Carbiz Inc. (CBZFF.OB) announced the finalization of a $2.5 million convertible debenture financing with Trafalgar Capital Specialized Investment Fund that will allow Carbiz to strengthen its chain of used car dealerships, maybe eventually across the Florida state line.
Per the deal, Trafalgar purchased $2.5 million secured debentures; $1 million was received upon agreement completion and $750,000 to be received when a registration statement with the United States Securities and Exchange Commission (SEC) is filed. Filing is expected no later than June 30, 2007.
Carbiz also issued Trafalgar warrants to purchase, at an exercise price of $0.15 per share, up to 2.5 million common shares of Carbiz. The deal is part of the company’s growth strategy, as it also recently completed several key business development initiatives to make growing room for its Software and Consulting division.
Mike Downey, business development manager, has finalized a project with Tracker Marine Financial Services. Carbiz will provide online credit applications and loan approvals to “Bass Pro Shop” across the United States beginning in March.
“The completion of this project will significantly reduce costs and increase our efficiency in handling the loan approval process for almost 300 of our dealers. We are optimistic that these additional services will help to increase the number of dealers we work with,” said Downey in a press release.
To enhance new customer growth and product functionality for current clients, the company completed a deal to facilitate the printing of plain paper contracts from the suite of software products that Carbiz offers.
Partnering with Automotive Industry Center for Excellence and the Florida Independent Automotive Dealer Association, Carbiz will combine efforts to offer continuing education classes to automotive dealers in Florida. To assist dealers in purchasing, Carbiz also struck a partnership deal with Allstate Capital to provide financing to automotive dealers for automotive equipment needs.
Shares of Carbiz were trading at 25 cents as of Thursday afternoon
