The Investment consisted of the issuance by CanaDream to Apollo of 3,286,115 common shares at $0.60 per share of the Corporation and warrants to purchase up to 1,975,816 common shares (the “Warrants”) of the Corporation, for gross proceeds to the Corporation of $1,971,699. The Warrants are exercisable at an exercise price of $0.60 per share.
The term of the Warrants expires on August 30, 2011 (the “Expiry Date”) and one half of the Warrants, being the portion of the Warrants exercisable for 987,908 common shares, hall be exercisable during the period from the closing date to April 30, 2010. During the period from May 1, 2010 to the Expiry Date, and to the extent not previously exercised, all of the Warrants shall be exercisable. In accordance with the policies of the TSX Venture Exchange (the “Exchange”), as the issuance of common shares upon the exercise of the Warrants will result in the creation of a new Control Person (by definition, among other things, being a holder of more than 20% of the issued and outstanding voting shares of an issuer), approval of shareholders holding in aggregate more than 50% of the issued and outstanding common shares (not including any shares held by the Control Person) is required for CanaDream to issue the common shares underlying the Warrants. CanaDream has received written confirmation of support from a sufficient number of shareholders to obtain this requisite level of approval and will submit written approvals received to the Exchange for final approval of the issuance of the common shares underlying the Warrants pursuant to the Investment.
Apollo and its affiliate, Apollo Finance Pty Ltd (“Apollo Finance”), now collectively own an aggregate of 3,912,115 Common Shares, or approximately 19.8% of the then issued and outstanding Common Shares. If Apollo exercises all of the Warrants that are immediately exercisable, Apollo and Apollo Finance will collectively own an aggregate of 4,900,023 Common Shares, or approximately 23.6% of the then outstanding Common Shares. If Apollo exercises all of the Warrants, Apollo and Apollo Finance will collectively own an aggregate of 5,887,931 Common Shares, or approximately 27.1% of the then outstanding Common Shares.
Apollo is purchasing the Common Shares and Warrants for investment purposes and may increase or decrease its equity investment in CanaDream through market transactions, private agreements, treasury issuances, exercise of options, warrants or other convertible securities or otherwise at any time depending on market conditions and any other relevant factors from time to time.
Apollo’s address is 698 Nudgee Road, Northgate (Brisbane), Australia QLD 4013
CanaDream is a Canadian tourism company that is utilizing its proprietary business-to-business web-enabled system, www.canadasbest.com, and its business-to-consumer on-line Internet reservation system, www.canadream.com, to operate and expand its network of RV rental locations in Canada. CanaDream maintains six Company-operated locations in Calgary, Vancouver, Whitehorse, Toronto, Montreal and Halifax. The Company is also leveraging its proprietary technology to build a franchised network of associate dealers that are fully interconnected to CanaDream’s e-commerce systems. CanaDream currently has one associate dealer franchisee in Kelowna.
Apollo is the largest privately owned leisure vehicle operator in the Southern Hemisphere with a fleet of over 3000 vehicles and 300 employees. It has ten branches in Australia, two in New Zealand and three in the USA.
Apollo’s first international expansion was in 2003 when it opened in New Zealand. In 2008. Apollo opened in the USA after acquiring Los Angeles based Happy Travel Campers. Demand was so great that the company opened in Las Vegas and San Francisco, quickly becoming a major force in RV rental.
For further information, please contact:
Brian W. Gronberg
President & CEO
Apollo Motorhome Holidays
Phone: +61 7 3265 9200