TSX-V Trading Symbol: FSN
RIDGELAND, MS, Jan. 14, 2014 /PRNewswire/ - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (FSN.V) has determined that it will 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. The Company also anticipates 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's inability to meet the filing deadlines referred to above (the "Defaults") is related to difficulties incorporating the financial information for Simply Wheelz LLC, a wholly-owned subsdiary of the Company which does business as Advantage Rent A Car and was acquired by the Company on May 3, 2013, into the consolidated financial statements of the Company, and to reduced resources available in light of the previously announced insolvency proceedings for Simply Wheelz LLC.
The Company has applied to the Alberta Securities Commission ("ASC") for a management cease trade order ("MCTO") which would prohibit management and other insiders of the Company from trading in securities of the Company. The MCTO would be in effect until the Required Filings are filed.
The Company anticipates that it will be in a position to remedy the Defaults by March 3, 2014 (in the case of the Annual Filings) and March 28, 2014 (in the case of the Interim Filings).
The Company intends to satisfy the provisions of the alternative information guidelines set out in sections 4.3 and 4.4 of National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults.
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.
The Company operates the Advantage car rental brand at 72 corporate locations in 33 states. Advantage has airport locations servicing 60 of the top 70 airports across the United States and those airports account for more than US$10 billion in annual car rental revenue. Advantage is the fourth largest independent rental car company in the United States.
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 Interim Filings by March 3, 2014 and March 28, 2014, respectively, and the issuance by the ASC of an MCTO. 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.