May 17, 2005
CanaDream Corporation Arranges Additional Credit Facilities
Calgary, Alberta: CanaDream Corporation, (“CanaDream”) is pleased to announce that, with the assistance of Pathpoint Capital Partners, it has arranged additional credit facilities with a major Canadian chartered bank. These facilities include a $16 million revolving demand wholesale lease/rental loan and a $500,000 revolving demand facility. The purpose of the revolving demand wholesale lease/rental loan is to finance the purchase of new rental fleet, while the purpose of the revolving demand facility is to finance general operating requirements and/or letters of credit (“LCs”) or guarantees (“LGs”).
These facilities are in addition to existing fleet financing arrangements which include a $15 million line of credit from a major North American equipment and vehicle financier.
Terms of the new fleet facility include monthly repayments of 1.55% to 2.00% of the original purchase price of units purchased under the facility and interest rates equal to applicable Bankers’ Acceptance (“BA”) rates plus 1.80% per annum. The Company has a one-time option to convert this facility to a fixed rate of interest equal to that bank’s defined “cost of funds” plus 1.80%. The interest rate applicable to borrowings under the revolving operating facility is the Prime rate of interest (“Prime”) plus 1.25% per annum, with specific fees applying to LCs or LGs.
CanaDream is a Canadian tourism company that is utilizing its proprietary business-to-business webenabled 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 now has three associate dealer franchisees in Edmonton Alberta, and Kelowna and Victoria, British Columbia.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that may cause actual results to differ greatly from those forward statements include: market conditions, market demand for the products, present company finances and future requirements and various government and regulatory agency requirements. Additionally, forward looking statements contained in this release may also be affected by competitive products and pricing and the risks associated with product development, marketing, and management of growth and limits on the company’s operating experience.
For further information, please contact:
Mr Brian Gronberg, President & CEO, CanaDream Corporation
Toll Free: 800-461-7638
E-mail: brian@canadream.com
www.canadream.com
