Franchise Services of North America Inc. provides default status report
TSX-V Trading Symbol: FSN
RIDGELAND, MS, Feb. 28, 2014 /PRNewswire/ - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (FSN.V) provides the following update in connection with the Management Cease Trade Order ("MCTO") issued by the Alberta Securities Commission on January 29, 2014 in accordance with National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203") and pursuant to the requirements of the alternative information guidelines ("AIG") set forth in NP 12-203.
The Company applied for the MCTO once it determined that it would be unable to file its audited annual financial statements and its related management's discussion and analysis and certification of annual filings for the year ended September 30, 2013 (the "Annual Filings") by the prescribed filing deadline of January 28, 2014.
Since the issuance of its last default status report on February 14, 2014 and in light of the recent resignation of the Company's Chief Financial Officer, the Company has determined that it will not be in a position to complete the Annual Filings by March 3, 2014 (as previously anticipated) but currently expects that it will be in a position to complete the Annual Filings by March 28, 2014. The Company continues to work with its auditors to prepare and finalize the Annual Filings.
As previously disclosed, the Company has determined that it will be unable to file its interim financial report, related management's discussion and analysis and certification of interim filings for the period ended December 31, 2013 (the "Interim Filings") by the prescribed filing deadline of March 3, 2014. The Company currently expects to be in a position to complete the Interim Filings by March 28, 2014. The MCTO will remain in effect until all required filings are filed.
There has not been any other specified default by the Company under NP 12-203 or any failure by the Company in fulfilling its stated intentions with respect to satisfying the AIG and there is no material information concerning the affairs of the Company that has not been generally disclosed.
FSNA is a publicly traded company listed on the TSX Venture Exchange. The Company and its subsidiaries own the following brands: Advantage Rent A Car, U-Save Car & Truck Rental® ("U-Save"), U-Save Car Sales, Rent-A-Wreck of Canada, PractiCar, Auto Rental Resource Center ("ARRC"), Xpress Rent A Car and Peakstone Financial Services.
U-Save, together with its subsidiary ARRC, has over 900 locations throughout the United States and is one of North America's largest franchise car rental companies. U-Save currently services 19 airport markets in 13 different states. Although primarily based in the United States, U-Save has 18 international locations in Mexico, Greece, the Middle East, Latin America, and the Caribbean.
Practicar Systems Inc. owns the rights to the Rent-A-Wreck® and the PractiCar® trademarks for all of Canada. The Rent-A-Wreck® system operates a network of 61 franchise locations from coast-to-coast in Canada, providing a range of vehicle rental, leasing and sales options to its customers. The Rent-A-Wreck® system has been in continuous operation in Canada since 1976.
Certain statements made in this news release are forward-looking in nature, including statements concerning the ability of FSNA to file the Annual Filings and the Interim Filings by March 28, 2014. The words "may", "could", "should", "would", "expect", "intend", "estimate", "anticipate", "believe", or "outlook" and similar expressions often identify forward-looking information. By their nature, forward-looking statements require FSNA to make assumptions and are subject to inherent risks and uncertainties. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by FSNA, including with respect to when the Company anticipates it will be able to remedy the anticipated disclosure defaults noted herein. Although FSNA believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because FSNA can give no assurance that they will prove to be correct. These forward-looking statements also involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of FSNA to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. If any such risks actually occur, they could materially and adversely affect FSNA's business, financial condition or results of operations. FSNA's forward-looking statements are qualified in their entirety by these cautionary statements. In addition, the forward-looking statements are made only as of the date of this news release, and except as required by applicable securities law, FSNA undertakes no obligation to publicly update these forward-looking statements to reflect new information, subsequent events or otherwise.
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.
SOURCE Franchise Services of North America Inc.