This month, Canam Credit Company Inc. has made two significant moves, demonstrating the versatility of the company and the foresight of its President and CEO, James White.
On May 3, Canam announced its acquisition of Canada Debt Assistance (CDA) and Canada Credit Services, a wholly-owned subsidiary of Rogers Associate Financial Partners Inc. (RAFP), at a cost of $1.5 million. The move will enable Canam to expand its private lending business into financial assessment and debt consolidation.
According to James White, President and CEO of Canam Credit: "It gives us immediate presence across the country in line with our expansion plans in Canada. This acquisition enables Canam to add another valuable service that complements our money lending businesses."
On May 9, Canam and RAFP, a TSX-Venture Exchange Company (TSXV:RAF) announced their intentions to amalgamate the two companies for the benefit of both. The amalgamation is expected to allow both Canam and RAFP to take advantage of the services offered by each to allow both businesses greater competitiveness and marketing position "This will increase Rogers significantly," says John Rogers, President of RAFP. "It will double our company size and open a lot more opportunities in the financial arenas for both companies. It will be a very good marriage."
White has expressed his own excitement with the purchase of CDA and the merger, projecting $1 million in profits from the merger in the next year.
Canam is a factoring and private lending business, with services in receivable factoring, short-term mortgages, secured business loans and commission advances. RAFP offers services on credit counselling, mortgage refinancing, insurance products and investment strategies. Together the two companies, along with CDA, are positioned to stake a firm claim on the finance market in Alberta, and are set to grow exponentially each month.
Rogers believes that the merger will add a broader spectrum of product lines for both companies, which is really the goal. RAFP will gain scope, adding to its portfolio the prestige of being a lender. Canam will have the opportunity to further develop its services for the ordinary businessman who can't get to first base with the banks.
The move also provides a strong opportunity for access into the public arena, providing Canam with shareholder value and the chance to capitalize on the Toronto Stock Exchange. Canam is pleased and looks forward to finding ways to make use of the vast potential resource the represents.
Rogers admits the merger was a bit of a surprise, coming so fast upon the heels of the CDA announcement, but is optimistic about what the merger promises. At present, RAFP owns four subsidiaries in B.C., Alberta, Manitoba and Ontario. Since its formation in 2002, RAFP has grown to include 16 offices. By joining Canam, Rogers expects further growth.
Presently, the amalgamation is subject to a number of conditions, including the receipt of any and all shareholder, exchange and regulatory approvals. There has been a marked interest in the stock following the announcement.
According to White: "I think this latest development is better than waffles! This merger is an incredible opportunity to provide return and value to our shareholders."
The fast-growing Canam is a flurry of activity, having been in the process of expanding this month already with the CDA acquisition. Here again, Canam expects a wider range of new services, as those of the CDA include debt consulting, credit counselling and money-management counselling.
At present, individual and company debt are growing markets, as all too frequently debtors are forced into the hands of creditors who employ collection agents, lawyers and trustees to get what they want. Debtors facing such a crew can be made to feel deserted, ashamed and helpless.
Canam intends that CDA will continue to apply its expertise in giving clients hope and enforcing their legal rights. Through one-on-one consultations, the company will provide options, assess the structure of their client's assets and define the best course of action to take in the future.
The advantages of CDA programs in the past have enabled many who were without hope to avoid court and pay back 100 per cent of their debts, even improving their credit rating in the process.
Canam looks forward to its new association with CDA and with RAFP. According to White: "With the acquisition of CDA, we've added a whole new strata of savvy managers able to draw upon a vast fund of knowledge and experience."
Both the acquisition of CDA and the merger with RAFP promise to be dovetail fits for Canam, heralding numerous new prosperous ventures to come.
"We're young, we're aggressive and we're energetic," says White, suggesting this probably isn't the last of Canam's enterprises. "We're also experienced, with 10 years spent thriving in a highly competitive marketplace."