Attention Business/Financial Editors:
AADCO ANNOUNCES CAPITAL TRANSACTION AND MANAGEMENT CHANGES
AADCO Automotive Inc. (AA: TSX - Venture Exchange)
Mr. Charles Hodgkinson, CEO of AADCO is pleased to announce the implementation of a bridge funding facility in a maximum amount of $1 million put into place by Company principals that will allow AADCO to immediately execute on its business plan while it finalizes longer term financing arrangements. This bridge facility is specific to the acquisition of inventory, and will allow the Company to immediately finance inventory of high quality fast moving LKQ auto parts to meet record demand, at rates significantly favourable to historical costs. This is the biggest inventory purchase program undertaken in the past two years by the Company.
The bridge loan facility is being made available by 858642 Alberta Ltd., a company owned and controlled by Mr. Robert L. Hodgkinson, one of the directors of AADCO and its largest shareholder. The loan facility carries interest of 12% per annum and an obligation to issue a maximum of 4,000,000 common shares to the Lender. The issuance of shares is subject to TSX Venture Exchange approval, and any shares, which are issued, will bear a four-month hold period from the date of issuance.
To assist with this anticipated growth, AADCO has appointed Mr. Vince Bulbrook as its Chief Financial Officer. Mr. Bulbrook has been a partner of The Sedona Group since February, 2003. Prior to that Mr. Bulbrook served as a Director of Finance and Innovation of Financial Models Company a publicly traded company, from 1999 through 2003. From 1994 until 1999 Mr. Bulbrook ran his own independent consulting practice. Mr. Bulbrook was with Price Waterhouse as a member of the technology practice from 1990 through 1994 and with Clarkson Gordon (Ernst & Young) from 1984 until 1990 where he moved from the accounting practice into providing corporate finance and restructuring services to businesses, investors and lenders. Mr. Bulbrook earned an Honors BA in Business Administration degree from The University of Western Ontario in 1984 and is a member of the Canadian Institute of Chartered Accountants (1987).
AADCO is also pleased to announce the appointment of Nancy Ng as Sales and Key Accounts Manager. Nancy comes to AADCO from a long-standing family business, which is one of Mississauga’s premier mechanical shops. Nancy has a long sales and relationship building history, is conversant in Cantonese and will be responsible for managing all of AADCO’s sales activity and client relationships. Her ability to speak Cantonese should be of assistance, as AADCO endeavors to do business in China.
Charlie Hodgkinson, CEO, expressed his thoughts on the new appointments, “The Company has benefited from the moment each of these individuals focused on AADCO, with their knowledge, energy and commitment to excellence. We are very pleased to attract this high quality talent and that they see the same tremendous opportunity for AADCO that we do.”
These changes are being made as AADCO continues to execute its business plan, which entails combining the right management, capital and clients, as it grows into a national and international supplier of quality, used (LKQ) auto parts.
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
