MISSISSAUGA, ON, October 19, 2021 / CNW / – Axis Auto Finance Inc. (“Axis” or the “Company”), (TSXV: AXIS), a fintech lender serving the alternative auto finance market, announced $ 15 million strategic investment (the “Offer”) by NowLake Technology, LLC (“NowLake”), the fintech parent company of Westlake Technology Holdings and Nowcom Corporation.
- NowLake will purchase 30,000,000 common shares of the Company (“Ordinary actions“) To $ 0.50 per share on the basis of a private placement
- The proceeds of the Offering will be used for the deployment of digital loan origination channels and for general corporate purposes.
- Following the Offering, NowLake is expected to own approximately 23% of the issued and outstanding common shares
- Ian anderson, President of NowLake, appointed to Axis Board of Directors
“Having NowLake as a significant shareholder and partner signals to the market that Axis is a significant player in fintech,” said Todd Hudson, CEO of Ax. “Technology is the engine of our business expansion and we look forward to the deployment of several cutting-edge FinTech initiatives in the near future,” he added.
NowLake and Axis have entered into a share purchase agreement (the “Purchase Agreement”) under which NowLake will invest $ 15,000,000 in a private placement and own approximately 23% of the issued and outstanding common shares of Axis after closing. Proceeds from the Offering will be used to develop and deploy additional digital loan origination channels and for general corporate purposes.
In addition to the Purchase Agreement, NowLake and the Company have entered into an Investment Rights Agreement (the “Investment Rights Agreement”) under which the Board of Directors of Axis will be extended to eight members. at the close of the offer. It is expected that Ian andreson, president of NowLake, will be appointed to the board. In addition, the Investment Rights Agreement grants NowLake certain pre-emptive rights with respect to future offers of shares of the Company as well as registration rights.
“This is the next logical step in our expansion towards Canada,” noted Ian anderson, president of NowLake. “Our partnership has proven to be mutually beneficial and we are delighted to increase NowLake’s stake in Axis,” he added.
The Offer is subject to regulatory and shareholder approval and is expected to close before the end of the year.
About NowLake Technology LLC
NowLake Technology LLC is the fintech parent company of Nowcom, LLC and Westlake Services, LLC. Nowcom, LLC develops technology solutions for the automotive and financial services industries, including Westlake Services, LLC. Westlake Services, LLC provides indirect financing solutions to thousands of auto dealerships across United States, in addition to offering auto refinance, secured loans, and personal loans directly to consumers through LoanCenter.com, Westlake Services, LLC also offers third-party services for medium to large auto, personal and secured loan portfolios. scale of finance companies. , credit unions and investment companies.
About Axis Auto Finance
Axis Auto Finance is a fintech lender providing alternative used vehicle financing options to approximately 30% of Canadians (Source: Equifax) who have credit scores in the non-preferred range. All Axis auto loans are reported to the credit bureau, resulting in over 71% of customers seeing significant improvement in their credit rating. These clients use Axis as a stepping stone in their credit rebuilding process and we are proud to improve the lives of these Canadians. Supported by state-of-the-art risk analysis developed in-house, Axis continues to be from Canada fastest growing publicly traded self-financing company. Further information on the Company is available at https://www.axisfinancegroup.com/investors-press-releases/.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither the Bourse nor its regulatory services provider (as that term is defined in the policies of the Bourse) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Axis Auto Finance Inc.
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