Franchise Services of North America Inc. Reports Anticipated TSX Venture Exchange Reclassification
TSX-V Trading Symbol: FSN
RIDGELAND, MS, April 3, 2014 /PRNewswire/ - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (FSN.V) reports that the TSX Venture Exchange has advised that, effective April 16, 2014, the Company will be reclassified from Tier 1 to Tier 2 pursuant to Exchange Policy 2.5 should the disclosure deficiencies (the "Deficiencies") that caused the imposition of the cease trade order issued on April 1, 2014 by the Alberta Securities Commission (the "ASC") against the Company not be resolved and/or the Company's securities remain suspended after 10 business days. This reclassification has no impact on the Company's business or prospects and will not result in any change to the Company's trading symbol.
As most recently disclosed by the Company in a press release disseminated on April 2, 2014, the Deficiencies relate to the Company (a) failing 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"), and (b) failing 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"), in each case prior to the deadline of March 28, 2014 set forth in the Management Cease Trade Order previously granted to the Company by the ASC.
As the Company anticipates that it will not be in a position to file both the Annual Filings and the Interim Filings on or before April 16, 2014, the Company expects that it will be reclassified as Tier 2 by the TSX Venture Exchange.
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 anticipated reclassification of FSNA by the TSX Venture Exchange to Tier 2. 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 Deficiencies. 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.