Carbiz Inc. Announces Joint Venture.SARASOTA, Fla. -- Carl Ritter Carl Ritter (August 7, 1779 – September 28, 1859) was a German geographer. Along with Alexander von Humboldt, he is considered one of the founders of modern geography. From 1825 until his death, he occupied the first chair in geography at the University of Berlin. , chief executive officer of Carbiz Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:CZ) ("Carbiz"), announced that Carbiz has entered into a joint venture agreement to accelerate its previously announced expansion into the auto credit business. The joint venture agreement proposes to add one Carbiz Auto Credit Center in Florida in May and four additional credit centers as cash flow permits. Carbiz remains committed to opening additional wholly-owned corporate credit centers but will also launch joint venture credit centers to protect the company's cash position while maximizing operational capacity. The innovative, joint venture strategy will strengthen the Carbiz balance sheet immediately, accelerate growth, reduce risk and protect shareholder value by expanding more rapidly without dilution. The joint venture will be funded entirely by the joint venture partner, who is a member of the Carbiz Board of Directors, through a $500,000 US investment for 50 percent of the capital stock of the joint venture company. Carbiz will retain a 50 percent equity position in the joint venture company by contributing intellectual property and permanent, non-exclusive license agreements. The joint venture company's objective is to open five credit centers in addition to Carbiz's corporate stores over the next five years. At the completion of this strategy, the joint venture company plans to implement a dividend policy for distribution of earnings, on an equivalent basis, to the joint venture shareholders. Carbiz will consider executing one additional joint venture in 2005. "The joint venture in the Carbiz Auto Credit Center division is a solid business move for the company as we continue to execute our expansion strategy," said Carbiz President Richard Lye. "This innovative approach enhances opportunities to increase revenues and drive earnings from our auto credit division while minimizing risk." About Carbiz Inc. Based in Sarasota, Florida Sarasota is a city located in Sarasota County on the central west coast of Florida, USA. Its official limits include Sarasota Bay and several barrier islands between the bay and the Gulf of Mexico. and Toronto, Canada, Carbiz is a leading provider of Internet and software solutions to the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. . 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 individual product sales. Carbiz also offers a U.S. tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. service and provides refund anticipation loans A (Tax) Refund Anticipation Loan (RAL) is a high interest rate short-term loan secured by a taxpayer’s expected tax refund. United States In the United States, the taxpayer commonly applies for the loan through a paid tax preparation firm. through it centralized facility in Clearwater, Florida Clearwater is a city located in central Pinellas County, Florida, USA, nearly due west of Tampa. As of the 2000 census, the city had a total population of 108,787; however, according to the 2005 U.S. Census Bureau's estimates, the city's population fell slightly to 108,687. 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 poor credit. Carbiz opened its first two credit centers in Palmetto palmetto or cabbage palmetto Tree (Sabal palmetto) of the palm family, occurring in the southeastern U.S. and the West Indies. Commonly grown for shade and as ornamentals along avenues, palmettos grow to about 80 ft (24 m) tall and have fan-shaped leaves. and St. Petersburg, Florida St. Petersburg (often shortened to St. Pete) is a city in Pinellas County, Florida, United States. The city is known as a vacation destination for North American and European vacationers, as well as a politically important battleground in U.S. Presidential politics. 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. 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 plans and objectives of Carbiz. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Carbiz assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Carbiz Inc. (TSX VENTURE:CZ) |
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