April 6, 2022 – Toronto, Ontario – Axis Auto Finance Inc. (“Axis” or the “Company”) (TSXV: AXIS), is pleased to announce that, effective at the opening of trading on April 7, 2022, the Company’s common shares will trade on the Toronto Stock Exchange under the symbol “AXIS”. Effective at the end of trading on April 6, 2022, the Common Shares will be de-listed from the TSX Venture Exchange.
Business Update: Technology driven growth
Axis is a fintech lender changing the way Canadians buy and finance used vehicles. Through its direct-to-consumer (“D2C“) portal, DriveAxis.ca, users can choose their next used vehicle, customize financing terms and get the car delivered – from the comfort of their home. In addition, the Company continues to grow B2B non-prime auto loan originations by delivering innovative technology solutions and superior service to its Dealer Partner Network.
D2C – the future of auto retail
Launched in late 2021, DriveAxis.ca is a fully digital e-commerce solution transforming the used car buying experience. Customers have access to thousands of vehicles, can get instantly approved for financing and have the car delivered, all without leaving their home.
As demonstrated by the US market, digital retail is the next step in the evolution of car buying. Based on the successful launch of the Ontario pilot, Axis expects D2C originated loans to become a significant part of its portfolio going forward.
B2B originations continue to grow
Axis continues to set loan origination records through its coast-to-coast Canadian Dealer Partner network. At the end of 2021, the auto loan portfolio balance was at a record $197M, an increase of 29% year-over-year. Axis expects loan originations to continue to accelerate as Canada exits the remaining COVID restrictions.
Massive, highly fragmented market
Used car retail is a $40+ billion market in Canada with less than 1% e-commerce adoption. With 85% of retail transactions being financed, there are abundant organic growth and tuck-in acquisition opportunities for Axis.
Fiscal strength allows for continued growth
With $6 million in adjusted earnings for fiscal 2021, Axis is a profitable fintech company. The Company’s $120 million revolving borrowing facility provides ample room for portfolio growth and the $15 million equity investment by Westlake Financial completed in November 2021 has further strengthened the balance sheet.
About Axis Auto Finance
Axis is a financial technology company changing the way Canadians buy and finance used vehicles. Through our direct-to-consumer portal, DriveAxis.ca, customers can choose their next used vehicle, arrange financing and get the car delivered to their home. In addition, the company continues to grow B2B non-prime auto loan originations by delivering innovative technology solutions and superior service to its Dealer Partner Network. All Axis auto loans report to Equifax, 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 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.
Todd Hudson, CEO