The proposed acquisition of GCS remains subject to the entering into of a definitive agreement.
'We're ready to grow and scale, and this new capital is an important step towards advancing the proposed acquisition of GCS and furthering our long-term business objectives for
GCS, whose oldest legacy company has been in continuous operation since 1967, has a diverse client base from multiple verticals, including financial & banking, credit unions, telecom & utilities, commercial/B2B, insurance, construction, property management, commercial leasing, auto finance, advertising & media, healthcare, transport & logistics, manufacturing, technology and legal services, crown corporations and all levels of government. GCS' digital eco-system for client and consumer experience is anticipated to enhance Everyday People's vertically integrated and community-minded approach to consumer financial services.
ATB Loan Details
The ATB Loan is to be used to as a component of the agreed purchase of 100% of the shares of GCS by Everyday People. Interest on the ATB Loan is payable at a rate of prime plus 2.00% per annum. The ATB Loan may be prepaid in whole or in part at any time (subject to set notice periods) without penalty. The ATB Loan is payable in full two years from the date of advance (the 'ATB Loan Maturity Date'). The ATB Borrower is required to make blended payments of
The ATB Loan will be secured by a general security agreement from the ATB Borrower providing, subject to permitted encumbrances, a first-ranking security interest over all present and after acquired personal property and receivables. The ATB Loan is also guaranteed by
Availability of the ATB Loan is subject to the satisfaction of a number of conditions precedent, including confirmation of the closing of the proposed acquisition of GCS by Everyday People.
EAM Loan Details
Everyday People has entered into a commitment letter with
The purpose of the EAM Loan is to provide acquisition financing and financing for the purchase of eligible residential properties for
The term of each advance shall be two years, and the maturity date shall be two years from the date of each loan advance. Advances and any outstanding interest may be pre-paid in full or in part at any time prior to the maturity date, provided that Everyday People pays an additional three months of interest on the amount pre-paid.
Funds advanced are to be guaranteed by
EAM has previously advanced
Each advance under the EAM Loan is subject to the satisfaction of a number of conditions precedent.
EAM is a related party of the Company. As such, the EAM Loan constitutes a 'related party transaction' for the purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ('MI 61-101'). The Company is exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the EAM Loan in reliance on sections 5.5(b) and 5.7(1)(f), respectively, of MI 61-101, as no securities of the Company are listed or quoted on the specified markets and the EAM Loan was obtained by the Company from a related party on reasonable commercial terms that are not less advantageous to the Company than if the EAM Loan were obtained from a person dealing at arm's length with the Company, and the EAM Loan, or each advance thereunder, is not convertible, directly or indirectly, into equity or voting securities of the Company or a subsidiary entity of the Company, or otherwise participating in nature, or repayable as to principal or interest, directly or indirectly, in equity or voting securities of the Company or a subsidiary entity of the Company.
About
Everyday People is a financial technology and consumer financing company founded on the belief that everyone deserves access to credit, instant payments and the opportunity for homeownership. Through our technology driven ecosystem, our alternative and specialty credit financing programs offer credit and payment cards, prepaid card programs, homeownership facilitation, consumer lending, and payment management services. Our mission is to help our clients be their best financial selves and our goal is to offer the kinds of credit products and services that help everyday people add extraordinary value to their everyday lives.
Contact:
Tel: 1 888 825 9808
Email: letsconnect@epfinancial.ca
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain 'forward-looking statements' or 'forward-looking information' (collectively referred to hereafter as 'forward-looking statements') under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the structure and terms of the proposed acquisition of GCS, the ability of the parties to negotiate and enter into a definitive agreement in respect of the proposed acquisition of GCS, the ability of the Company to complete the proposed acquisition of GCS on the terms announced or at all, the terms and conditions of the ATB Loan and the EAM Loan, the use of proceeds of the ATB Loan and the EAM Loan and the business, plans and operations of the Company. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the negotiation of the definitive agreement in respect of the proposed acquisition of GCS on satisfactory terms, the timely receipt of all required third party and regulatory approvals, including the acceptance of the
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