HURST, Texas, Oct. 3, 2022 /CNW/ - NextPoint Financial Inc. (TSX: NPF.U) (TSX: NPF.WT.U) ("NextPoint" or the "Company") today announced that on September 30, 2022, the Company successfully completed a financial and organizational restructuring with one of its secured lenders that provided debt financing to certain special-purpose subsidiaries of LoanMe, LLC (formerly known as LoanMe, Inc., "LoanMe").

"The restructuring has allowed NextPoint to have a substantially strengthened capital structure that will support the success and growth of its Liberty Tax and Community Tax businesses," stated Brent Turner, the Company's Chief Executive Officer. 

In June 2022, the Company announced that LoanMe, LLC had ceased all loan originations but would continue to service outstanding loans that were originated prior to June 2022. However, due in part to an unsustainable debt load related to the LoanMe acquisition and the cessation of LoanMe's operations, the Company determined to restructure its business to refocus its resources solely on its Liberty Tax and Community Tax businesses and unwind its LoanMe business.  

NextPoint continues to operate its businesses through Liberty Tax, a leading provider of tax preparation services, and Community Tax, an effective advocate for tax debt resolution on behalf of customers.

DLA Piper LLP through its Canadian and US offices acted as legal counsel to NextPoint. Kirkland & Ellis LLP acted as counsel to the secured lender.

This news release contains "forward-looking information" and ‎‎‎"forward-looking statements" within the meaning of applicable Canadian and United States securities ‎legislation, ‎respectively. All statements, other than statements of historical fact, included herein are forward-‎looking ‎information, including, among others, statements regard the strength of the capital structure of NextPoint, the benefits of the restructuring described herein, and the potential removal of the cease trade order that NextPoint is subject to, and the filing of the necessary financial statements related thereto.  ‎Often, but not always, forward-looking ‎statements and information can be identified by the use of words such as ‎‎"plans", "expects" or "does not ‎expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", ‎or "believes", or ‎variations of such words and phrases or state that certain actions, events or results "may", "could", ‎‎‎"would", ‎‎"might" or "will" be taken, occur or be achieved. ‎Forward-looking statements or information involve known and unknown risks, uncertainties, and other ‎factors ‎which may cause the actual results, performance or achievements of NextPoint or its ‎subsidiaries to be ‎materially different from any future results, performance or achievements expressed or ‎implied by the ‎forward-looking statements or information contained in this news release. Risks, uncertainties and other ‎factors involved with forward-looking ‎information could cause actual events, results, performance, prospects ‎and opportunities to differ ‎materially from those expressed or implied by such forward-looking information, ‎including, but not ‎limited to the risks disclosed in the Company's Management's Discussion and Analysis for the three and nine months ended September 30, 2021 and the Company's final prospectus dated June 3, 2021, in each case filed with under the Company's profile on www.sedar.com.  Although the Company has ‎attempted to identify ‎important factors that could cause actual results to differ materially from those ‎contained in forward-looking ‎information, there may be other factors that cause results not to be as ‎anticipated, estimated or intended. ‎Although the Company believes that the ‎assumptions and factors used in preparing the forward-looking information ‎or forward-looking ‎statements in this news release are reasonable, undue reliance should not be placed on ‎such information ‎and no assurance can be given that such events will occur in the disclosed time frames or at ‎all. The ‎forward-looking information and forward-looking statements included in this news release are made ‎as of ‎the date of this news release and the Company does not undertake any obligation to publicly update such ‎‎forward-looking information or forward-looking statements to reflect new information, subsequent events ‎or ‎otherwise unless required by applicable securities laws.‎

SOURCE NextPoint Financial Inc.

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