MISSISSAUGA, ON, Oct. 19, 2021 /CNW/ - Axis Auto Finance Inc.
("Axis" or the "Company"), (TSXV: AXIS) a fintech lender servicing
the alternative auto finance market, announced a $15 million strategic investment (the "Offering")
by NowLake Technology, LLC ("NowLake"), the fintech parent company
of Westlake Technology Holdings and Nowcom Corporation.
HIGHLIGHTS
- NowLake to purchase 30,000,000 common shares of the Company
("Common Shares") at $0.50 per
share on a private placement basis
- Proceeds of the Offering to be used for the roll-out of digital
loan origination channels and 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, to be appointed to the Axis Board of Directors
"Having NowLake as large shareholder and partner signals to the
market that Axis is a significant fintech player," said
Todd Hudson, CEO of Axis.
"Technology is driving the expansion of our business and we look
forward to the roll out of several leading-edge fintech initiatives
in the near future", he added.
NowLake and Axis have entered into a share purchase agreement
(the "Purchase Agreement") pursuant to which NowLake will invest
$15,000,000 on a private placement
basis and own approximately 23% of Axis' issued and outstanding
Common Shares post-closing. Proceeds of the Offering will be
used for to develop and roll out additional digital loan
origination channels, and general corporate purposes.
In addition to the Purchase Agreement, NowLake and the Company
entered into an investment rights agreement (the "Investment Rights
Agreement") pursuant to which the Axis Board of Directors will be
expanded to eight members on closing of the Offering. It is
anticipated that Ian Andreson,
President of NowLake, will be appointed to the Board. In
addition, the Investment Rights Agreement provides NowLake with
certain pre-emptive rights in respect of future equity offerings of
the Company as well as registration rights.
"This is the logical next step in our expansion into
Canada," said Ian Anderson, President of NowLake. "Our
partnership has proven to be mutually beneficial, and we are
excited to grow NowLake's ownership stake in Axis," he added.
The Offering 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
sectors, including Westlake Services, LLC. Westlake Services,
LLC provides indirect financing solutions to thousands of
automotive dealers throughout the United
States, as well as offering auto loan refinancing, secured
loans, and personal loans direct to consumer through
LoanCenter.com, Westlake Services, LLC also offers third-party
servicing for medium to large scale automotive, personal loan, and
secured loan portfolios from finance companies, credit unions, and
investments companies.
About Axis Auto Finance
Axis Auto Finance is a fintech lender providing alternative used
vehicle financing options to roughly 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 71% of
customers seeing a significant improvement of their credit scores.
These clients use Axis as a stepping-stone in their credit
rebuilding journey and we are proud to be improving the lives of
these Canadians. Supported by state-of-the-art, in-house developed
risk analytics, Axis continues to be Canada's fastest-growing publicly traded
auto-financing company. Further information on the Company can be
found 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 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.
SOURCE Axis Auto Finance Inc.