EDMONTON, March 30, 2012 /CNW/ - The Cash Store Australia Holdings Inc. ("Cash Store Australia" or the "Company") (TSXV:AUC) today provides notice of a temporary interruption to its brokerage activity.
"At the direction of the Board of Directors, we have been undergoing an intensive review of our customer-related policies and procedures. As a result of this review, the Company has chosen to replace its current loan contract, strengthen disclosure policies and upgrade its compliance procedures," said Gary Holden, Chief Executive Officer. "As a result, the Company has not offered new loans since March 17, 2012 as IT systems and training are modified. During this time however, we have continued with daily collections activity and cashing cheques for our customers."
Implementation of these revisions is expected to be completed by April 6, 2012. As a consequence, revenue for this quarter will be negatively impacted.
"Our aim is to improve readability and understanding of our offers, strengthen credit assessments, improve governance and increase timeliness of loan repayments," said Mr. Holden.
About Cash Store Australia
Cash Store Australia is the only payday advance broker in Australia publicly traded on the TSX Venture Exchange (TSXV:AUC). Cash Store Australia operates 81 payday advance branches in the Australian States and Territories of Victoria, Queensland, Tasmania, Northern Territory, New South Wales and South Australia under the banner "The Cash Store".
Cash Store Australia acts as a broker to facilitate payday advance services to income-earning consumers who may not be able to obtain them from traditional financial institutions.
Forward Looking Information
This News Release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to our objectives, strategies, operations and financial results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or forward looking statements indicate that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieve. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Cash Store Australia, to be materially different from those expressed or implied by such forward-looking information. All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends. Although we believe the assumptions used to make such statements are reasonable at this time and have attempted to identify in our continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Certain material factors or assumptions are applied by us in making forward-looking statements, include without limitation, factors and assumptions regarding our continued ability to fund our pay day loan business, rates of customer defaults, relationships with, and payments to, third party lenders, demand for our products, as well as our operating cost structure and current consumer protection regulations. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. We do not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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.
For further information:
on Cash Store Australia, please contact:
Gary Holden, Chief Executive Officer
(011) 61 (03) 9802 1566; e-mail: [email protected]
Bill Johnson, Chief Financial Officer
(780) 732-5695; e-mail: [email protected]