MISSISSAUGA, ONTARIO, 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.
- 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/.
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SOURCE Axis Auto Finance Inc.