December 6, 2024 – Toronto, Ontario – Axis Auto Finance Inc. (“Axis” or the “Company”)
(TSX: AXIS), is pleased to announce that, pursuant to the terms of the indenture governing the
Company’s 7.5% Extendible Unsecured Convertible Subordinated Debentures issued in April
2018 (the “Debentures”), it has set December 16, 2024 as the redemption date for the Debentures
(the “Redemption Date”). The Redemption Date has been set in anticipation of the Company
closing its previously announced sale of the auto loan assets and undertaking of Axis to Fionic
Canada Ltd. (“Fionic”) and an affiliate of Fionic on or about December 12, 2024 (the
“Transaction”).
All of the outstanding Debentures are to be redeemed and under the terms of the indenture the
Company is obligated to pay the redemption payment in up to three installments. The first
installment will be an amount equal to the outstanding interest up to but excluding the Redemption
Date as well as 60% of the outstanding principal amount. Based on a redemption date of December
16, 2024, the first installment will be $11,147,906.25 (comprised of $10,530,000.00 of principal
and $617,906.25 of interest). The second installment, which will be equal to at least 12% of the
principal amount outstanding as of the Redemption Date, will be paid following receipt of a
holdback payment payable pursuant to the Transaction. The third and final installment is to be paid
following receipt by the Company of an amount owing to the Company by Canada Revenue
Agency. Pursuant to the indenture, the principal portion of the redemption payment is to be not
less than 80% nor more than 85% of the principal amount outstanding as of the Redemption Date.
The completion of the redemption is conditional on the closing of the Transaction. The
Corporation will reconfirm the Redemption Date in the press release that announces the closing of
the Transaction and if the Redemption Date needs to be delayed a revised redemption notice will
be provided and a further press release issued.
A copy of the redemption notice will be filed under the Company’s profile on www.sedarplus.ca
and on the Company’s website www.axisfinancegroup.com.
Update on Delisting
As disclosed in the information circular provided to shareholders in connection with the annual
and special meeting of shareholders held on November 29, 2024, it is anticipated that the
Company’s common shares will be delisted from the Toronto Stock Exchange shortly following
the closing of the Transaction. We will provide additional updates with respect to the timing of
the delisting once they are available.
À Propos d’Axis Auto Finance
Axis is a fintech lender providing alternative used vehicle financing options to non-prime
borrowers. Axis loans are offered through automotive dealers to 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 creditscores. 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 the closing of the Transaction and the
redemption of the Debentures.
Forward-looking statements are necessarily based on a number of 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 Transaction will proceed according to the Company’s
anticipated timelines. 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;
the inability to receive, in a timely manner and on satisfactory terms, the necessary approvals for
the Transaction; the inability to satisfy, in a timely manner, all other conditions to the completion
of the Transaction; 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. There is no
assurance that the Transaction will be completed in accordance with its terms or at all.
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.
For further information:
Axis Auto Finance Inc.
Todd Hudson
CEO
(416) 633-5626
ir@axisautofinance.com