Axis Provides Update on Strategic Review Process
2024年8月20日 - 8:30PM
Axis Auto Finance Inc. (“Axis” or the “Company”) (TSX: AXIS), a
financial technology company changing the way Canadians purchase
and finance used vehicles, provides a strategic review update.
As indicated in the May 15, 2024, press release,
the Company entered into non-binding letters of intent with two
separate, arms-length parties for potential sales of the auto
finance and equipment finance businesses. Updates on these two
potential sales are provided below.
Equipment Finance Sale
Transaction
On of August 16, 2024, Axis Equipment Finance
Inc. (“Axis Equipment”), a subsidiary within the Axis group of
companies, has executed and closed an asset purchase agreement with
an arms-length party.
The assets sold include intangibles, customer
lists, the assumption of certain vendor contracts and the
transferring of employees to the purchaser.
Concurrent with this transaction, under its two
master purchase and servicing agreements (“MPSA”) that hold its
securitization funding facilities, the servicing of the underlying
customer contracts have been transferred back to the underlying
funders who underwrote the contracts pursuant to the MPSA.
Furthermore, Axis Equipment’s syndicated and serviced portfolios
have been assigned back to their respective purchasers who will
undertake their ongoing collections and servicing.
With the close of this transaction, the Company
intends to liquidate the remaining working capital positions in
Axis Equipment in an orderly manner and dissolve the legal
entity.
Auto Finance Sale
Transaction
As indicated in the May 15, 2024, press release,
Axis has entered into a non-binding letter of intent to sell the
auto finance business. The prospective purchaser has now completed
its due diligence, and an agreement has been reached on the
structure of the sale, and the Company is in the process of
negotiating the definitive agreement in respect of the proposed
transaction.
There can be no assurances that the transaction
to sell the auto finance business will be completed or that a
successful transaction will result from the strategic
process. The Company will provide further updates on the
process as developments warrant.
About Axis Auto Finance
Axis is a fintech lender providing alternative
used vehicle financing options to non-prime borrowers. Axis loans
are offered through over 3,000 automotive dealers nationwide.
Approximately 30% of Canadians (Source: Equifax) that have credit
scores in the non-prime range. All Axis auto loans report to the
credit bureau, resulting in over 70% of customers seeing a
significant improvement of their credit scores. Further information
on the Company can be found at
https://www.axisfinancegroup.com/investors-press-releases/.
The TSX Exchange has neither approved nor
disapproved the contents of this press release. Neither the
Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Axis Auto Finance Inc.Todd Hudson CEO (416)
633-5626ir@axisautofinance.com
Axis Auto Finance (TSX:AXIS)
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