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.

Copyright 2022 Canada NewsWire

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