HURST, TX, March 4, 2022 /CNW/ – NextPoint Financial Inc. (TSX: NPF.U) (OTC: NACQF), (“Next item“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. (“Lend me“).
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 is still ongoing, the Company has determined that certain items used to derive Adjusted Corporate EBITDA, on which LoanMe’s purchase price calculation was, in part, based, were incorrectly calculated. Accordingly, the Company believes that the consideration paid for LoanMe potentially significantly overvalued the LoanMe business. The Company will undertake its annual process to assess goodwill and other intangible assets for impairment testing. If there is significant impairment associated with these assets, the Company will provide additional disclosures in accordance with applicable laws.
Following an initial review by management, NextPoint’s Board of Directors (“Board”) has decided to undertake a more in-depth review of the purchase price calculation, including the causes of the calculation which overestimated the value of LoanMe on the date it was acquired by the Company. The Board of Directors will determine whether there is any potential recourse available to the Company with respect to the calculation of the purchase price.
About NextPoint Financial Inc. (www.nextpointfinancial.com)
NextPoint Financial Inc. is an all-inclusive marketplace for financial services that empowers hard-working, underserved consumers and small businesses. NextPoint was formed by the July 2021 combination of Liberty Tax, a leading provider of tax preparation services, with LoanMe, an online lender and loan distributor, followed by the December 2021 acquisition of Community Tax, an effective advocate for resolving tax debt on behalf of clients.
This press release may contain “forward-looking statements” (as defined by applicable securities laws). These forward-looking statements relate to future events or future performance, including with respect to: the company’s ongoing review of LoanMe’s statements, the value of LoanMe, the company’s expected results for the year ended December 31, 2021the expected impact of community tax on company profits, community tax integration, the 2022 tax filing season, and strategies or other actions regarding the company, business operations, performance and the financial condition of the company.
These forward-looking statements reflect management’s current beliefs and are based on information currently available to management. In some cases, forward-looking statements may be identified by words such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “target”, “intend”, “could” or the negative form of these terms or any 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. When evaluating forward-looking statements, readers should specifically consider various factors that could 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 Company’s ability to integrate community tax into its operations, the ongoing COVID-19 pandemic, and risks and uncertainties discussed in the section entitled “Risk Factors” in the Company’s final prospectus dated June 3, 2021.
The forward-looking statements in this press release are presented for the purpose of helping investors understand the Company’s business and strategic priorities and objectives at the times indicated and may not be appropriate for other purposes. The forward-looking statements contained in this press release are not guarantees of future performance and, although the forward-looking statements are based on certain assumptions which the Company considers to be reasonable, actual events and results could differ materially from those expressed or implied. understood by the forward-looking statements. made by the Company. Prospective investors are urged to carefully consider these and other factors when making decisions regarding the Company and not to place undue reliance on any forward-looking statements. Circumstances affecting the Company can change rapidly. Except as expressly required by applicable law, the Company undertakes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE NextPoint Financial Inc.
For more information: Contacts: [email protected], 757-493-8855; Chris Eddy or Bill Jones (Catalyst IR), [email protected]212-924-9800