SOURCE: Forum National Investments Ltd.

November 02, 2007 15:26 ET

Forum National Investments Acquires Assets of Family Vacation Centers to Become Largest Wholesale Travel Club in Canada

VANCOUVER, BC--(Marketwire - November 2, 2007) - Forum National Investments Ltd. (FNI) (PINKSHEETS: FMNLF) today announced that it had entered into an agreement to purchase all of the assets of Family Vacation Centers Ltd., a Burlington, Ontario based travel club, for Cdn.$4,000,000.

The terms of the agreement call for a $1,000,000 initial payment, which has been made, and two payments of $500,000 in three and six months, respectively. These future cash payments may be made in cash or via the issuance of an aggregate of 200,000 restricted shares of the FNI's common stock, at the seller's option. The balance of the acquisition price, $2,000,000, will be paid via the issuance of 400,000 shares of restricted FNI common stock.

Family Vacation Centers was founded in 2002 and is one of the largest travel clubs in Canada with approximately 5,000 family memberships. Apart from its corporate headquarters in Burlington, the company has three other offices in Ontario in London, Windsor and Kitchener. The company has approximately 70 employees.

"This acquisition will make Forum National Investments the largest wholesale travel club operator in Canada with approximately 13,000 family memberships," said Dan Clozza, President and CEO, FNI. "As we combine our operations, we expect to enjoy significant economies of scale which will result in enhanced profitability on an estimated $8,000,000 in 2008 revenues."

Mr. Clozza went on to add, "The recent strength in the Canadian dollar has had a beneficial effect on our travel club business as Canadians are now traveling more to the United States and other destinations to take advantage of lower cost vacations, thanks to a stronger Canadian dollar. As a result of this trend, family membership travel club sales have increased by approximately 20% over the past two months."

The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although Forum believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors, including general economic conditions, spending levels and other factors could cause actual results to differ materially from Forum's expectations.

Contact Information

  • For further information contact:
    Dan Clozza