TORONTO, March 19 /CNW/ - Mortgagebrokers.com (the "Company") announced
that its strategic alliance partner Remax Ontario/Atlantic Canada has launched
a new website (www.remaxrsp.com) fully dedicated to its unique and exclusive
program with MortgageBrokers.com. Under this partnership any of the 9,000+
RE/Max realtors are encouraged to use the services of MortgageBrokers.com and
its rapidly growing national sales team.
By participating in this program, the portion of RE/Max sales
professional's referral fees will be deposited into a Retirement Savings
Account managed by Canada's largest insurance company Manulife Financial
(http://www.manulife.com/remax ). Manulife Financial Corporation trades as
'MFC' on the TSX, NYSE and PSE, and under '0945' on the SEHK. Manulife
Financial can be found on the Internet at www.manulife.com.
In June of 2006, Remax Ontario Inc. and Mortgagebrokers.com consummated
their 10 year strategic alliance, which included several RE/Max executives and
franchise brokers participating in an equity offering by Mortgagebrokers.com.
On June 9th of that year, the Company completed an offering in which it issued
a total of 2,112,470 shares of its common stock and a purchase warrant at a
price per share of $1.00.
Mortgagebrokers.com CEO Alex Haditaghi firmly believes that the Company
is on track for sustainable growth and profitability in 2008, "Our business
model is unique in that we are operating in a robust Canadian economy and a
mortgage/housing industry that has avoided the sub-prime woes of the US
market. Because we act only as funding "middle-men" between buyer and seller
for residential and commercial mortgage transactions, we have eliminated any
type of credit, underwriting or inventory risk on the loans we originate and
close. The risk analysis and thus the burden, if any, are borne by the lending
institutions. In addition, the Canadian mortgage industry, in general, has had
very little interest in risky, sub-prime loans."
Haditaghi believes that Mortgagebrokers.com has the right model at the
right time: "Our consolidation business plan is very attractive in
environments such as we are in today because we can provide small and medium
shop broker's access to strategic growth partners such as RE/Max Manulife,
Wells Fargo Financial as well making available a larger lender base. This
allows the broker to offer more competitive products, increase their brand
power and utilize an infrastructure which will allow them to reduce their
expenses by providing centralized back office services such as payroll,
compliance and marketing".
With a current market cap of approximately $3.7 million,
Mortgagebrokers.com feels that there exists tremendous potential for investors
to participate alongside the Company in the ongoing expansion of its business
model. In Haditaghi's opinion, the market value of Mortgagebrokers.com has
been affected as a result of the overall weakness in the U.S. mortgage
industry. Mortgagebrokers.com common stock is trading at all time low in spite
of the fact that the Company has had seven consecutive quarters of revenue
growth. Even with the current challenges in the residential and commercial
real state market, Mortgagebrokers.com continues to grow and will continue to
strive towards its goal of being North America's largest and fastest growing
mortgage brokerage firm.
This share price does create a great opportunity for current shareholders
and future shareholders to be part of a great company that is rapidly growing
and has its goals set on being one of North America's largest mortgage
For further information:
For further information: