Edmonton, Alberta--(Newsfile Corp. - December 9, 2022) - Everyday People Financial Corp. (TSXV: EPF) ("Everyday People" or the "Company"), a Canadian-based financial technology and consumer financing company, is pleased to announce that, further to the news release of the Company dated September 19, 2022, it and its wholly-owned subsidiary, Everyday People Investments Inc. ("Everyday People Investments") have entered into a definitive purchase agreement (the "Purchase Agreement") with the shareholders (the "Shareholders") of General Credit Services Inc. ("General Credit"), one of Canada's premier providers of accounts receivable management services, and General Credit, pursuant to which Everyday People Investments will acquire (the "Acquisition") 100% of the issued and outstanding shares in the capital of General Credit (the "General Credit Shares").
General Credit serves enterprise clients requiring accounts receivable management, collections and bill presentment, and payment management solutions, including banks and other financial institutions, telecom and utility companies, property management and construction firms, governments, healthcare providers, transportation, logistics businesses and more.
Details of the Acquisition
Pursuant to the terms of the Purchase Agreement, Everyday People Investments will acquire the General Credit Shares in exchange for: (i) an aggregate cash payment by Everyday People Investments to the Shareholders on the date of execution of the Purchase Agreement of $100,000, in the form of a non-refundable cash deposit; (ii) an aggregate cash payment by Everyday People Investments to the Shareholders on the closing date of $5,244,455, subject to adjustment in accordance with the terms of the Purchase Agreement; and (iii) the issuance by Everyday People to the Shareholders on the closing date of an aggregate of 1,781,485 common shares in the capital of Everyday People ("Everyday People Shares"). In addition, the Shareholders may earn up to an additional 1,781,485 Everyday People Shares in the aggregate pursuant to the earnout provisions set forth in the Purchase Agreement, which are based on the achievement of certain financial metrics by General Credit in the three-year period following closing of the Acquisition. Further to the news release of the Company dated December 2, 2022, the Company intends to fund the cash payment via advances under the credit arrangements with ATB Financial and EAM Enterprises Inc.
Completion of the Acquisition is subject to conditions customary for transactions of this nature, including, but not limited to, the receipt of all requisite third party and regulatory approvals, including the acceptance of the TSX Venture Exchange. The Acquisition is anticipated to close on or before December 30, 2022.
About Everyday People Financial Corp.
Everyday People is a financial technology and consumer financing company founded on the belief that everyone deserves access to credit, instant payments and the opportunity for homeownership. Through our technology driven ecosystem, our alternative and speciality credit financing programs offer credit and payment cards, prepaid card programs, homeownership facilitation, consumer lending, and payment management services. Our mission is to help our clients be their best financial selves and our goal is to offer the kinds of credit products and services that help everyday people add extraordinary value to their everyday lives. For more information visit: www.everydaypeoplefinancial.com.
Chief Executive Officer
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Cautionary Note Regarding Forward-Looking Statements
This news release includes certain "forward-looking statements" or "forward-looking information" (collectively referred to hereafter as "forward-looking statements") under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the structure and terms of the Acquisition, timing for completion of the Acquisition, timing for receipt of required third party and regulatory approvals, including the acceptance of the TSX Venture Exchange, the ability of the parties to satisfy the conditions of the Acquisition in the required timeframes or at all, the ability of the Company to complete the Acquisition on the terms announced or at all, and the business, plans and operations of the Company. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the timely receipt of all required third party and regulatory approvals, including the acceptance of the TSX Venture Exchange, the inability to satisfy the conditions required to complete the Acquisition, termination of the Purchase Agreement, expectations and assumptions concerning the Company as well as other risks and uncertainties, including those described in the filing statement of the Company dated July 27, 2022, which is available on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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