HURST,
Texas, Oct. 3, 2022 /CNW/ - NextPoint Financial
Inc. (TSX: NPF.U) (TSX: NPF.WT.U) ("NextPoint" or the "Company")
today announced that on September 30,
2022, the Company successfully completed a financial and
organizational restructuring with one of its secured lenders that
provided debt financing to certain special-purpose subsidiaries of
LoanMe, LLC (formerly known as LoanMe, Inc., "LoanMe").
"The restructuring has allowed NextPoint to have a substantially
strengthened capital structure that will support the success and
growth of its Liberty Tax and Community Tax businesses," stated
Brent Turner, the Company's Chief
Executive Officer.
In June 2022, the Company
announced that LoanMe, LLC had ceased all loan originations but
would continue to service outstanding loans that were originated
prior to June 2022. However, due in
part to an unsustainable debt load related to the LoanMe
acquisition and the cessation of LoanMe's operations, the Company
determined to restructure its business to refocus its resources
solely on its Liberty Tax and Community Tax businesses and unwind
its LoanMe business.
About NextPoint Financial
Inc.
NextPoint continues to operate its businesses through Liberty
Tax, a leading provider of tax preparation services, and Community
Tax, an effective advocate for tax debt resolution on behalf of
customers.
Advisors
DLA Piper LLP through its Canadian and US offices acted as legal
counsel to NextPoint. Kirkland & Ellis LLP acted as counsel to
the secured lender.
Forward Looking
Statements
This news release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
Canadian and United States
securities legislation, respectively. All statements, other than
statements of historical fact, included herein are forward-looking
information, including, among others, statements regard the
strength of the capital structure of NextPoint, the benefits of the
restructuring described herein, and the potential removal of the
cease trade order that NextPoint is subject to, and the filing of
the necessary financial statements related thereto. Often,
but not always, forward-looking statements and information can be
identified by the use of words such as "plans", "expects" or
"does not expect", "is expected", "estimates", "intends",
"anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking statements
or information involve known and unknown risks, uncertainties, and
other factors which may cause the actual results, performance or
achievements of NextPoint or its subsidiaries to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements or
information contained in this news release. Risks, uncertainties
and other factors involved with forward-looking information could
cause actual events, results, performance, prospects and
opportunities to differ materially from those expressed or implied
by such forward-looking information, including, but not limited
to the risks disclosed in the Company's Management's Discussion and
Analysis for the three and nine months ended September 30, 2021 and the Company's final
prospectus dated June 3, 2021, in
each case filed with under the Company's profile on
www.sedar.com. Although the Company has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. Although the Company
believes that the assumptions and factors used in preparing the
forward-looking information or forward-looking statements in this
news release are reasonable, undue reliance should not be placed on
such information and no assurance can be given that such events
will occur in the disclosed time frames or at all. The
forward-looking information and forward-looking statements
included in this news release are made as of the date of this
news release and the Company does not undertake any obligation to
publicly update such forward-looking information or
forward-looking statements to reflect new information, subsequent
events or otherwise unless required by applicable securities
laws.
SOURCE NextPoint Financial Inc.