CHICAGO,
IL and HURST, TX, Dec. 31,
2021 /CNW/ - NextPoint Financial Inc. (TSX: NPF.U) (OTC
Pink: NACQF), ("NextPoint" or the "Company"), an
all-inclusive financial services destination providing tax
services, loans and other solutions for underserved consumers and
small businesses, announced today that it has completed the
acquisition of Chicago-based
Community Tax LLC, ("Community Tax"), a fast-growing leader in tax
debt resolution and other tax-related services for approximately
US$90 million in cash and stock,
subject to certain closing adjustments. The transaction is expected
to be accretive to NextPoint's 2022 earnings.
The purchase was funded with US$70
million in borrowings under a new credit facility entered
into by a newly formed subsidiary of NextPoint which holds all the
equity interests of Community Tax. NextPoint also issued the
equivalent of US$20 million of
NextPoint common shares, priced at US$4.6881 per share, to the former owners of
Community Tax.
Founded in 2010, Community Tax quickly emerged as a leader in
the tax debt resolution industry by leveraging a two-phased
approach to resolving delinquent tax problems. Community Tax is a
bilingual organization, with both English and Spanish speaking team
members across every organizational discipline. Community Tax has
offices in Chicago, Jacksonville, and Puerto Rico. Jacob
Dayan, Esq., Co-Founder and CEO of Community Tax, has joined
NextPoint as Chief Revenue Officer and will be responsible for
monetization strategies across the Company.
Brent Turner, CEO of NextPoint
commented, "Community Tax is a perfect complement to the NextPoint
platform and meets the needs of our customers. Early in 2021, we
began offering their tax resolution services to Liberty Tax
customers via our franchisees. The program was well received and
ultimately led to today's purchase which positions us as one of the
largest tax debt settlement companies in the U.S. We are now
focused on the integration of the businesses and developing plans
to support the rapid acceleration of the Community Tax business
within the broader NextPoint financial services marketplace."
About NextPoint Financial Inc.
(www.nextpointfinancial.com)
NextPoint Financial Inc. is an
all-inclusive marketplace for financial services empowering
hardworking and underserved consumers and small businesses.
NextPoint was formed through the July
2021 combination of Liberty Tax, a leading provider of tax
preparation services, with LoanMe, an online lender and loan
marketer.
Forward Looking Statements
This news release may contain "forward-looking statements" (as
defined under applicable securities laws). These forward-looking
statements relate to future events or future performance including
with respect to Community Tax's expected impact on the Company's
earnings, the integration of Community Tax, the Company's
objectives and priorities for fiscal year 2021 and beyond, and
strategies or further actions with respect to the Company, the
Company's business operations, financial performance and
condition.
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, market and general economic conditions, the ability
for the Company to integrate Community Tax into its operations, the
ongoing COVID-19 pandemic, and the risks and uncertainties
discussed in the section entitled "Risk Factors" in the Company's
final prospectus dated June 3,
2021.
The forward-looking statements contained in this news release
are presented for the purpose of assisting investors in
understanding business and strategic priorities and objectives of
the Company as at the periods indicated and may not be appropriate
for other purposes. 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. Prospective
investors are cautioned to consider these and other factors
carefully when making decisions with respect to the Company and not
place undue reliance on forward looking statements. Circumstances
affecting the Company may change rapidly. 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.