Although still operating in a minor loss position, the rental division is now well-positioned to operate as a separate company.
Bill Johnson, President and Chief Operating Officer, Insta-rent

Shareholders of Canadian rent-to-own and payday loan company Rentcash approved the spin-off of Insta-Rent, the company's rental division, into a separate publicly traded company. Approval was received at the Rentcash 2007 Annual Meeting held Wednesday in Edmonton.

Gordon Reykdal, Chairman and Chief Executive Officer said he expects the spin-off to occur in the third quarter of fiscal 2008, after a ruling has been received from the Canada Revenue Agency. The company is pursuing a tax ruling to allow shareholders who are residents of Canada to receive Insta-rent Inc. shares tax free.

For every share of Rentcash, shareholders will receive one share of Insta-rent Inc. on a one-for-one basis. The value of Insta-rent shares will be determined through a valuation process currently being performed by Deloitte & Touche.

"We believe that the divestiture will provide better clarity for both business models and have a positive long-term impact on shareholder value," said Reykdal.

Bill Johnson, President and Chief Operating Officer of Insta-rent said the company spent the past year preparing the rental division to function efficiently as a stand-alone company. "Store count was reduced, expenses were cut, store operating margins improved and losses reduced," Johnson said. "Although still operating in a minor loss position, the rental division is now well-positioned to operate as a separate company."

Once the spin-off is complete, Rentcash, will change its name to The Cash Store Financial Services Inc. The spin-off must still be approved by regulatory authorities.

Rentcash currently operates 421 stores under three banners;The Cash Store, Instaloans and Insta-rent.and employs 1,800 associates.