Franchise Services Of North America Inc. (FSNA) announced Sept. 6 that the trading halt on the company’s shares in the TSX Venture Exchange is expected to end on or about Sept. 10.
FSNA also said that Hertz’s completion of carving out Advantage’s financial statements, which is pursuant to the Advantage Purchase Agreement, is not expected until after November. FSNA will need financial statements specific to Advantage in order to incorporate the statements in preparation of the Advantage and FSNA merger.
Following Hertz’s acquisition of Advantage in 2009, no separate financial statements on Advantage have subsequently been released. “As a result, separate carve-out financial statements in respect of Advantage must be created where no such information previously existed,” the release states, adding that Hertz is required to use “commercially reasonable efforts” to provide the information on Advantage.
FSNA said completion of the statements is out of its control and cautioned investors on the lack of financial statements, stating that “there can be no assurance that such financial statements will be satisfactory to FSNA.”
The company also noted that the Advantage merger is still dependent upon the completion of Hertz’s acquisition of Dollar Thrifty, which is still awaiting approval by the Federal Trade Commission and Dollar Thrifty Automotive Group's shareholders.
— By Joanne Tucker