Today shares of foreign exchange provider, Ozforex Group Ltd (ASX: OFX), are trading 5% higher following an update on its banking relationships.
In an announcement to the ASX, OzForex said it will transfer all services provided by Westpac Banking Corp (ASX: WBC) to other banking partners, and added, "negotiations are well advanced with respect to banking services in New Zealand."
So far in 2015, OzForex shares are down 12.5% after falling heavily in mid-January following an announcement that Westpac – a long standing provider of transfer services for OzForex in Australia and New Zealand – said it would discontinue its involvement in the money service industry.
Commenting on today's announcement CEO Neil Helm said, "We are pleased at how quickly we will be able to transition the services currently provided by Westpac in Australia to our other existing banking partners. It clearly demonstrates the strength of our existing relationships and the confidence that our current banking partners have in our business."
Whilst it did not name the banks, Mr Helm said the company has added, "three new global banking partners."
"The addition of these new banking partners enables us to continue to manage our risks effectively and to expand the range of services we can offer our customers", Mr Helm said.
Should you buy OzForex shares?
OzForex has many appealing characteristics including a low cost offering and the ability to scale operations. However the recent resignation of Mr Helm, as CEO, amidst the fallout of the Westpac partnership heightens the uncertainty surrounding the company. When coupled with a rich share price, it's probably not a stock which Foolish investors should have their money invested in, for now.
