want to be in compliance…. Take note of this as a consumer!!!]

The Liberty Tax Spend

JTH Holding, the parent of Liberty Tax, intends to purchase as many as 136,000 shares of CASH. [ Now we must also be wary of JTH Holding] The exact amount is unknown, but will mean that after the transaction clears, JTH will own 9.999 percent of MetaBank’s common stock. See the filing at http://www.sec.gov/Archives/edgar/data/907471/000114036112037694/ex99_8.htm.

Meta Financial says that it intends to use 90 percent of

the cash to shore up the Tier 1 capital of MetaBank.

[Tier 1 capital of METABANK, yet another name for Meta Bank for which the consumer must be aware and watchful.]

Filed under: unbanked | Tags: cash, Liberty Tax, MetaBank, NetSpend, ntsp

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