CanaDream Corp., a Calgary, Alberta-based tourism and RV rental firm, announced today (Aug. 25) that it has entered into a binding agreement with Apollo Motorhome Ultimate Holdings Pty Ltd. in connection with an equity investment commitment of $1,971,669.
Apollo is the largest privately owned leisure vehicle operator in the Southern Hemisphere with a fleet of over 3,000 vehicles and 300 employees. It has 10 branches in Australia, two in New Zealand and three in the U.S., in Los Angeles, Las Vegas and San Francisco.
The investment shall consist of the issuance by CanaDream of 3,286,115 common shares of the corporation and warrants to purchase up to 1,975,816 common shares of the corporation for $1,971,699. The warrants are exercisable at an exercise price of 60 cents per share, according to a news release.
CanaDream has received verbal confirmations of support from a sufficient number of shareholders to obtain this requisite level of approval and expects to obtain approval in writing from such parties via written confirmations of consent. If, however, sufficient consent is not obtained via written confirmations, the corporation will seek approval of the investment by way of ordinary resolution at the next annual general and special meeting of shareholders of the corporation in October.
The investment is subject to TSX Venture Exchange approval and is expected to close on or about Sept. 1.
In announcing the investment Brian Gronberg, CanaDream president and CEO, said, “This is an exciting development for CanaDream. By aligning ourselves with Apollo we are joining forces with a company that is a global RV solution. Both companies share a philosophy of exceptional customer service, quality vehicles and competitive rates.”
Luke Trouchet, Apollo CEO, said, “We feel very privileged and honored to have been able to invest in and align ourselves with such a well respected business as CanaDream. Our expansion to Canada answers the call of many travel industry partners who are looking for global RV rental partners.”
CanaDream is a Canadian tourism company that is utilizing its proprietary business-to-business web-enabled system, www.canadasbest.com, and its business-to-consumer online Internet reservation system, www.canadream.com, to operate and expand its network of RV rental locations in Canada.
CanaDream maintains company-operated locations in Calgary, Vancouver, British Columbia, Whitehorse, Yukon Territory, Toronto, Ontario, Montreal, Quebec, and Halifax, Nova Scotia. The company is also leveraging its proprietary technology to build a franchised network of associate dealers that are fully interconnected to CanaDream’s e-commerce systems. CanaDream currently has one associate dealer franchisee in Kelowna.
Apollo’s first international expansion was in 2003 when it opened in New Zealand. In 2008 Apollo opened in the U.S. after acquiring Los Angeles based Happy Travel Campers. Demand was so great that the company opened in Las Vegas and San Francisco.
The Edmonton Sun noted that Apollo could become the largest single shareholder in Calgary-based CanaDream Corp. If Apollo decides to exercise the warrants, it would hold 27.1% of CanaDream’s shares, thereby becoming its single largest shareholder.