Carbiz Inc.

Carbiz Inc.

October 05, 2005 08:12 ET

Carbiz Inc. Announces Convertible Debenture Financing

SARASOTA, FLORIDA--(CCNMatthews - Oct. 5, 2005) - Carl Ritter, chief executive officer of Carbiz Inc. (TSX VENTURE:CZ) ("Carbiz"), announced today that Carbiz has closed a non-brokered convertible debenture financing pursuant to which a total of $809,119 (Cdn), or $690,318 (U.S.), principle amount of debentures were issued. Proceeds from this financing will be used to repay the principle and interest related to certain of the debentures maturing on Oct. 6, 2005. Carbiz also is continuing to work toward listing of its common shares for trading on the United States Over-the-Counter (OTC) Bulletin Board.

Pursuant to the terms of the financing, upon listing on the OTC Bulletin Board and its concurrent delisting from the TSX Venture Exchange, the principle amount of the debentures and all accrued interest will be automatically converted to units of Carbiz at a conversion price of $0.15 (Cdn) per unit. Each unit will consist of one common share, one Class A common share purchase warrant and one-half of one Class B common share purchase warrant. Each whole Class A or Class B purchase warrant may be exercised to acquire one Carbiz common share at a price of $0.15 (Cdn) on or before the date that is five years from the date of issuance of the new debentures.

Certain of Carbiz's debenture holders agreed to an extension of the maturity date of their convertible debentures. Those current debenture holders who have agreed to a 6-month extension of the original maturity date of their debenture will enjoy the same conversion terms as the new debenture holders. All of the new debentures were purchased by insiders of Carbiz.

About Carbiz

Based in Sarasota, Florida, Carbiz is a leading provider of software, training and consulting solutions to the U.S. automotive industry. Carbiz's suite of business solutions includes dealer software products focused on the "buy-here pay-here", sub-prime finance and automotive accounting markets. Carbiz also operates a chain of "buy-here pay-here" dealerships in Florida which are wholly owned and joint venture companies. Carbiz also provides a tax refund service, distributed through automobile dealers across the United States on a seasonal basis. For more information about Carbiz and its services, visit Carbiz's web site:

Forward-Looking Statements

All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of Carbiz. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Carbiz assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Heidi Smith Communications, Inc.
    Heidi Smith
    Media Contact
    (941) 504-2803
    Carbiz Inc.
    Carl Ritter
    Chief Executive Officer
    (941) 952-9255, ext. 1014