TORONTO, Nov. 29 /CNW/ - MortgageBrokers.com Holdings, Inc. (OTCBB: MBKR)
(the "Company") recently announced its revenues for the third quarter ended
September 30, 2007. Revenues for the third quarter of 2007 were $3.38 million
as compared to $1.31 million during the Company's third quarter of 2006, an
increase of over 158%. For the nine months ended September 30th, 2007 the
Company generated $7.01 million in revenue as compared to $2.4 million in
revenue for the same period in 2006 - an increase of over 192%.
- During the third quarter of 2007, the Company increased its national
sales force of mortgage agents to 307, from 247 agents on July 1, 2007
and expanded its brand presence through the establishment of 8
additional retail offices in Canada;
The Company wishes to announce that it will not achieve the revenue
projections for fiscal 2007 that the Company had previously announced in some
of its filings with the United States Securities & Exchange Commission and in
some of the Company's press releases. The Company's original projections were
based in part upon the Company entering the United States market place via
acquisitions; however, the current U.S. sub-prime mortgage and credit market
devaluation has resulted in the Company suspending plans to expand into the
U.S. mortgage market until such time as the full economic effect of the
current market turmoil is known. Additionally, the Company's current Canadian
operations have not performed as well as expected due to the fall out effect
of the U.S. sub-prime lending downturn on the Canadian mortgage market which
resulted in some Canadian sub-prime lenders no longer being able to fund
sub-prime mortgages. As well, the Company's original growth projections were
based upon the past performance of its recruited mortgage agents; but the
Company has found that the ramp up of the Company's newly recruited mortgage
agents has been slower than expected.
On May 22, 2007, the Company filed a Current Report on Form 8-K
disclosing a change of auditors. At the request of the Company's former
auditors (SF Partnership, LLP), the Form 8-K stated that SF Partnership
resigned because of an impairment of its objectivity and independence due to a
threat of litigation by the Company and because of SF Partnership's concerns
regarding the conduct and lack of integrity of management. At this time, the
Company would like to clarify that it changed its auditors due to a billing
dispute with SF Partnership. In compliance with SEC rules, the Company
requested SF Partnership to furnish a letter addressed to the SEC stating
whether it agreed with the statements made by the Company in the Form 8-K.
However, this letter has not, to date, been provided by SF Partnership and,
therefore, was not included in the above referenced Form 8-K. The Company also
wishes to confirm that it had a past relationship with its new auditors,
Jewett Schwartz Wolfe & Associates, in that they were the Company's auditors
prior to the SF Partnership engagement.
MortgageBrokers.com is a mortgage brand and technology firm. The Company
is dedicated to re-branding the over 40,000 small and medium mortgage broker
(SME) firms in North America while providing these entities scalability
through a centralized shared services platform. MortgageBrokers.com is
designed to facilitate continued ownership for these SME brokers while they
work under the umbrella of one globally recognized brand. The Company provides
centralized services in the areas of payroll and accounting, compliance,
marketing, technology, HR and lead generation to afford its brokers improved
access to potential customers through strategic alliances and partnerships.
MortgageBrokers.com also provides its national team the opportunity to
leverage origination with lending institutions, establish higher referral fees
from lenders, and give its team members the ability to earn ownership in a
publicly-traded entity with the goal of an eventual career exit strategy.
Cautionary Note Regarding Forward-Looking Statements
Statements included in this press release, which are not historical in
nature, are intended to be, and are hereby identified as "Forward-Looking
Statements" for purposes of safe harbor provided by Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-Looking Statements may be
identified by words including "anticipate," "await," envision," "foresee,"
"aim at," "plans," "believe," "intends," "estimates" and "expects" including
without limitation, those relating to the company's future business prospects,
and are subject to certain risks and uncertainties that could cause actual
results to differ materially from those indicated in the Forward-Looking
Statements. Readers are directed to the company's filings with the U.S.
Securities and Exchange Commission for additional information and a
presentation of the risks and uncertainties that may affect the company's
business and results of operations. www.sec.gov.
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