Attention Business/Financial Editors:
AADCO Automotive Inc.
AADCO Automotive Inc. (AA: TSX - Venture Exchange)
BRAMPTON, ON, March 8 /CNW/ - AADCO Automotive Inc. ("AADCO") announces today the closing of a $1,050,000 financing with Quorum P.I.P.E. Trust. The financing has a term maturing on December 15, 2009, bears an interest rate of 6%, and is convertible into Common Shares of AADCO at the rate of $0.10 per share during the first 2 years of the term, and at $0.11, $0.12, and $0.13 per share during the third, fourth, and fifth years of term, respectively, and is callable by AADCO upon certain performance conditions being met.
Proceeds of the funding will be used to accelerate the company's inventory purchase program, further develop strategic marketing plans, and focus on key acquisitions and alliances.
Coincident with closing of this funding, in excess of $4,600,000 of current 12% and 16% debentures is being converted into Common Shares of AADCO, thereby strengthening AADCO's balance sheet. This completes the cost cutting program initiated in April of 2003 which has trimmed in excess of $2,000,000 from the Company's annual overhead, putting AADCO in position to 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
