TSX-V Trading Symbol: FSN
RIDGELAND, MS, Jan. 14, 2014 /CNW/ - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (FSN.V) has determined that it will be unable to file its audited
annual financial statements and its related management's discussion and
analysis and certification of annual filings for the year ended
September 30, 2013 (the "Annual Filings") by the prescribed filing deadline of January 28, 2014. The Company
also anticipates that it will be unable to file its interim financial
report, related management's discussion and analysis and certification
of interim filings for the period ended December 31, 2013 (the "Interim Filings") by the prescribed filing deadline of March 3, 2014.
The Company's inability to meet the filing deadlines referred to above
(the "Defaults") is related to difficulties incorporating the financial information
for Simply Wheelz LLC, a wholly-owned subsdiary of the Company which
does business as Advantage Rent A Car and was acquired by the Company
on May 3, 2013, into the consolidated financial statements of the
Company, and to reduced resources available in light of the previously
announced insolvency proceedings for Simply Wheelz LLC.
The Company has applied to the Alberta Securities Commission ("ASC") for a management cease trade order ("MCTO") which would prohibit management and other insiders of the Company
from trading in securities of the Company. The MCTO would be in effect
until the Required Filings are filed.
The Company anticipates that it will be in a position to remedy the
Defaults by March 3, 2014 (in the case of the Annual Filings) and March
28, 2014 (in the case of the Interim Filings).
The Company intends to satisfy the provisions of the alternative
information guidelines set out in sections 4.3 and 4.4 of National
Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults.
FSNA is a publicly traded company listed on the TSX Venture Exchange.
The Company and its subsidiaries own the following brands: Advantage
Rent A Car, U-Save Car & Truck Rental® ("U-Save"), U-Save Car Sales, Rent-A-Wreck of Canada, PractiCar, Auto Rental
Resource Center ("ARRC"), Xpress Rent A Car and Peakstone Financial Services.
The Company operates the Advantage car rental brand at 72 corporate
locations in 33 states. Advantage has airport locations servicing 60
of the top 70 airports across the United States and those airports
account for more than US$10 billion in annual car rental revenue.
Advantage is the fourth largest independent rental car company in the
U-Save, together with its subsidiary ARRC, has over 900 locations
throughout the United States and is one of North America's largest
franchise car rental companies. U-Save currently services 19 airport
markets in 13 different states. Although primarily based in the United
States, U-Save has 18 international locations in Mexico, Greece, the
Middle East, Latin America, and the Caribbean.
Practicar Systems Inc. owns the rights to the Rent-A-Wreck® and the
PractiCar® trademarks for all of Canada. The Rent-A-Wreck® system
operates a network of 61 franchise locations from coast-to-coast in
Canada, providing a range of vehicle rental, leasing and sales options
to its customers. The Rent-A-Wreck® system has been in continuous
operation in Canada since 1976.
Certain statements made in this news release are forward-looking in
nature, including statements concerning the ability of FSNA to file the
Annual Filings and Interim Filings by March 3, 2014 and March 28, 2014,
respectively, and the issuance by the ASC of an MCTO. The words "may",
"could", "should", "would", "expect", "intend", "estimate",
"anticipate", "believe", or "outlook" and similar expressions often
identify forward-looking information. By their nature, forward-looking
statements require FSNA to make assumptions and are subject to inherent
risks and uncertainties. The forward-looking statements contained in
this news release are based on certain key expectations and assumptions
made by FSNA, including with respect to when the Company anticipates it
will be able to remedy the anticipated disclosure defaults noted
herein. Although FSNA believes that the expectations and assumptions on
which the forward-looking statements are based are reasonable, undue
reliance should not be placed on the forward-looking statements because
FSNA can give no assurance that they will prove to be correct. These
forward-looking statements also involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of FSNA to differ materially from the
anticipated results, performance or achievements or developments
expressed or implied by such forward-looking statements. If any such
risks actually occur, they could materially and adversely affect FSNA's
business, financial condition or results of operations. FSNA's
forward-looking statements are qualified in their entirety by these
cautionary statements. In addition, the forward-looking statements are
made only as of the date of this news release, and except as required
by applicable securities law, FSNA undertakes no obligation to publicly
update these forward-looking statements to reflect new information,
subsequent events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Franchise Services of North America Inc.
For further information:
For further information on FSNA or any of its operating subsidiaries please contact:
Thomas P. McDonnell, III
Franchise Services of North America Inc.