TORONTO, Aug. 20, 2024 (GLOBE NEWSWIRE) -- 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) 633-5626
ir@axisautofinance.com
