CALGARY, Jan. 11 /PRNewswire-FirstCall/ -- Franchise Services of North America Inc. ("FSNA" or the "Company") announces that it has filed in each of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Nova Scotia an amended and restated final short form prospectus (the "Amended and Restated Prospectus"), which amends and restates the final short form prospectus filed in those jurisdictions on December 18, 2006 (the "Prospectus").
Pursuant to an agency agreement dated December 18, 2006 (the "Agency Agreement"), the Company engaged Blackmont Capital Inc. ("Blackmont" or the "Agent") to act as agent for a public offering of a minimum of 4,705,883 common shares and a maximum of 9,411,764 common shares in the capital of FSNA ("Common Shares") at a price of $0.85 per Common Share (the "Offering"). In connection therewith, the Company granted to the Agent an over-allotment option, exercisable for a period of up to 30 days following the closing of the Offering, entitling the Agent to sell up to 15% of the total number of Common Shares sold under the Offering (the "Over-Allotment Option"), such Common Shares covering the Over-Allotment Option being sold from the holdings of Thomas P. McDonnell, III, Sanford Miller and David I. Forseth (collectively, the "Selling Securityholders").
Pursuant to an amending agreement to the Agency Agreement dated January 11, 2007 (the "Amending Agreement"), the Company, the Agent and the Selling Securityholders have agreed to amend certain of the terms pursuant to which Blackmont has agreed to act as agent.
Closing of the Offering is expected to occur on or about January 19, 2007 and is subject to certain conditions including, but not limited to, receipt of all necessary securities regulatory approvals (including the approval of the TSX Venture Exchange).
The securities being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to purchase securities in the United States.
About FSNA
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In November, 2006, U-Save Auto Rental of America, Inc. ("U-Save") and Rent-A-Wreck Capital Inc. completed a reverse takeover transaction. The resulting company, FSNA, is a publicly traded company on the TSX Venture Exchange. The Company and its subsidiaries own the following brands: U-Save Car & Truck Rental, U-Save Car Sales, Rent-A-Wreck of Canada, Auto Rental Resource Center (ARRC), Xpress Rent A Car and Peakstone Insurance.
U-Save, with its subsidiary ARRC (Auto Rental Resource Center), has over 1,100 locations throughout the United States and is one of North America's largest franchise car rental companies. Having primarily serviced the local market for the past 25 years, current expansion plans call for the opening of airport locations in the top 30 markets in the United States and the major airports in Canada. U-Save currently services 24 airport markets in 12 different states. U-Save Car Sales is a recent expansion of the U-Save brand into the car sales market.
Practicar Systems Inc. (a wholly owned subsidiary of FSNA) owns the rights to the Rent-A-Wreck(R) trademark for all of Canada. The Rent-A-Wreck(R) system operates a network of 50 franchises from coast-to-coast in Canada, providing a range of vehicle rental, leasing and sales options to its customers. The Rent-A-Wreck(R) system has been in continuous operation in Canada since 1976.
Forward-Looking Information
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Certain information included in this press release is of a forward-looking nature. Forward-looking information is subject to known and unknown risks, as well as uncertainties and other factors. Accordingly, actual results may differ materially from those expressed or implied in forward-looking information. Some of the risks, uncertainties and other factors affecting FSNA are discussed in our public filings with the securities regulatory authorities in Canada. Copies of FSNA's Canadian filings, including our most recent management information circular, annual information form, interim financial statements, material change reports and news releases, are available online at http://www.sedar.com/. Information in this document is presented as of January 11, 2007 and is subject to change after this date. However, FSNA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange has in no way passed upon the merits of the
prospectus financing and has neither approved nor disapproved the
contents of this press release.
