Nextpoint Financial Inc. Announces Delay of Annual Meeting and Strategic Changes to the Business of LoanMe

Rhea-AI Summary

NextPoint Financial Inc. has canceled its annual shareholder meeting scheduled for June 22, 2022, due to the unavailability of its audited consolidated financial statements for the year ended December 31, 2021. The meeting will be rescheduled once the required Financial Statements are ready. Additionally, LoanMe, Inc., a subsidiary of NextPoint, will cease loan originations and has reduced its workforce amidst changing market conditions. This strategic shift aims to align with NextPoint's growth focus and current market dynamics.

Positive

• Strategic workforce reduction at LoanMe may lead to reduced operational costs.
• Focus on core growth areas within NextPoint's business model.

Negative

• Cancellation of the annual meeting raises concerns about transparency.
• Ceasing loan originations may negatively impact LoanMe's revenue.

HURST, Texas, June 21, 2022 (GLOBE NEWSWIRE) -- NextPoint Financial Inc. (TSX: NPF.U, NPF.WT.U) (“NextPoint” or, the “Company”) announces the cancellation of the annual meeting of shareholders of NextPoint (the “Meeting”) scheduled to be held on Wednesday, June 22, 2022.

Further to the Company’s press release dated May 25, 2022, the Company has not yet provided its shareholders at the meeting with the Company’s audited consolidated financial statements for the year ended December 31, 2021 (the “Financial Statements”), as required by applicable corporate law.

Accordingly, the Company has decided to cancel the Meeting and will set a date for its annual meeting of shareholders of Nextpoint when the Financial Statements are available. The Company will deliver a new notice of meeting, information circular and proxy to its shareholders in connection with the new meeting and applicable corporate and securities laws. Further details will be provided in a subsequent news release.

Strategic Changes to the Business of LoanMe

Given current market conditions, the Company announces that LoanMe, Inc. (“LoanMe”), a subsidiary of the Company, will cease loan originations. As a result, LoanMe has reduced its workforce and will continue to service outstanding loans that were previously originated. The Company decided to make these strategic changes to the business of LoanMe to better reflect the areas of focus and growth at NextPoint and to take into account existing market dynamics.

About NextPoint Financial Inc.

NextPoint is an all-inclusive marketplace for financial services empowering hardworking and underserved consumers and small businesses. NextPoint was formed through the July 2021 combination of Liberty Tax, a leading provider of tax preparation services, with LoanMe, an online lender and loan marketer followed by the December 2021 acquisition of Community Tax, an effective advocate for tax debt resolution on behalf of customers.

FOR FURTHER INFORMATION PLEASE CONTACT:

Mike Piper
investorrelations@nxtpt.com
757-493-8855

FAQ

What is the reason for the cancellation of NextPoint Financial's annual meeting?

The meeting was canceled due to the unavailability of the audited financial statements required by corporate law.

When will NextPoint Financial reschedule its annual meeting?

The annual meeting will be rescheduled once the financial statements are available.

What changes are being made to LoanMe, a subsidiary of NextPoint?

LoanMe will cease loan originations and has reduced its workforce to align with current market conditions.

How might the cancellation of the annual meeting affect NextPoint Financial's shareholders?

The cancellation may raise concerns among shareholders regarding transparency and governance.