TrustMark Auto Group, Inc.
CNSX : TAF

TrustMark Auto Group, Inc.

April 07, 2009 14:46 ET

TrustMark Reports on a Number of Significant Items Impacting TrustMark's Ability to Implement Its Business Model

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 7, 2009) - Rod Hamilton, Chairman of TrustMark Auto Group, Inc. ("TrustMark" or the "Company") (CNSX:TAF), reports on a number of items resulting from continuing losses and the Company's inability to raise additional capital.

March 31, 2009 Interest Payment due on Series "A" Debentures

As a result of continuing losses and the Company's current operating cash position, the Board of Directors has determined that the Company is not in a position to pay the March 31, 2009 interest payment due on the Series "A" Debentures (the "Debentures") and is seeking an extension of that interest payment from the holders of the Debentures (the "Debenture Holders") until June 30th, 2009.

In the event that the Debenture Holders do not agree to the extension, the company will be in default.

Results of the March 31, 2009 extension request should be known by April 30, 2009.

Resignation of Directors

As noted in the Feb. 25, 2009 Press Release and the March 10, 2009 Press Release, two Directors (Eric Turcotte and Monty Qureshi) have resigned from the Board of Directors of TrustMark Auto Group, Inc.

The Company is seeking to fill both of these "Independent" Director positions, but under the current economic conditions is finding it difficult to do so.

On-Line Media Program

As described in the past three monthly Form 7 CNSX filings, TrustMark has now focused its attention on developing an On-Line Media Program to be sold to both new and used Canadian auto dealers.

The current On-Line Media Program is "powered" by software owned and controlled by a third party. The Company has concluded that this software has certain limitations and costs, which make the current version of the On-Line Media Program un-scalable.

The Company has now completed the initial testing of its own proprietary software to power the 0n-Line Media Program and it is expected that by April 15, 2009 this improved program will be fully introduced to all twenty-two TrustMark dealers currently signed onto the On-Line Media Program.

Once all 22 dealers have been converted to the new proprietary program, TrustMark will monitor the results, and if positive, will begin to sell the TrustMark ON-Line Media Program to other auto dealers.

TrustMark has very limited available capital to implement the launch of the On-Line Media Program and as such may not be able to effectively roll it out.

TrustMark provides products and services to Canada's auto dealers.

ON BEHALF OF THE BOARD

Rodney J. Hamilton, Chairman

Contact Information

  • TrustMark Auto Group, Inc.
    Rodney J. Hamilton
    Chairman
    (604) 628-1344
    (604) 628-1343 (FAX)
    Website: www.trustmarkauto.com