TSX-V Trading Symbol: FSN
CALGARY, Oct. 31, 2018 /CNW/ - FRANCHISE SERVICES
OF NORTH AMERICA INC.
("FSNA" or the "Company") (FSN.V) announces it has
entered into a settlement agreement with Macquarie Capital
(USA) Inc. ("Macquarie")
together with certain related individuals, Thomas P. McDonnell III and Boketo LLC
("Boketo"), (collectively the "Parties") pursuant to
which the Parties have agreed to resolve all outstanding claims and
litigation between them arising in connection with the Company's
acquisition of Simply Wheelz LLC and certain related assets and the
subsequent bankruptcy of Simply Wheelz LLC (the
"Settlement"). Pursuant to the Settlement, Boketo, a wholly
owned subsidiary of Macquarie, will transfer and surrender
62,212,600 shares of FSNA Preferred Stock (the "Preferred
Stock") within two business days of September 18, 2018. The Preferred Stock will
automatically convert into FSNA common stock immediately prior to
its transfer and surrender in accordance with FSNA's charter
documents and the terms of the Stockholders Agreement among FSNA,
Boketo, and Thomas P. McDonnell,
III, dated March 26, 2013,
which was previously described in our press release on May 3, 2013. In connection with its surrender of
the Preferred Stock, Boketo will also surrender all of its rights
as a stockholder of the Company. In addition, Boketo will
cause each of Messrs. Duncan
Murdoch, David Miller, and
James Forrest, in their capacity as
directors of the Company, to submit a letter of resignation within
two business days of September 18,
2018.
About FSNA
FSNA is a publicly traded company listed on the TSX Venture
Exchange. The Company and its subsidiaries own the following
brands: U-Save Car & Truck Rental® ("U-Save"), U-Save Car
Sales, 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.
Forward-Looking Information
Certain statements made in this news release are forward
looking in nature, including statements made with respect to
transfer of Preferred Stock, relinquishment of stockholder rights,
and resignation of certain directors. 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 the satisfaction of conditions contained in the Settlement
Agreement. 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. There can be no assurance that the
transfer of Preferred Stock, relinquishment of stockholder rights,
and resignation of certain directors will be completed as proposed
or at all. 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 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.
SOURCE Franchise Services of North America Inc.