Assistive Financial Corp Commences Legal Action Against The Cash Store
The Cash Store Financial Services Inc.
("Cash Store Financial" or the "Company") (TSX:CSF) (NYSE: CSFS) today
announced that Assistive Financial Corp. ("Assistive") has commenced an
action in the Court of Queens's Bench of Alberta against Cash Store
Financial and certain of its officers and affiliates, including The
Cash Store Australia Holdings Inc. and RTF Financial Holdings Inc. (the
"Affiliates"), seeking repayment of certain funds advanced for the
Affiliates by Assistive. The claim seeks, among other things, damages
equivalent to $110,000,000, together with interest thereon at the rate
of 17.5% per year.
Cash Store Financial believes the action is wholly without merit and
intends to vigorously defend itself. The Company maintains that it is
not in default of any contractual obligations to Assistive and that
this development is not expected to materially impact the financial
position or results of operations of Cash Store Financial.