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SOURCE Franchise Services of North America Inc.
TSX-V Trading Symbol: FSN
RIDGELAND, MS, Feb. 3, 2014 /PRNewswire/ - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (FSN.V) announces that, further to its news release dated January 14, 2014, the Company has received a Management Cease Trade Order ("MCTO") from the Alberta Securities Commission ("ASC"), the Company's principal regulator, on January 29, 2014, in accordance with National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203").
The Company applied for the MCTO once it was determined that it would be unable to file its audited annual financial statements and its related management's discussion and analysis and certification of annual filings for the year ended September 30, 2013 (the "Required Filings") by the prescribed filing deadline of January 28, 2014.
The MCTO imposes trading restrictions on securities of the Company, whether direct or indirect, by certain members of management of the Company and remains in effect until the Required Filings are filed. All other parties are permitted to trade freely in the Company's securities.
The Company is currently working with its auditors to prepare and finalize the Required Filings. The Company currently anticipates that it will be in a position to complete the Required Filings by March 3, 2014
The Company intends to comply with the provisions of the alternative information guidelines ("AIG") set out in section 4.4 of NP 12-203 for as long as it remains in default, including the issuance of bi-weekly default status reports, each of which will be issued in the form of a news release.
Pursuant to the requirements of the AIG, the Company reports that, since the issuance of the default announcement on January 14, 2014, there has not been any material change to the information provided therein, nor has there been any failure by the Company in fulfilling its stated intentions with respect to satisfying the AIG. As disclosed in the default announcement, the Company anticipates that it will be unable to file its interim financial report, related management's discussion and analysis and certification of interim filings for the period ended December 31, 2013 by the prescribed filing deadline of March 3, 2014. There has not been any other specified default by the Company under NP 12-203 and there is no material information concerning the affairs of the Company that has not been generally disclosed.
FSNA is a publicly traded company listed on the TSX Venture Exchange. The Company and its subsidiaries own the following brands: Advantage Rent A Car, U-Save Car & Truck Rental® ("U-Save"), U-Save Car Sales, Rent-A-Wreck of Canada, PractiCar, Auto Rental Resource Center ("ARRC"), Xpress Rent A Car and Peakstone Financial Services.
U-Save, together with its subsidiary ARRC, has over 900 locations throughout the United States and is one of North America's largest franchise car rental companies. U-Save currently services 19 airport markets in 13 different states. Although primarily based in the United States, U-Save has 18 international locations in Mexico, Greece, the Middle East, Latin America, and the Caribbean.
Practicar Systems Inc. owns the rights to the Rent-A-Wreck® and the PractiCar® trademarks for all of Canada. The Rent-A-Wreck® system operates a network of 61 franchise locations from coast-to-coast in Canada, providing a range of vehicle rental, leasing and sales options to its customers. The Rent-A-Wreck® system has been in continuous operation in Canada since 1976.
Certain statements made in this news release are forward-looking in nature, including statements concerning the ability of FSNA to file the Required Filings by March 3, 2014. The words "may", "could", "should", "would", "expect", "intend", "estimate", "anticipate", "believe", or "outlook" and similar expressions often identify forward-looking information. By their nature, forward-looking statements require FSNA to make assumptions and are subject to inherent risks and uncertainties. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by FSNA, including with respect to when the Company anticipates it will be able to remedy the anticipated disclosure defaults noted herein. Although FSNA believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because FSNA can give no assurance that they will prove to be correct. These forward-looking statements also involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of FSNA to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. If any such risks actually occur, they could materially and adversely affect FSNA's business, financial condition or results of operations. FSNA's forward-looking statements are qualified in their entirety by these cautionary statements. In addition, the forward-looking statements are made only as of the date of this news release, and except as required by applicable securities law, FSNA undertakes no obligation to publicly update these forward-looking statements to reflect new information, subsequent events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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