House & Home
House and Home
House and Home 
Wed, December 23, 2009
Tue, December 22, 2009
Abode Mortgage Holdings Corp. Announces Potential Sale of the Company's Mortgage Origination Business
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 22, 2009) - Abode Mortgage Holdings Corp. (TSX VENTURE:ABD) (the "Company") today announces that it has signed a non-binding Letter of Intent with a prospective purchaser for the purchase of its wholly-owned subsidiary, Abode Mortgage Corporation (AMC). AMC ceased operations on November 30, 2009. The terms of the proposed transaction contemplate the sale of AMC to a Toronto-based financial institution in return for a 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 and further payments to the Company over the next 3 years based on a percentage of AMC's cumulative pre-tax profits.
The transaction is conditional on a number of matters, including 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, and arriving at a satisfactory wind down arrangement with AMC's financier.
About Abode Mortgage Holdings Corp.
Abode Mortgage Holdings Corp. is a public company trading on the TSX Venture Exchange under the symbol ABD.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release, and has in no way passed upon the merits of the proposed transaction.