Business Update
Over the last 12 months, elevated inflation levels, supply chain disruption and rapidly rising interest rates have created challenges in the non-prime auto finance market. Inflation resulted in more borrower defaults leading to higher credit loss rates, supply chain issues affected vehicle availability as well as affordability and rising interest rates increased borrowing costs.
Axis has responded to these challenges implementing certain initiatives, including, but not limited to:
- Increased pricing on new originations to compensate for the increase in the cost of borrowing
- Adjust underwriting criteria to reflect elevated credit risks due to inflation
- Streamline operations by exiting certain markets and discontinuing non-performing product lines
- Cut costs through workforce reductions and decreases to executive pay
- Continue to improve operational efficiencies through process automation
Management of Axis is continuously monitoring portfolio and company performance and is committed to additional changes, if required. This process ensures that Axis is well positioned to withstand current macroeconomic challenges and thrive in the future.
Closing of
The Company also announced today that it has completed a private placement financing of
In addition to the Debentures, the Company has issued to subscribers an aggregate of 12,015,000 common share purchase warrants (the "Warrants"), each of which entitles the holder thereof to purchase one common share of the Company (collectively, the "Warrant Shares") at an exercise price of
The Debentures, Warrants and Warrant Shares are subject to a four-month statutory hold period commencing on the date of their issuance. An aggregate of
The Company intends to use the net proceeds from the Private Placement to refinance existing indebtedness.
About
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. In addition, the company continues to grow B2B non-prime auto loan originations by delivering innovative technology solutions and superior service to its Dealer Partner Network. 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 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.
CEO
(416) 633-5626
ir@axisautofinance.com
Source:
2023 GlobeNewswire, Inc., source