TSX-V Trading Symbol: FSN
CALGARY, March 8 /CNW/ - Franchise Services of North America Inc. ("FSNA"
or the "Company") announced today that it has completed the second and final
closing of a public offering of 642,000 common shares in the capital of the
Company at CDN$0.85 per share for aggregate gross proceeds of CDN$545,700.
Blackmont Capital Inc. acted as agent for the Company with respect to the
offering, receiving a cash commission of $49,113, being an amount equal to 9%
of the gross proceeds from the sale of common shares at the second closing,
and compensation options entitling it to purchase for a period of 24 months,
at a price of $0.85 per share, 57,780 common shares, being a number of shares
equal to 9% of the common shares sold at the second closing.
In November 2006, U-Save Auto Rental of America, Inc. 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, Xpress
Rent A Car and Peakstone Insurance.
U-Save Auto Rental of America, Inc., with its subsidiary Auto Rental
Resource Center, has over 1100 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(R) 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.
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
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 8, 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: Robert M. Barton, Executive Vice President, Chief Operating Officer,
(601) 713-4333; www.fsna-inc.com