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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.
