Message #81 From:
Jason Date: June 16, 2008 10:39:45 PM
AAC Stock: Construction Update of Gruv Development
Ableauctions.com Inc. (AMEX:AAC stock) (the “Company”)
announced today that it has established a link to monitor the progress
of construction of its 111 unit condominium project development called
Gruv. Photographs showing work in progress can now be viewed directly on
the Company’s website under the City Gruv
Development pages or directly at www.ableauctions.com/gruv/.
Despite a delay in construction financing, the Company has moved forward
on the development with financial backing of its President and CEO Abdul
Ladha. The conditional funding commitment the Company received from the
Royal Bank of Canada has been delayed for two reasons; a delay in
obtaining a formal legal opinion on the Company’s
ability to secure a loan from a Canadian banking institution and the
awarding of fixed contract agreements with subcontractors in place to
date.
As of May 26, 2008, the Company has obtained the required legal opinion
to the satisfaction of the lender had has tendered and awarded 41% of
the project’s hard construction costs.
Management expects to tender and award the remaining portion of work to
satisfy the lenders criteria within 120 days without compromising its
tender and award process. The Company also expects to finalize a
joint-venture agreement with Overture and its CEO Abdul Ladha in
relation to this and subsequent development projects.
In the interim, the Company’s President and
CEO Abdul Ladha has agreed to provide short-term funding to the Company
in order to meet some critical deadlines and keep the construction
project on schedule.
The current work-in-place on the project is estimated at $1.3 million
CAD. The project is expected to complete in approximately 18 months and
is expected to generate revenue before expenses in excess of $25 million
CAD if the Company is successful in completing the project on schedule
and on budget.
About Ableauctions.com
Ableauctions.com Inc. (AMEX “aac”)
is a high-tech liquidator and on-line auction facilitator that operates
the domains iCollector.com, Naalive.com and Unlimited
Closeouts.com.
As an on-line auction facilitator, the Company, with the experience of
over 3,000 auctions, has developed state-of-the-art technology to
broadcast auctions over the Internet (www.ableauctions.com/technology)
and currently provides the technology and related services to auction
houses, enabling them to broadcast auctions over the Internet. The
Company broadcasts business and industrial auctions over the Internet
for auctioneers and members of the National Auctioneers Association
(NAA) and art, antique and collectible auctions for numerous galleries
and auction houses around the world through eBay Live Auctions.
As a liquidator, the Company, through Unlimited Closeouts, purchases
overstocks, order cancellations and discontinued products from major
manufacturers and importers, then sells the merchandise to major retail
chains, other resellers or the public.
For a comprehensive Corporate Update and prior releases, visit www.ableauctions.com.For more information, contact Investor Relations at investorrelations@ableauctions.com
This press release contains forward-looking statements, particularly as
related to, among other things, the business plans of the Company,
statements relating to goals, plans and projections regarding the
Company's financial position, the Company's business strategy and the
Company’s real estate development project.
The words or phrases "would be," "will allow," "intends to," "may
result," "are expected to," "will continue," "anticipates," "expects,"
"estimate," "project," "indicate," "could," "potentially," "should,"
"believe," "considers" or similar expressions are intended to identify
"forward-looking statements." These forward-looking statements fall
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Act of 1934 and are subject to the safe
harbor created by these sections. Actual results could differ materially
from those projected in the forward-looking statements as a result of a
number of risks and uncertainties. Such forward-looking statements are
based on current expectations, involve known and unknown risks, a
reliance on third parties for information, transactions or orders that
may be cancelled, and other factors that may cause our actual results,
performance or achievements, or developments in our industry, to differ
materially from the anticipated results, performance or achievements
expressed or implied by such forward-looking statements. Factors that
could cause actual results to differ materially from anticipated results
include risks and uncertainties related to the performance of our staff,
management, financing, competition, on-line auction business, our
ability to implement or manage our expansion strategy, general economic
conditions, our ability to license our software to other auction houses,
our ability to acquire profitable companies and integrate them into our
business successfully and other factors that are detailed in our Annual
Report on Form 10-KSB and on documents we file from time-to-time with
the Securities and Exchange Commission. Factors that could cause our
real estate development results to differ materials from anticipated
results include delay experienced during any phase of the project
development (such as in obtaining permits) or unforeseen problems (such
as labor disputes, increasing materials costs, or an inability to obtain
adequate financing). Even if we are able to build the project, the
market for the units we build could decline. We cannot guarantee you
that our building projects will be successful or that we will be able to
recover the money we put into them. If our building projects are
unsuccessful, our business and our cash flow will be materially
adversely affected. Price changes may occur in the market as a whole, or
they may occur in only a particular company, industry, or sector of the
market. Real estate values and mortgage loans can be seriously affected
by factors such as interest rate fluctuations, bank liquidity, the
availability of financing, and by factors such as a zoning change or an
increase in property taxes. Since the majority of our investments are
held in Canadian funds, currency fluctuations may affect the value of
our portfolio significantly. There can be no assurance that the
securities and other assets in which we have invested will increase, or
even maintain, their value. Statements made herein are as of the date of
this press release and should not be relied upon as of any subsequent
date. The Company cautions readers not to place undue reliance on such
statements. The Company does not undertake, and the Company specifically
disclaims any obligation, to update any forward-looking statements to
reflect occurrences, developments, unanticipated events or circumstances
after the date of such statement. Actual results may differ materially
from the Company's expectations and estimates. The Company does not
realize nor book the full revenue of auctions that it facilitates in its
financials, only the net auction fees, that can vary from time-to-time,
that it realizes.
