HURST,
TX, March 4, 2022 /CNW/ - NextPoint Financial
Inc. (TSX: NPF.U) (OTC: NACQF), ("NextPoint" or the
"Company"), announced today that it has identified
potentially material errors in the calculation of the purchase
price paid by the Company to acquire LoanMe Inc. ("LoanMe").
LoanMe was acquired by the Company on July 2, 2021 in connection with the completion of
its qualifying acquisition. Based on a preliminary review, which
remains ongoing, the Company has determined that certain items used
in deriving the Adjusted Corporate EBITDA, on which the
calculation of the purchase price of LoanMe was, in part, based,
were incorrectly calculated. As a result, the Company
believes that the consideration paid for LoanMe potentially
overvalued the LoanMe business substantially. The Company will
undertake its annual process of evaluating goodwill and other
intangibles for impairment testing. If there is a material
impairment charge associated with these assets, the Company will
make further disclosure in accordance with applicable laws.
Following an initial review by management, the NextPoint Board
of Directors ("BOD") has determined to undertake a more extensive
review of the calculation of the purchase price including the
causes of the miscalculation that overstated the value of LoanMe as
of the date on which it was acquired by the Company. The BOD will
determine whether there is potential recourse available to the
Company in respect of the purchase price calculation.
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 followed by the December
2021 acquisition of Community Tax, an effective advocate for
tax debt resolution on behalf of customers.
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: the Company's ongoing review of the LoanMe
Statements, the value of LoanMe, the Company's expected results for
the year ended December 31, 2021,
Community Tax's expected impact on the Company's earnings, the
integration of Community Tax, the 2022 tax filing season, 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.