Science & Technology
Science and Technology
Science and Technology
Fri, June 19, 2009
Thu, June 18, 2009
CarBiz Inc.: CarBiz Inc. Announces Acquisition of Star Financial
SARASOTA, FLORIDA--(Marketwire - June 18, 2009) - In a move that expanded its role in the Buy-Here Pay-Here industry, CarBiz Inc. (OTCBB:CBZFF) announced the acquisition of the Star Financial Services portfolio of consumer notes.
Since 1966, Star Financial has served as an indirect lender to the auto finance industry in Southern California. This strategic acquisition will add more than $10 million to CarBiz's consumer loans portfolio. CarBiz financed the transaction by entering into a $20 million credit facility with Wells Fargo Preferred Capital.
Emphasizing the acquisition's impact to the company's growth, CarBiz CEO Carl Ritter stated, "The addition of this portfolio will augment our current collection team in Sarasota and the new credit facility with Wells Fargo should provide CarBiz with a stable financial platform to move forward this year."
Full details of the acquisition and financing are available in the 8-K of CarBiz that was filed on June 17, 2009.
About CarBiz Inc.
Leveraging two decades of industry experience, CarBiz operates 25 Buy-Here Pay-Here (BHPH) credit centers throughout the United States. The company also provides training, consulting, performance groups and management services for dealers seeking to improve their BHPH programs. Recently, CarBiz implemented a Lease-Here Pay-Here service to help dealerships expand their product portfolios.
Forward-Looking Statements
All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future growth plans and objectives of CarBiz. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any of our future results or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to the following: (i) whether we are successful in implementing our business strategy; (ii) our ability to increase revenues in the future and to continue as a going concern; (iii) our ability to obtain additional financing on terms favorable to us, if at all, if our operating revenues fail to increase; (iv) our ability to attract and retain key personnel; (v) the impact on the market price of our common shares of the concentration of common share ownership by our directors, officers and greater than 5% shareholders, which may delay, deter or prevent actions that would result in a change of control; (vi) the significant fluctuation of the market price of our common shares; (vii) costly difficulties we may face in the assimilation of the operations, technologies and products of companies that we may acquire in the future; (viii) the adequacy of our insurance coverage to cover all losses or liabilities that may be incurred in our operations; (ix) our dividend policy; (x) the impact on our financial position, liquidity and results of operations if we underestimate the default risk of sub-prime borrowers; (xi) general economic conditions; (xii) general competition; (xiii) our ability to comply with federal and state government regulations; (xiv) potential infringement by us of third parties' proprietary rights; (xv) defects in our products; (xvi) our compliance with privacy laws; (xvii) our ability to obtain adequate remedies in the event that our intellectual property rights are violated; (xviii) our ability to develop and market on a timely and cost-effective basis new products that meet changing market conditions, and (xix) the risk factors identified in our most recent Annual Report on Form 10-K, including factors identified under the headings "Description of Business," "Risk Factors" and "Management's Discussion and Analysis or Plan of Operation." Although we believe that expectations reflected in these forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or other future events. Moreover, neither we nor anyone else assumes responsibility for the accuracy and completeness of these forward-looking statements. We are under no duty to update any of these forward-looking statements. You should not place undue reliance on these forward-looking statements.
