NextPoint Financial Completes Going Concern Sale Transaction
HURST, Texas, Jan. 2, 2024 /CNW/ - NextPoint Financial Inc. ("NextPoint" or the "Company") (OTC PINK: NACQQ) today announced that it has closed its previously announced going concern sale transaction to BP Commercial Funding Trust, Series SPL-X, completed in connection with the Company's proceedings under the Companies' Creditors Arrangement Act (Canada) and chapter 15 of the United States Bankruptcy Code. NextPoint's primary business lines, Liberty Tax and Community Tax, emerge from the process with a new ownership group and strengthened balance sheet.
Under the new ownership, Community Tax and Liberty Tax will continue to provide high-quality services and value to their customers.
In connection with the completion of the transaction, it is expected that the Company and its direct and indirect subsidiaries that were not acquired in the sale, including the LoanMe group of companies, will be wound down, following which the Company will no longer be a reporting issuer in Canada and its common shares will cease trading on the OTC Pink Sheets.
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 anticipated wind down of the Company and its direct and indirect subsidiaries that were not acquired in the sale, the Company ceasing to be a reporting issuer, the withdrawal of the common shares from the OTC Pink Sheets 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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