Carbiz Inc. Reports Corporate Developments
SARASOTA, Fla.--March 14, 2005--Carl Ritter, chief executive officer of Carbiz Inc. (TSX VENTURE:CZ) ("Carbiz") or ("the company"), announced the following:OTC Bulletin Board Listing
Carbiz Inc. accountants are continuing the conversion of historical financial statements to comply with U.S. GAAP, which has taken longer than expected. Once the statements are finalized, it is anticipated that it will take a few months to complete the regulatory and filing process for Carbiz to become a reporting issuer under U.S. securities legislation. The company's move to the OTC Bulletin Board should occur in the latter part of the second quarter or in the third quarter of this fiscal year.
As previously announced, during the period leading up to October 12, 2004, convertible debentures with a face value of $1,614,030 gross CDN were issued. These debentures will automatically convert to 7,336,487 Common Shares and 11,004,721 Share Purchase Warrants (the "Original Warrants") on the listing of the Corporation's shares on the OTC Bulletin Board.
Pursuant to the terms of the debentures, 220,095 additional warrants (the "Additional Warrants") will be issued if the listing is not obtained prior to April 10, 2005. These Additional Warrants are equal to 2 percent of the Original Warrants and are issued on conversion of the debentures. Further Additional Warrants equal to 1 percent of the Original Warrants are to be issued on conversion of the debentures for every subsequent 30-day period in which the OTC Bulletin Board listing has not been obtained. No more than 660,283 Additional Warrants (equal to 6 percent of the Original Warrants) may be issued under the debentures.
Carbiz Auto Credit Division
Carbiz will continue expansion of its auto credit division by opening a joint-venture-owned Carbiz Auto Credit Center in May at 4102 North Florida Avenue, in Tampa, Florida. Carbiz recently announced a joint venture agreement to accelerate expansion in the credit center division. It is anticipated that an additional credit center will be opened later in 2005, with more centers planned as cash flow permits. Management is considering a second joint venture to further accelerate growth in the auto credit division.
Q1 Expectations
The auto credit division is expected to deliver a net profit to Carbiz in the first quarter ending April 30, 2005. This profit comes less than one year following the opening of Carbiz's first two wholly owned credit centers. Carbiz also operates software, consulting and tax processing divisions which are on target to generate net operating profits and positive cash flow in the first quarter of 2005.
About Carbiz Inc.
Based in Sarasota, Florida and Toronto, Canada, Carbiz is a leading provider of Internet and software solutions to the North American automotive industry. Carbiz's suite of business solutions includes dealer software products focused on the finance, sub-prime finance and "buy-here, pay-here" markets. Carbiz has 40 full-time employees and provides finance solutions, lead generation, Internet capability, and training services. Carbiz supports more than 3,000 dealers with a recurring revenue model, in addition to its individual product sales. Carbiz also offers a U.S. tax refund service and provides refund anticipation loans through its centralized facility in Clearwater, Florida that employs 90 people on a seasonal basis.
In 2004, Carbiz began leveraging its industry knowledge and software products into company-owned credit centers, which offer financing on used automobiles to customers with low credit scores. Carbiz opened its first two credit centers in Palmetto and St. Petersburg, Florida in 2004. The company intends to open two additional credit centers in Florida in 2005. Each credit center originates, funds, manages and collects loans for vehicles sold to customers.
For more information about Carbiz and its services, visit Carbiz's web site: www.carbiz.com.