Carfinco Enters into Letter of Intent with respect to the Sale of its US Business

TSX: CFN

EDMONTON, Jan. 22, 2015 /CNW/ - Carfinco Financial Group Inc. ("Carfinco") (TSX: CFN) announces today that it has entered into a non-binding and non-exclusive letter of intent which sets forth the principal transaction terms with respect to the sale of its subsidiary Persian Acceptance Corp. and certain affiliated entities, the disposition of which is a condition of closing the previously announced plan of arrangement (the "Arrangement") with Banco Santander, S.A. ("Santander") (CATS: SAN, NYSE: SAN, BATS-CHIXE: SANE).

"Remaining closing conditions include the sale of our US business and obtaining the regulatory approval from the Bank of Spain." said Tracy Graf, CEO of Carfinco. "Both Carfinco and Santander continue to work diligently towards completing the sale of our US Business and obtaining the applicable approval from the Bank of Spain.  Carfinco remains confident that the Arrangement could be completed within the timelines outlined within the Arrangement Agreement. "

About Carfinco Financial Group Inc.

Carfinco focuses on providing indirect consumer vehicle loans to borrowers unable to obtain financing through traditional lending sources. A network of select independent and franchise dealerships offer Carfinco's payment plans to their customers who must, along with the vehicle, meet Carfinco's underwriting guidelines. The shares of Carfinco trade on The Toronto Stock Exchange under the symbol "CFN".

Caution Regarding Forward-Looking Statements – This news release contains certain forward-looking statements, including statements regarding Carfinco's on-going compliance with the terms of the Arrangement Agreement with Santander, the satisfaction of the conditions set forth therein, and the completion of the transactions contemplated thereby and in the timelines contemplated therein.  These statements are subject to a number of risks and uncertainties.  Actual results may differ materially from results contemplated by the forward-looking statements.  When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements.

SOURCE Carfinco Financial Group Inc.

Mr. Tracy A. Graf, CEO & Director of Carfinco Financial Group Inc., Telephone: [phone], Facsimile: 1-888-486-7456, E-mail: [email protected], Web site: www.carfinco.com