goeasy Ltd. Provides Update on Sale of Equity Interest in PayBright
January 15 2021 - 7:55AM
goeasy Ltd. (TSX: GSY), (“
goeasy” or the
“
Company”), a leading full-service provider of
goods and alternative financial services, has provided an update to
the previously announced sale of its minority equity interest in
PayBright Inc. (“
PayBright”) in connection with
the sale of PayBright to Affirm Holdings Inc.
(“
Affirm”).
Under the terms of the transaction, which closed
on January 1, 2021, goeasy received i) total cash of C$23.0
million, excluding one-time expenses and closing adjustments, ii)
655,416 common shares of Affirm, and iii) 468,154 common shares of
Affirm held in escrow and subject to forfeiture if certain
PayBright revenue milestones are not met.
Subsequent to the closing of the sale
transaction, Affirm completed an initial public offering and its
shares now trade on the Nasdaq Global Select Market under the
symbol "AFRM". The equity consideration received by goeasy is
subject to customary lock-up agreements in connection with Affirm’s
initial public offering.
As previously stated, goeasy will continue its
commercial partnership with Affirm following the closing of the
sale transaction.
About goeasy
goeasy Ltd., a Canadian company, headquartered
in Mississauga, Ontario, provides non-prime leasing and lending
services through its easyhome and easyfinancial divisions. With a
wide variety of financial products and services including unsecured
and secured instalment loans, goeasy aspires to help put Canadians
on a path to a better financial future, as they rebuild their
credit and graduate to prime lending. Customers can transact
seamlessly with easyhome and easyfinancial through an omni-channel
model that includes online and mobile, as well as over 400 leasing
and lending locations across Canada supported by more than 2,000
employees. Throughout the company’s history, it has served over 1
million Canadians and originated $4.7 billion in loans, with one in
three customers graduating to prime credit and 60% increasing their
credit score within 12 months of borrowing.
goeasy is the proud recipient of several awards
including Waterstone Canada’s Most Admired Corporate Cultures,
Glassdoor Top CEO Award, Achievers Top 50 Most Engaged Workplaces
in North America, Greater Toronto Top Employers Award, the Digital
Finance Institute’s Canada’s Top 50 FinTech Companies, ranking on
the TSX30 and placing on the Report on Business ranking of Canada’s
Top Growing Companies. The company and its employees believe
strongly in giving back to the communities in which it operates and
has raised over $3.5 million to support its long-standing
partnerships with the Boys & Girls Clubs of Canada, Habitat for
Humanity and many other local charities.
goeasy Ltd.’s. common shares are listed on the
TSX under the trading symbol “GSY”. goeasy is rated BB- with
a stable trend from S&P and Ba3 with a stable trend from
Moody’s. Visit www.goeasy.com.
Forward-Looking Statements
This press release includes forward-looking
statements about the Company. In certain cases, forward-looking
statements are statements that are predictive in nature, depend
upon or refer to future events or conditions, and/or can be
identified by the use of words such as ‘expects’, ‘anticipates’,
‘intends’, ‘plans’, ‘believes’, ‘budgeted’, ‘estimates’,
‘forecasts’, ‘targets’ or negative versions thereof and similar
expressions, and/or state that certain actions, events or results
‘may’, ‘could’, ‘would’, ‘might’ or ‘will’ be taken, occur or be
achieved. Forward-looking statements are based on certain factors
and assumptions, including the expected value of the equity
consideration to be received by the Company pursuant to the sale of
the Company’s interest in PayBright, the expected growth, market
conditions, results of operations and business prospects of each of
PayBright and goeasy and are inherently subject to, among other
things, risks, uncertainties and assumptions about each of
PayBright’s and goeasy’s operations, economic factors and the
industry generally, as well as those factors referred to in the
Company’s most recent annual information form and interim and
annual management discussion and analysis, as available on
www.sedar.com, in each case in the section entitled “Risk Factors”.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those expressed or implied by
forward-looking statements made by the Company. The reader is
cautioned to consider these and other factors carefully and not
place undue reliance on forward looking statements. The Company is
under no obligation (and expressly disclaims any such obligation)
to update or alter the forward-looking statements whether as a
result of new information, future events or otherwise, unless
required by law.
For further information contact:
Jason MullinsPresident & Chief Executive
Officer(905) 272-2788
Farhan Ali KhanSenior Vice President, Corporate
Development and Investor Relations(905) 272-2788
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