The Investment shall consist of the issuance by CanaDream 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 is for a period of twenty-four months from the closing date (the “Expiry Date”) and one half of the Warrants, being the portion of the Warrants exercisable for 987,908 common shares, shall 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 verbal confirmations of support from a sufficient number of shareholders to obtain this requisite level of approval and expects to obtain approval in writing from such parties via written confirmations of consent. If, however, sufficient consent is not obtained via written confirmations the Corporation will seek approval of the Investment by way of ordinary resolution at the next annual general and special meeting of shareholders of the Corporation (expected to be held in October, 2009) or any adjournments or postponements thereof.
The Investment is subject to Exchange approval and is expected to close on or about September 1, 2009.
In announcing the Investment Mr. Brian Gronberg, the President & CEO of CanaDream, said “This is an exciting development for CanaDream. By aligning ourselves with Apollo we are joining forces with a company that is a global RV solution. Both companies share a philosophy of exceptional customer service, quality vehicles and competitive rates.”
Mr. Luke Trouchet, the CEO of Apollo, said “We feel very privileged and honoured to have been able to invest in and align ourselves with such a well respected business as CanaDream. Our expansion to Canada answers the call of many travel industry partners who are looking for global RV rental partners."
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.
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