EDMONTON, AB, Oct. 9, 2014 /CNW/ - The Cash Store Financial Services Inc. ("Cash Store Financial" or the
"Company") announced today that it has entered into a binding agreement
(the "Agreement") to sell a portion of its business and assets (the
"Transaction") to National Money Mart Company ("Money Mart").
Money Mart submitted its proposal in accordance with Cash Store
Financial's Court-approved sale process under the Companies' Creditors
Arrangement Act (the "Sale Process").
Cash Store Financial's Chief Restructuring Officer and Rothschild Inc.,
the Company's financial advisor, in consultation with the CCAA
Court-appointed Monitor, FTI Consulting Canada Inc. (the "Monitor"),
have determined that the bid submitted by Money Mart was the most
favourable bid received, and was therefore selected pursuant to the
terms of the Sale Process.
The Agreement and the completion of the Transaction remain subject to
Court approval in Canada, certain regulatory approvals and the
satisfaction of certain closing conditions customary to transactions of
this nature.
The current expectation is that the transaction will be completed by
late 2014 or early 2015, following court and regulatory approval. Cash
Store Financial will provide further updates on the process in due
course as the necessary approvals are obtained and the Transaction is
finalized.
In the interim, Cash Store will continue to operate its business as
usual.
Further details regarding the Transaction, along with other details
regarding the Company's Companies' Creditors Arrangement Act
proceedings, are available on the Monitor's website at http://cfcanada.fticonsulting.com/cashstorefinancial. The Company will continue to provide updates on its restructuring and
the Transaction as matters advance.
About Cash Store Financial
Cash Store Financial and Instaloans primarily act as lenders to
facilitate short-term advances and provide other financial services to
income-earning consumers who may not be able to obtain them from
traditional banks. Cash Store Financial also provides private-label
debit cards.
Cash Store Financial is a Canadian corporation that is not affiliated
with Cottonwood Financial Ltd. or the outlets Cottonwood Financial Ltd.
operates in the United States under the name "Cash Store". Cash Store
Financial does not do business under the name "Cash Store" in the
United States and does not own or provide any consumer lending services
in the United States.
Forward Looking Statements:
This news release contains certain forward-looking statements about the
objectives, strategies, financial conditions, results of operations and
businesses of Cash Store Financial. Statements that are not historical
facts are forward-looking and are subject to important risks,
uncertainties and assumptions. In particular, statements about the
proposed Transaction between Cash Store Financial and National Money
Mart Company, including any expected timetable to closing, the receipt
of any court or other approvals, the anticipated outcomes of the
Transaction described above and any other statements about Cash Store
Financial or National Money Mart Company's future expectations, goals,
beliefs or prospect are forward looking information. These statements
are based on our current expectations about our business, and upon
various estimates and assumptions. Significant and reasonably
foreseeable factors that could cause our results to differ materially
from our current expectations, include, but are not limited to, the
inability of Cash Store Financial to obtain court approval or
Competition Bureau approval of the Transition or the inability to
obtain such approvals on the expected terms or schedule, the inability
to obtain any other regulatory approval of the Transaction, the
inability to satisfy any conditions to the completion of the
Transaction, the inability of Cash Store Financial to fulfill the
conditions to funding under any Debtor-in-Possession ("DIP") financing
agreement entered into by Cash Store Financial, any decision of the
Ontario Superior Court of Justice in the CCAA proceedings that is
adverse to Cash Store Financial and other factors that could affect
Cash Store Financial's ability to continue its operations during the
CCAA proceeding, including the factors that are discussed in the
section entitled "Risk Factors" contained in our Annual Information
Form for the year ended September 30, 2013 dated December 11, 2013
filed by The Cash Store Financial with the Canadian securities
commissions (available on SEDAR at http://www.sedar.com), as updated in our most recent Management's Discussion and Analysis
for the three months ended December 31, 2013. The results or events
predicted in these forward-looking statements may differ materially
from actual results or events if known or unknown risks, trends or
uncertainties affect our business, or if our estimates or assumptions
turn out to be inaccurate. As a result, there is no assurance that the
circumstances described in any forward-looking statement will
materialize. Unless required by law, we disclaim any intention or
obligation to update any forward-looking statement even if new
information becomes available, as a result of future events or for any
other reason.
SOURCE The Cash Store Financial Services Inc.
