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.