Attention Business/Financial Editors:
AADCO announces closing of final advance of funding announced April 13, 2006 and new funding of $200,000
AA: TSX - Venture Exchange
TORONTO, Aug. 9 /CNW/ - AADCO Automotive Inc. (the "Company") is pleased to announce the closing of the final advance of $50,000 of funding announced on April 13, 2006. As previously announced, the Company had entered into a convertible debenture (the "Debenture") in the maximum amount of $500,000 with Quorum Secured Equity Trust. The Company has met the criteria set out in the Debenture for the advances by executing efforts in the area of strategic acquisitions. To date, $500,000 has been advanced under the Debenture.
The Company also announces the closing of a new $200,000 convertible debenture funding (the "Debenture") with Quorum Investment Limited Partnership ("QIP"), disbursable in two tranches subject to the Company executing strategic initiatives in the area of acquisitions. The Company has satisfied one such requirement and accordingly one-half of the debenture, namely $100,000 has been disbursed. The Company has prepaid the entire first year's interest on this disbursement.
The Debenture matures on December 15, 2009 and bears interest of 8% per annum. The Debenture is also convertible into common shares of the Company at the rate of $0.10 during the first 2 years of the term of the Debenture, $0.11 in the third year, and $0.12 for the remainder of the term. A transaction fee of $6,000 was paid to QIP Management Inc., the management company of QIP. The expiry date of the hold period for the convertible debenture, or common shares issued as a consequence thereof is December 8, 2006, as with respect to the initial advance thereunder.
Robert Hodgkinson, Chairman said, "We are pleased to receive strong support from the Quorum Group of Companies for our strategic acquisitions plan".
About AADCO Automotive Inc. -- AADCO supplies recycled OEM automotive parts to collision repair businesses, mechanical shops, other recyclers, and consumers throughout the Greater Toronto Area. The Company is headquartered in Brampton, Ontario and is listed on the TSX Venture Exchange - AA.V.
The TSX - Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This press release includes forward-looking statements, including statements relating to the Company's marketing strategy, future sales growth, profitability, competitive position, and release of new products. The words "plan", "expect", "believe", "intend", "anticipate", "forecast", "target", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. The Company does not undertake to review or update these forward-looking statements.
For further information: AADCO Automotive Inc., (905) 789-9313, Charles Hodgkinson, CEO, chodgkinson@aadco.ca
