Axis Announces the Closing of the $15 million Strategic Investment by NowLake Technology, LLC
MISSISSAUGA, ON, Nov. 12, 2021 /CNW/ - Axis Auto Finance Inc. ("Axis" or the "Company") (TSXV: AXIS), a financial technology company changing the way Canadians buy and finance used vehicles, is pleased to announce that it has completed the previously announced strategic investment of $15,000,000 worth of common shares of the Company at a price of $0.50 (the "Offering") by NowLake Technology, LLC ("NowLake"), the fintech parent company of Westlake Technology Holdings and Nowcom Corporation.
NowLake has invested $15,000,000 on a private placement basis and now controls approximately 23% of Axis' issued and outstanding Common Shares. Affiliates of NowLake also hold convertible debentures which, if converted to Common Shares on the date hereof, would result in NowLake and its affiliates controlling an additional approximately 4% of Axis' issued and outstanding Common Shares. Proceeds of the Offering will be used to develop and roll out additional digital loan origination channels as well as general corporate purposes.
The securities issued pursuant to the Offering have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The closing of the Offering is subject to final approval by the TSX Venture Exchange. Please see press release dated October 19, 2021 for more details.
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 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. Through its indirect loan origination channels, Axis continues to provide 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 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.
SOURCE Axis Auto Finance Inc.
Todd Hudson, CEO, (416) 633-5626, [email protected]
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