TSX-V Trading Symbol: FSN
TORONTO, March 28 /CNW/ - Franchise Services of North America Inc.
("FSNA" or the "Company") held today its first annual meeting of shareholders
(the "Annual Meeting") since the previously announced reverse takeover
transaction between the Company and U-Save Auto Rental of America, Inc. that
occurred on November 30, 2006.
At the Annual Meeting, all of management's nominees, being Mr. Sandy
Miller, Mr. Tom McDonnell, Mr. David Forseth, Mr. Phil DeLeon and Mr. Michael
Linn, were elected to the Company's Board of Directors for the ensuing year.
In addition, BDO Seidman, LLP, of Memphis, Tennessee, were reappointed as the
At a Board of Directors' meeting (the "Directors Meeting") held
immediately following the conclusion of the Annual Meeting, the independent
directors, namely, Messrs. Forseth, DeLeon and Linn (the "Independent
Directors") were each granted 15,000 options ("Options") to acquire common
shares in the capital of FSNA in accordance with the Company's amended and
restated stock option plan (the "Option Plan"), for their services to the
Company as directors. Pursuant to the terms of the option agreements entered
into between the Company and each of the Independent Directors (the "Option
Agreements"), and subject to earlier termination in accordance therewith, the
Options will vest over a period of four years, with 25% of the Options vesting
on each of the first, second, third and fourth anniversary date of the grant
of the Options. Each Option has an exercise price of $0.85 per Option, being
an amount equal to the price per Common Share sold pursuant to the Company's
recent prospectus offering.
"We are very pleased to award these options to these individuals
providing direction and advice to the Company, and this complements their own
personal investments in the Company as shareholders," said Sandy Miller,
Co-Chairman and Co-Chief Executive Officer of the Company.
Also at the Directors' Meeting, certain amendments to the Option Plan
were approved by the directors in accordance with the requirements of the TSX
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, 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.
Certain information included in this press release is of a
forward-looking nature. Forward-looking information can often be identified by
forward-looking words such as "anticipate", "believe", "expect", "goal",
"plan", "intend", "estimate", "may", and "will" or similar words suggesting
future outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions or statements about future events or performance.
Shareholders and other prospective investors are cautioned not to place undue
reliance on forward-looking information. Forward-looking information is
subject to known and unknown risks, assumptions, uncertainties and other
factors. Accordingly, actual results may differ materially from those
expressed or implied in forward-looking information. Some of the risks,
assumptions, 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
www.sedar.com. Information in this document is presented as of March 28, 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 this
transaction and has neither approved or disapproved the contents of this
For further information:
For further information: on FSNA or any of its operating subsidiaries
contact: Alison Tullis, CHF Investor Relations, (416) 868-1079; Robert M.
Barton, Chief Operating Officer, (601) 713-4333, www.fsna-inc.com