Attention Business/Financial Editors:
AADCO Automotive Inc. and Quorom Funding Corporation Jointly Announce Financing
AADCO Automotive Inc. (AA: TSX - Venture Exchange)
BRAMPTON, ON, Feb. 3 /CNW/ - AADCO Automotive Inc. (the "Company") and Quorum Funding Corporation of Toronto jointly announce that they have signed a term sheet with a Quorum managed fund to provide AADCO with up to $2,120,000 in 5yr-6% convertible, callable, debenture financing.
The funding is subject only to final due diligence, receipt of a signed irrevocable commitment letter and formal TSX Venture Exchange approval. Closing is expected in the month of February.
Proceeds from the funding will be used to boost inventory to meet customer demand, further develop strategic market and financing alliances, and close key acquisitions. Upon closing of this funding, approximately $5mm of current 12% and 16% interest debt will have been equitized creating the strongest balance sheet since the Company's inception. This will complete the cost cutting program initiated in April of 2003, and will have trimmed in excess of $2mm from the Company's annual overhead putting AADCO in position to aggressively pursue its market expansion goals.
About AADCO
AADCO Automotive Inc. is a growing, Canadian public company with a unique business model committed to complete vehicle dismantling to provide quality used OEM parts, recyclable core from insurance salvage and aftermarket parts to meet the needs of the collision/ mechanical repair industry, as well as the remanufacturing industry through it's Coreline division. AADCO serves over 3,000 mechanical and collision repair clients across Ontario through its LKQ parts division. AADCO maintains one of the largest unbolted inventory of quality used OEM parts in Canada at its 87,000 sq. ft. facility in Brampton, Ontario. AADCO is the only auto recycler to have been awarded the Ecologo for environmental stewardship.
The TSX - Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For further information: Please contact: AADCO Automotive Inc. - (905) 789-9313, Charles Hodgkinson, CEO, chodgkinson@aadco.ca
