Abode Mortgage Holdings Corp.

Abode Mortgage Holdings Corp.

November 27, 2009 10:04 ET

Abode Mortgage Holdings Corp. Announces Sale of the Company's Mortgage Origination Business

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 27, 2009) - Abode Mortgage Holdings Corp. (the "Company") (TSX VENTURE:ABD) today announces that it has entered into an agreement in principle with a private Vancouver-based investment firm for the sale of the Company's mortgage origination business. Under the agreement, the new owner will pay to the Company up to $3.5 million by annual cash installments for the shares of its wholly-owned subsidiary, Abode Mortgage Corporation and related entities, and will recapitalize the business so that operations can be continued on a seamless basis under the new ownership.

The agreement is the culmination of a process undertaken by the Company's board and management to recapitalize the Company. This process has been accelerated by the decision of the Company's financier and whole loan purchaser to withdraw from its existing funding agreement with the Company. The Company has made arrangements for interim funding and mortgage loan purchases, and is in discussions with several financial institutions to provide replacement lending and mortgage purchase facilities.

The completion of the sale is subject to a number of conditions including satisfactory due diligence, execution of a definitive agreement and the Company obtaining shareholder and TSX Venture Exchange approval for the transaction.

In commenting on these developments, the Company's CEO, Mike Linehan, stated: "We are very pleased that the business our employees have built with our industry partners over the last several years will be continued under new ownership. We are confident that this business will have a bright future once it has been adequately and more appropriately capitalized. While we are disappointed that this recapitalization could not occur within the framework of continued ownership by the Company, we are confident that the agreement reached today represents the best option available under the circumstances, including the withdrawal of the Company's current financier. We will work diligently with the new owner to complete the necessary recapitalization of the mortgage origination operations. More information on the transaction will be released upon removal of conditions."

About Abode Mortgage Holdings Corp.

Abode Mortgage Holdings Corp. is a public company trading on the TSX Venture Exchange under the symbol ABD, and through its wholly owned subsidiary, Abode Mortgage Corporation, provides mortgages to Canadians through the Broker Market. Headquartered in Vancouver, Abode Mortgage Corporation is delivering a new standard of service excellence to the Canadian residential mortgage industry by providing simplified products, consistent underwriting decisions, uniform pricing and competitive compensation programs. The Company launched its lending operations in February, 2007.

Information about Abode Mortgage Corporation is available on the Internet at: www.abodecorp.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release, and has in no way passed upon the merits of the proposed transaction.

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