Abode Mortgage has found a “Toronto-based financial institution” to possibly purchase the company.

Abode closed its doors November 30 when it ran into problems funding its mortgages. (See Abode Mortgage…)

In a press release today, the company said:

• “It has signed a non-binding Letter of Intent with a prospective purchaser…”
• If the deal is closed, Abode will receive:
• “Payment to AMC to satisfy immediate working capital requirements”
• “Payments to the Company on or before closing to pay out the Company’s secured creditor and to cover Company expenses.”
• “Further payments to the Company over the next 3 years based on a percentage of AMC’s cumulative pre-tax profits.”
• The transaction hinges on:
• “The parties signing a binding share sale agreement”
• “The proposed purchaser being satisfied with AMC’s Approved Lender status with mortgage default insurers”
• “Obtaining Company shareholder and board approval”
• ”Obtaining TSX Venture Exchange approval”
• ”Arriving at a satisfactory wind down arrangement with AMC’s financier.”

Abode’s stock last traded at one cent on the TSX Venture exchange.

We’ll report additional details as they become available.