AADCO Automotive Inc. (AA: TSX - Venture Exchange)
BRAMPTON, ON, Nov. 27 /CNW/ - AADCO Automotive Inc. ("AADCO") announces
that it has reached agreements with five creditors to settle aggregate debt of
$5,060,050.27 by the issuance of 53,973,870 common shares. The debt represents
the amount owing effective December 28, 2007, being the same date as AADCO's
shareholders meeting at which approval for the settlement will be sought.
The shares issued to the creditors will have price of $0.09375 per share.
The number of shares issued as well as the price per share is calculated on a
post-consolidation basis with respect to a 5 to 1 share consolidation AADCO
anticipates carrying out. Issued shares will be subject to a 4-month hold
period and the TSX Venture Exchange may impose a time-release escrow provision
on a portion of the shares.
The debt relates to convertible debentures previously issued by AADCO, as
well as to a bridge loan and advances owing to a Director.
A Shares for Debt application will be filed by AADCO with the TSX Venture
Exchange, and closing of the transaction is subject to TSX Venture Exchange
approval as well as disinterested shareholder approval.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: AADCO Automotive Inc. (905) 789-9310,
www.aadco.ca; Charles Hodgkinson, Director, email@example.com