HURST, TEXAS, Nov. 30, 2021 /CNW/ - NextPoint Financial Inc. (TSX: NPF.U) TSX: NPF.WT.U) ("NextPoint") announced today an update on the status of the management cease trade order granted by the Ontario Securities Commission (the "OSC"), as NextPoint's principal regulator, on November 16, 2021 (the "MCTO") under National Policy 12-203 - Management Cease Trade Orders ("NP 12-203"). As announced on November 8, 2021, NextPoint made an application to the OSC for the MCTO in connection with the filing of its interim financial report for the quarter ended September 30, 2021, the related management's discussion and analysis and CEO and CFO certificates (such filings, collectively, the "Required Documents") after the filing deadline of November 15, 2021, as announced (the "Default Announcement")." The management cease trade order prevents the officers named in the order from trading in NextPoint's securities but does not affect the ability of other shareholders, including the public, to trade in securities of NextPoint.
NextPoint is continuing to work to complete the preparation of the additional information and analysis with respect to the business previously operated by LoanMe, Inc. ("LoanMe") required to complete the Required Documents and an auditor's review of such documents at the earliest possible date and currently expects to be in a position to file the Required Documents within 30 days of the original filing deadline. In connection therewith, NextPoint currently anticipates that LoanMe will not achieve the anticipated results of operations for the year ended December 31, 2021 disclosed in the Prospectus dated June 4, 2021. Specifically, lower than anticipated demand for its products impacting originations and brokered mortgage volumes as well as higher than expected unpaid loan balances and operating expenses are expected to adversely affect LoanMe's contribution to the business of NextPoint. The anticipated impact of LoanMe's performance on NextPoint's financial results continues to be analyzed by management and is expected to be addressed more specifically in the press release announcing the financial results for quarter ended September 30, 2021 and the filing of the Required Documents, as well as the related management's discussion and analysis, which will also address the previously disclosed guidance as to NextPoint's anticipated financial results for the year ended December 31, 2021.
NextPoint confirms that other than as set out herein since the date of the Default Announcement: (i) there has been no material change to the information set out in the Default Announcement that has not been generally disclosed; (ii) there has been no failure by NextPoint in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines set out in NP 12-203; (iii) there has not been any other specified default by NextPoint under NP 12-203; and (iv) there is no other material information concerning the affairs of NextPoint that has not been generally disclosed.
NextPoint confirms that it will continue to satisfy the provisions of the alternative information guidelines under NP 12-203 by issuing bi-weekly default status reports in the form of news releases for so long as it remains delayed in meeting the above noted filing requirements.
About NextPoint Financial Inc.
NextPoint Financial Inc. is an all-inclusive marketplace for financial services empowering hardworking and underserved consumers and small businesses. NextPoint Financial Inc. operates through Liberty Tax and LoanMe. Liberty Tax is a tax preparation service with over approximately 2,700 locations that serves approximately 1.6 million consumer and small business clients in the United States and Canada. LoanMe is an online lending platform that has serviced over 340,000 consumer and small business borrowers in the United States.
SOURCE NextPoint Financial Inc.
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