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Press Release & News
FOR IMMEDIATE RELEASE
Abode Mortgage Corporation announces C$15 million supplemental credit facility
Vancouver, BC – May 24, 2007 – Abode Mortgage Corporation (TSXV: ABD), a new national non-conforming mortgage lender, announced today that it has established a warehouse margin facility with a leading financial institution. The proceeds of the warehouse margin facility may be pledged towards any approved Asset Based Credit Facility in an aggregate amount of up to C$15 million. Asset Based Credit Facilities may finance either whole loans or subordinate tranches from securitizations of Abode-originated loans. Advances made under the Warehouse Margin Facility will be made directly to any approved Asset Based Credit Facility rather than through Abode.
In consideration of this revolving margin facility, Abode will grant 10 million share purchase warrants entitling the holder to purchase one common share at a price of C$0.17 in the first year and at a price of C$0.195 in the second year. The warrants will be exercisable for a period of two years except that if the volume weighted average trading price of the Company’s shares is C$0.34 or higher for twenty consecutive days on which the shares trade, then at the Company’s election any unexercised warrants will automatically be converted to common shares at the applicable price following notice to the warrant holder. This transaction has been conditionally approved by the TSX Venture Exchange subject to receipt of final documents.
“The Company’s ability to grow business volumes has been significantly enhanced by the availability of this new financing” commented David G. Nelson, Chairman of the Board of Abode Mortgage Corporation. “This margin facility allows us to offer an even broader variety of products and programs to meet the demands of increasingly sophisticated home buyers. It also provides us with greater flexibility in the sale and administration of loans and ancillary products”.
About Abode Mortgage Holdings Corp.
Abode Mortgage Holdings Corp. is a public company trading on the TSX Venture Exchange under the symbol ABD, and through its wholly owned subsidiary, Abode Mortgage Corporation, provides mortgage services to the increasing number of Canadians who are unable to find mortgage financing through traditional sources.
Headquartered in Vancouver, Abode Mortgage Corporation is delivering a new standard of service excellence to the Canadian non-conforming residential mortgage industry by providing simplified products, consistent underwriting decisions, uniformed pricing and competitive compensation programs. The Company launched its lending operations in Western Canada in February, 2007.
Information about Abode Mortgage Corporation is available on the Internet at: www.abodecorp.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information, contact:
Peter J. MacLean
SVP Corporate Development
Abode Mortgage Holdings Corp.
Phone: 604.676.2100
Email: ir@abodecorp.com
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