NextPoint Financial Announces Recognition of Canadian Sale Transaction Order and Approval of Going Concern Sale
HURST, Texas, Dec. 12, 2023 /CNW/ - NextPoint Financial Inc. ("NextPoint" or the "Company") (OTC PINK: NACQQ) today announced that the U.S. bankruptcy court has recognized and given effect to the previously announced order (the "CCAA Order") granted by the Supreme Court of British Columbia on October 31, 2023.
The CCAA Order approved the going concern sale transaction (the "Transaction") under the previously announced transaction agreement entered into on October 27, 2023 (as amended from time to time, the "Transaction Agreement") among the Company, certain of its direct and indirect subsidiaries, and BP Commercial Funding Trust, Series SPL-X (the "Purchaser"). The closing of the Transaction is currently expected to occur on or before December 31, 2023, subject to the satisfaction or waiver of the remaining conditions to closing.
Upon closing of the Transaction, the Community Tax and Liberty Tax business operations will continue in the ordinary course.
As previously announced, on closing, there will be no recovery for the general unsecured creditors of the acquired entities, unless expressly classified as "Assumed Liabilities" under the Transaction Agreement. Liabilities that will not be retained will be transferred to newly formed corporations (the "ResidualCos"), along with excluded assets. The Company expects that there will not be any recoveries available for creditors or equity holders from the ResidualCos.
NextPoint is an all-inclusive marketplace for financial services empowering hardworking and underserved consumers and small businesses. NextPoint's primary business units are Liberty Tax, a leading provider of tax preparation services, and Community Tax, an effective advocate for tax debt resolution on behalf of customers.
This news release contains statements that include "forward-looking information" (as defined under applicable securities laws) ("forward-looking statements"). These forward-looking statements relate to future events or future performance including with respect to the ability to successfully consummate the Transaction and timing thereof, the expectations with respect to the completion of the Transaction and the acquired entities' ability to continue the Community Tax and Liberty Tax business operations. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", "target", "intend", "could" or the negative of these terms or other comparable terminology. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and many factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. In evaluating forward-looking statements, readers should specifically consider various factors that may cause actual results to differ materially from any forward-looking statement. These factors include, but are not limited to, the ability of the acquired entities to continue as a going concern following consummation of the Transaction, the anticipated benefits of the Transaction, and the risks and uncertainties discussed in the section entitled "Risk Factors" in the Company's annual information form dated January 15, 2023. Forward-looking statements contained in this news release are not guarantees of future performance and, while forward-looking statements are based on certain assumptions that the Company considers reasonable, actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company. Except as may be expressly required by applicable law, the Company does not undertake any obligation to update publicly or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE NextPoint Financial Inc.
NextPoint Investor Relations: [email protected], 757-493-8855
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