TORONTO--(BUSINESS WIRE)--Axis Auto Finance Inc. ("Axis" or the "Company") (TSX: AXIS), today announced that further to its press releases dated October 21, 2024, November 9, 2024 and December 6, 2024, the Company and its operating subsidiaries involved in the Company's auto finance business have completed the previously announced sale of the auto loan assets and undertaking of Axis (the "Transaction"). The purchase price for the assets was approximately $78,000,000 (after taking into account adjustments for changes in the composition of the auto loans assets and fair market value of inventory since December 31, 2023, but before reducing for $2,500,000 which was held back by the purchasers on closing).
The Company used a portion of the proceeds to repay 100% of its outstanding senior indebtedness and will use a portion to fund the first redemption payment for its unsecured convertible debentures. The Company expects to fund the balance of the redemption payments for the unsecured convertible debentures from the portion of the $2,500,000 which was held back by the purchasers on closing and an expected refund from Canada Revenue Agency for excise taxes. The Company will issue further press releases as these amounts are received and paid out.
The Company confirms that the redemption date for the redemption of debentures set forth in its press release dated December 6, 2024 remains December 16, 2024.
As set forth in the Company's management information circular dated October 30, 2024 in respect of the annual and special meeting of shareholders held on November 29, 2024 to, among other things, approve the Transaction, after repayment of outstanding creditors it is not anticipated that there will be any funds remaining to distribute to the Company's shareholders.
As the Company has no remaining active business and few remaining assets it is anticipated that the Toronto Stock Exchange will forthwith commence with the process to delist the Company's common shares.
About Axis Auto Finance
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.
Notice Regarding Forward-Looking Statements
This news release contains forward-looking information and forward-looking statements (collectively, "forward-looking statements") within the meaning of applicable securities laws, regarding the Company's business and operations. In this news release, forward-looking statements relate to, among other things, information regarding expectations regarding the consideration to be paid to holders of the Company's debentures; the receipt of some portion of the hold back amount and a refund for excise taxes, the ability to make distributions to shareholders, and the timing of the delisting of the Company's common shares.
Forward-looking statements are necessarily based on a number of estimates and assumptions that the Company considered appropriate and reasonable as of the date such information is given, including but not limited to the assumptions that the Company will receive the funds necessary to fund the remaining redemption payments to the holders of the Company's debentures and the funds remaining after repayment of creditors. Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors, many of which are beyond the Company's control, that may cause actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the risk that the Company's assumptions on which its forward-looking statements are based may not be accurate; and the risk factors disclosed in the Company's periodic reports publicly filed and available on its SEDAR+ profile at www.sedarplus.ca. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur. The forward-looking statements contained in this news release are made as of the date of this announcement and the Company does not undertake any obligation to update such forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Contacts
For further information:
Axis Auto Finance Inc.
Todd Hudson
CEO
(416) 633-5626
ir@axisautofinance.com
