AFCC Automotive Finco Corp

Automotive Finco Corp. (TSX-V: AFCC) (“AFCC” or the “Company”) is announcing today that it has called a special meeting of shareholders to be held on January 29, 2021 (the “Meeting”). At the Meeting, the board of directors of the Company (the “Board”) expects to present a special resolution to shareholders for their consideration and approval to authorize a reduction of the stated capital of AFCC’s common shares (the “Shares”) pursuant to subsection 38(1) of the Canada Business Corporations Act (the “Stated Capital Reduction”). AFCC believes that the reduction of stated capital will benefit the Company by providing more flexibility in managing the Company’s capital structure. Further details regarding the Stated Capital Resolution will be contained in a management information circular which will be mailed to the Company’s shareholders in advance of the Meeting.

In connection with and subject to shareholder approval of the Stated Capital Reduction and the fulfilment of other conditions, the Board has authorized management to finalize the terms and conditions for a proposed substantial issuer bid (the “SIB”) following the Meeting whereby the Company would return a portion of its excess cash to shareholders. AFCC currently anticipates that, pursuant to the SIB, the Company will offer to purchase for cancellation up to $12,375,000 in value of its Shares by way of a modified Dutch auction with a proposed price range of not less than $1.60 per Share and not more than $1.65 per Share (in increments of $0.01 per Share within that range). The SIB, including its terms and conditions, remains subject to final approval by the Board. It is anticipated that the SIB will be initiated shortly after the Meeting to the extent the Stated Capital Reduction is approved by shareholders.

AA Capital LP, the general partner of which is controlled by Mr. Kuldeep Billan, the Chief Executive Officer of the Company, has indicated to the Company that it intends to vote its 4,333,333 Shares in favour of the special resolution to approve the Stated Capital Reduction at the Meeting.

This news release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell the Company’s Shares. The SIB referred to in this news release has not yet commenced and has not been formally approved by the Board. The solicitation and the offer to buy the Shares will only be made pursuant to a separate issuer bid circular which will contain full details of the SIB, be filed with the Canadian securities regulatory authorities and mailed to the Company’s shareholders.

For further information please contact:

Kuldeep Billan, Email: kbillan@autofincocorp.com

About Automotive Finco Corp.

Automotive Finco Corp ("AFCC") is a high growth specialty finance company focused exclusively on the auto retail sector. Through its investment in Automotive Finance LP, the Company has exposure to a business providing long term, debt based acquisition financing to auto dealerships across the globe, with an initial focus on Canada. In addition to its interest in Automotive Finance LP, AFCC may also pursue other direct investments and financing opportunities across the auto retail sector. For further information please refer to the Company's website: www.autofincocorp.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate”, “intend” and similar terminology, and reflect assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. In particular and without limitation, this news release contains forward-looking statements relating to: the timing of the Meeting; the resolutions to be presented at the Meeting, including the Stated Capital Reduction; the impact of the Stated Capital Reduction on the Company’s capital structure; AFCC’s intention to undertake a SIB; the proposed price range for the SIB; the proposed timing for launch and completion of the SIB; and the intention of AA Capital LP to vote in favour of Stated Capital Reduction.

Forward-looking information and statements involve known and unknown risks and uncertainties that may cause actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and, accordingly, undue reliance should not be placed thereon. Such risks and uncertainties include, but are not limited to: the Stated Capital Reduction may not be approved at the Meeting; the Board may decide not to proceed with the Meeting on the timeline proposed, or at all; the SIB may not occur as expected; the Board may not approve the SIB; the Company may not have sufficient resources to complete the SIB; the SIB may not be launched or completed as currently contemplated; and AA Capital LP may not vote in favour of the Stated Capital Reduction at the Meeting.

Although the forward-looking statements contained in this press release are based upon assumptions which management believes to be reasonable, AFCC cannot assure investors that actual results will be consistent with these forward-looking statements.  Readers are cautioned not to place undue reliance on forward-looking statements included in this press release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. Certain of these risks, uncertainties and assumptions, and the factors may impact them, can be found in the Company's disclosure documents on the SEDAR website at www.sedar.com. These forward-looking statements are made as of the date of this press release and AFCC disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.