HURST,
Texas, July 4, 2023 /CNW/ - NextPoint Financial
Inc. ("NextPoint" or the "Company") (TSX: NPF.U)
(TSX: NPF.WT.U) (OTC PINK: NACQF) announces that (i) NPI Holdco
LLC (the "NP Borrower") and LT Holdco, LLC (the "Liberty
Borrower"), which are material subsidiaries of the Company,
entered into a forbearance agreement (the "NP-Liberty
Forbearance Agreement") with their respective principal secured
lenders pursuant to which the lenders have agreed, subject to the
terms and conditions of the NP-Liberty Forbearance Agreement, to
temporarily refrain from enforcing their default-related rights and
remedies under the applicable credit agreement (collectively, the
"NP-Liberty Credit Facility"), and (ii) CTAX Acquisition LLC
(the "CTAX Borrower"), a material subsidiary of the Company,
entered into a forbearance agreement (the "CTAX Forbearance
Agreement", and together with the NP-Liberty Forbearance
Agreement, collectively, the "Forbearance Agreements" and
each a "Forbearance Agreement") with its principal secured
lenders pursuant to which the lenders have agreed, subject to
certain terms and conditions, to temporarily refrain from enforcing
their default-related rights and remedies under each applicable
credit agreement (collectively, the "CTAX Credit
Facilities", and together with the NP-Liberty Credit Facility,
the "Credit Facilities").
(i) Pursuant to each CTAX Credit Facility, the CTAX Borrower is
required to make interest payments on July
1, 2023 or July 15, 2023, the
failure of which will constitute an Event of Default (as defined in
the CTAX Credit Facility), and (ii) pursuant to the NP-Liberty
Credit Facility, each of the NP Borrower and the Liberty Borrower
is required to make interest payments on July 3, 2023, the failure of which will
constitute an Event of Default (as defined in the NP-Credit Credit
Facility). Under the terms of each Forbearance Agreement, the
lenders have agreed to forbear from exercising their
default-related rights and remedies in respect of or arising out of
such Events of Default (as defined in each Credit Facility), as
applicable, until the earlier of (i) July
31, 2023, and (ii) the occurrence of any Default or Event of
Default (as defined in each Credit Facility).
About NextPoint Financial
Inc.
NextPoint is an all-inclusive marketplace for financial services
empowering hardworking and underserved consumers and small
businesses. NextPoint's primary business units are Liberty Tax, a
leading provider of tax preparation services, and Community Tax, an
effective advocate for tax debt resolution on behalf of
customers.
Forward Looking
Statements
This news release contains statements that include
"forward-looking information" (as defined under applicable
securities laws) ("forward-looking statements"). These
forward-looking statements relate to future events or future
performance including with respect to whether the lenders will
continue to forbear from exercising their rights and remedies on
expiry of the Forbearance Agreements and what the terms or timing
of such a transaction or such continued forbearance might be. Such
forward-looking statements reflect management's current beliefs
and are based on information currently available to management. In
some cases, forward-looking statements can be identified by
terminology such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "estimate", "predict", "potential",
"continue", "target", "intend", "could" or the negative of these
terms or other comparable terminology. By their very nature,
forward-looking statements involve inherent risks and
uncertainties, both general and specific, and many factors could
cause actual events or results to differ materially from the
results discussed in the forward-looking statements. In evaluating
forward-looking statements, readers should specifically consider
various factors that may cause actual results to differ materially
from any forward-looking statement. These factors include, but are
not limited to, there being no events of default or breaches of the
Credit Facilities, and the risks and uncertainties discussed in the
section entitled "Risk Factors" in the Company's annual
information form dated January 15,
2023. Forward-looking statements contained in this news
release are not guarantees of future performance and, while
forward-looking statements are based on certain assumptions that
the Company considers reasonable, actual events and results could
differ materially from those expressed or implied by
forward-looking statements made by the Company. Except as may be
expressly required by applicable law, the Company does not
undertake any obligation to update publicly or revise any such
forward-looking statements, whether as a result of new
information, future events or otherwise.
SOURCE NextPoint Financial Inc.