September 4, 2019 – Mississauga, Ontario – Axis Auto Finance Inc. (“Axis” or the “Company”)
(TSXV: AXIS) is pleased to announce a strategic partnership with Westlake Financial Services
(“Westlake”) and Nowcom Corporation (“Nowcom”) which will now enable Axis to offer its
best-in-class financing solutions to Canadians across the entire non-prime credit spectrum.
Highlights:
• Westlake and Nowcom will invest up to US$5 million into Axis on a private placement
basis
• This partnership allows Axis to extend its product offering to cover the entire non-prime
credit market in Canada
“We are very excited about our expansion into Canada and partnership with Axis,” said Ian Anderson, Group President of Westlake Technology Holdings. “The Canadian auto finance market is very similar to the United States and offers tremendous opportunities for Westlake and Axis to help auto dealers finance more customers. We look forward to growing the business together.”
Axis will originate and service loans to near prime customers in Canada on behalf of Westlake.
The loans will be originated under the Axis brand and profits will be shared between the parties.
Nowcom will provide its leading-edge technology, DealerCenter and CarZing, to enhance communication and improve origination efficiency for auto dealers working with Axis.
“This partnership greatly enhances our leading position in the Canadian non-prime automotive finance sector and provides Westlake and Axis the opportunity to symbiotically grow our respective businesses”, said Todd Hudson, CEO of Axis. “We look forward to a long, ever expanding and mutually prosperous relationship between our two companies,” he added. Westlake will invest up to US$5 million into Axis on a private placement basis, by way of convertible unsecured subordinated debentures (the “Debentures”). The Company has the ability to draw on the US$5 million on an as-needed basis, with the first US$2 million expected to close on or about September 9, 2019. The Debentures will have a maturity date of June 30, 2023 (the “Maturity Date”) and carry an interest rate of 7.5% per annum. Each Debenture will be convertible at the option of the holder at any time prior to the Maturity Date at a conversion price of $0.45 per share (subject to approval by the TSX Venture Exchange). Further details regarding the terms of the Debentures will be available following the closing under the Company’s profile on www.sedar.com.
The Debenture private placement is subject to standard and customary closing conditions including the receipt of regulatory approval. The Company will use the net proceeds of the Debentures for working capital purposes.
INFOR Financial Inc. acted as the exclusive financial advisor to Axis in connection with the private placement.
About Westlake Technology Holdings
Westlake Technology Holdings is an auto and finance technology company headquartered in Los Angeles, CA with approximately US$9.8 billion in assets under management. Westlake Financial Services originates indirect automotive retail installment contracts through a nationwide network of new and used automotive and powersports dealers. Westlake also offers loan portfolio purchasing, credit facilities and portfolio servicing through their ALPS division (Advanced Lending & Portfolio Services); www.WestlakeALPS.com. Floor plan lines of credit are provided through their Westlake Flooring Services division, www.WestlakeFlooringServices.com, shared cash flow auto lending through Westlake’s wholly owned subsidiary, Western Funding Inc., a Nevada based auto lender, and indirect automotive leasing for credit unions through Westlake subsidiary, Credit Union Leasing of America (CULA). Dealer leads and direct-to-consumer auto loans are offered through Westlake Direct. Consumer title loans are offered through Westlake’s wholly owned subsidiary Loan Center, www.loancenter.com.
About Nowcom
Nowcom Corporation is a technology company developing technology solutions for the automotive and financial services verticals. Nowcom is one of seven companies within The Hankey Group (US$10 billion in assets) and based in Los Angeles, CA. Nowcom not only provides technology for all the Hankey group of companies including Westlake but also provides industry leading software to auto dealerships through its flagship product DealerCenter (Dealer Management System) and patented IMaxx technology. Nowcom also developed first-of-its-kind, fully automated finance decision websites like Carzing.com and powers up dealers’ websites in the country with the same finance engine like BuyMcar.com. Nowcom has vast experience and the right resources to bring products from ideation to market quickly and efficiently.
About Axis Auto Finance
Axis Auto Finance is a leading Canadian provider of alternative used vehicle financing options servicing roughly 30% of Canadians (Source: Equifax) that have credit scores in the non-prime range. 100% of all Axis auto loans report to the credit bureau, resulting in a significant improvement of the credit scores for the overwhelming majority of clients. 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 investors.axisautofinance.ca.
Axis Auto Finance Inc.
Ilja Troitschanski
President (416) 633-5626
ir@axisautofinance.com
Forward-Looking Statements
This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Information and statements which are not purely historical fact are forward-looking statements. The forward-looking statements in this press release relate to comments that include, but are not limited to, the completion of the Debenture financing and the use of proceeds therefrom and the development of the strategic partnership with Westlake and its operations. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
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.