/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/
CALGARY, March 20 /CNW/ - Canada's Pizza Delivery Corp. (TSXV: CPZ) (the
"Corporation") is pleased to provide an update on corporate activities. Since
the board of directors was changed on January 23, 2007 a number of significant
steps have been taken to reorganize the Corporation.
The head office of the Corporation is in the process of being moved from
Calgary, Alberta to a smaller office in Kitchener, Ontario. The existing
Calgary premises are in the process of being sub-let at a modest annual
Day-to-day accounting functions have been outsourced to McAlpine and
Company Inc. of Woodstock, Ontario with expected net annual savings of
$200,000 to $300,000 per year.
The Corporation has negotiated a concession from its master franchisor
allowing it to temporarily reduce its number of corporate owned stores to 8.
The Corporation is required to be back to 13 corporate stores by the end of
2007 and 20 corporate stores by the end of 2008. Twelve corporate stores have
been sold or closed with net proceeds to the Corporation of approximately
$950,000. These proceeds are being used to reduce debt and to partially fund
the acquisition of three new stores, in Grande Prairie, Dawson Creek and Fort
In connection with the foregoing the Corporation has terminated or
laid-off nine head office employees including the President of the
Corporation, five trainers, a franchise administrator, and an in-house
counsel. The Corporation has added two new field personnel and a new in-house
The Corporation anticipates approximately 18 to 20 new franchisee
operated stores will be open over the balance of the year.
The Corporation is pleased to announce that Jeffrey E. Dyck, a partner in
the law firm Gowling Lafleur Henderson LLP, was appointed a director of the
Corporation on March 15, 2007.
The Corporation is also pleased to announce that it has proposed to
undertake a non-brokered private placement of up to 3,000,000 common shares at
$0.50 per common share for aggregate gross proceeds of up to $1,500,000.
Closing of this private placement of common shares is subject to normal
exchange and regulatory approvals and will take place as soon as such
approvals are obtained. The common shares sold under the financing will be
subject to a four-month hold period. Proceeds of the offering will be used for
general corporate purposes.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy and accuracy of this release.
Not for dissemination in the United States of America. This news release
shall not constitute an offer to sell or the solicitation of any offer to buy
securities of the Corporation in any jurisdiction, including the United
States. The Common Shares have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act")
or any state securities laws and have not been and will not be offered or sold
in the United States or to any U.S. person except in certain transactions
exempt from the registration requirements of the U.S. Securities Act and
applicable state securities laws.
For further information:
For further information: Roberto Ledeboer, Director of the Corporation
at (403) 230-1151