HURST,
Texas, May 17, 2023 /CNW/ - NextPoint Financial
Inc. ("NextPoint" or the "Company") (TSX: NPF.U)
(TSX: NPF.WT.U) (OTC PINK: NACQF) hereby announces that it has
received a letter from legal counsel to Mr. Phil Drake ("Drake") requesting that the
Company replace four members of its board of directors (the
"Board") with nominees selected by Drake (the "Drake
Nominees") or Drake will solicit shareholder support necessary
to requisition a meeting of the Company's shareholders to propose
an alternative slate of directors. The Drake Nominees
include, among others, Mr. Michael Brent
Turner ("Mr. Turner"), the former Chief Executive
Officer of NextPoint.
Given the request from Drake to appoint Mr. Turner as Chairman
and in response to various inquiries received from Company
shareholders, the Company is confirming that Mr. Turner was
terminated on March 30, 2023, for
cause in his role as Chief Executive Officer following a
multi-month internal investigation which findings included the
following:
- Mr. Turner directed and/or permitted Company personnel to
conduct business transactions with business entities in which Mr.
Turner had and/or appeared to have a continuing financial interest,
at significant cost to the Company, without full disclosure to the
Board, written consent of the Board to proceed or written waivers
of the actual and/or perceived conflicts of interest.
- Mr. Turner engaged in conduct determined to be fundamentally
inconsistent with his duties as an officer and director of the
Company and in breach of the Company's policies and
procedures.
- Mr. Turner failed to follow the Board's directive in relation
to related party transactions.
- Mr. Turner created an inappropriate "tone at the top" at the
Company.
Mr. Turner resigned from the Board after being terminated for
cause.
The Company's ongoing investigation, which is being supported by
independent legal counsel, is continuing to review Mr. Turner's use
of corporate funds and resources during his tenure. Based on the
preliminary information obtained through the ongoing investigation,
the Company does not currently anticipate any material changes to
its historical financial statements or related disclosures.
Nonetheless, if appropriate, the Company is committed to seeking
restitution and other remedies for the benefit of the Company's
shareholders from Mr. Turner. In addition, as announced by the
Company on May 10, 2023, the Company
has retained independent legal counsel to investigate and pursue
potential claims relating to the Company's acquisition of LoanMe,
Inc. in July 2021.
About NextPoint Financial Inc.
NextPoint is an all-inclusive marketplace for financial services
empowering hardworking and underserved consumers and small
businesses. NextPoint's primary business units are Liberty Tax, a
leading provider of tax preparation services, and Community Tax, an
effective advocate for tax debt resolution on behalf of
customers.
Forward-Looking Statements
This news release contains statements that include
"forward-looking information" (as defined under applicable
securities laws) ("forward-looking statements"). These
forward-looking statements relate to future events or future
performance including with respect to the results of the Company's
internal investigations into Mr. Turner and LoanMe, Inc., the
impact of such investigations on the Company's historical financial
statements or related disclosures and the outcome, impact and
timing of any related claims. 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, the timing for and outcome of the
Company's internal investigations and the risks and uncertainties
discussed in the section entitled "Risk Factors" in the Company's
annual information form dated January 15,
2023. 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. 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.