Attention Business/Financial Editors:
AADCO announces Shares for Debt application
AADCO Automotive Inc. (AA: TSX - Venture Exchange)
BRAMPTON, ON, April 7 /CNW/ - AADCO Automotive Inc. ("AADCO") announces that it has reached agreements with three creditors to settle aggregate debt of $191,069.46 by the issuance of 1,817,096 common shares. The shares issued to the creditors will have an average price of $0.105 per share and will be subject to a 4-month hold period. The debt relates to the following: (a) $88,111 of principal owing to a creditor under a non-convertible debenture, and (b) $102,958.46 in dividends declared and payable to holders of AADCO's Series 2 Preferred Shares. The dividends were declared on the condition that the holders of the Series 2 Preferred Shares convert into Common Shares of AADCO at the rate of one Common Share for each $1.65 of investment in the Series 2 Preferred Shares, as specifically provided for in AADCO's Articles of Incorporation, as amended.
A Shares for Debt application will be filed by AADCO with the TSX Venture Exchange, and closing of the transaction is subject to TSX Venture Exchange approval.
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
