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
pursuing a tax
ruling to allow shareholders who are residents of Canada to
Inc. shares tax free.
For every share of Rentcash, shareholders
one share of Insta-rent Inc. on a one-for-one basis. The value
shares will be determined through a valuation process currently
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
division to function efficiently as a stand-alone company. "Store
reduced, expenses were cut, store operating margins improved and
reduced," Johnson said. "Although still operating in a minor loss position, the
division is now well-positioned to operate as a separate
Once the spin-off is complete, Rentcash, will change its name to The Cash Store
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.
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