XS Financial Taken Private by Mavik Capital and Axar Capital
XS Financial Inc. (CSE:XSF) has been taken private by Mavik Capital Management and Axar Capital Management LP in a transaction that closed on September 30, 2024. This move positions XS to expand its platform in the growing equipment financing space, leveraging the deep lending expertise and resources of both Mavik and Axar.
The transaction, approved by XS securityholders on September 9, 2024, involved Mavik and Axar acquiring all issued and outstanding shares of XS for Cdn$0.05265 per subordinate voting share and Cdn$52.65 per proportionate voting share. As a result, XS's shares will be delisted from the Canadian Securities Exchange and the OTCQB.
This strategic move aims to accelerate XS's growth, diversify its customer base, and capitalize on the increasing demand for CAPEX financing in the U.S. equipment finance industry, which has now reached a trillion-dollar market size.
XS Financial Inc. (CSE:XSF) è stata acquisita da Mavik Capital Management e Axar Capital Management LP in una transazione conclusa il 30 settembre 2024. Questa mossa posiziona XS per espandere la sua piattaforma nel crescente settore del finanziamento di attrezzature, sfruttando la profonda esperienza e le risorse di lending di entrambe Mavik e Axar.
La transazione, approvata dai titolari di titoli di XS il 9 settembre 2024, ha visto Mavik e Axar acquisire tutte le azioni emesse e in circolazione di XS per Cdn$0.05265 per azione con diritto di voto subordinato e Cdn$52.65 per azione con diritto di voto proporzionale. Di conseguenza, le azioni di XS saranno rimosse dalla Canadian Securities Exchange e dall'OTCQB.
Questa mossa strategica mira ad accelerare la crescita di XS, diversificare la sua base di clienti e capitalizzare sulla crescente domanda di finanziamenti CAPEX nell'industria finanziaria apparecchiature negli Stati Uniti, che ha ora raggiunto una dimensione di mercato da trilioni di dollari.
XS Financial Inc. (CSE:XSF) ha sido adquirida por Mavik Capital Management y Axar Capital Management LP en una transacción que se cerró el 30 de septiembre de 2024. Este movimiento posiciona a XS para expandir su plataforma en el creciente sector de financiamiento de equipos, aprovechando la profunda experiencia y los recursos de préstamo de Mavik y Axar.
La transacción, aprobada por los tenedores de valores de XS el 9 de septiembre de 2024, involucró a Mavik y Axar adquiriendo todas las acciones emitidas y en circulación de XS por Cdn$0.05265 por acción de voto subordinado y Cdn$52.65 por acción de voto proporcional. Como resultado, las acciones de XS serán retiradas de la Canadian Securities Exchange y del OTCQB.
Este movimiento estratégico tiene como objetivo acelerar el crecimiento de XS, diversificar su base de clientes y capitalizar sobre la creciente demanda de financiamiento de CAPEX en la industria de financiamiento de equipos de EE.UU., que ahora ha alcanzado un tamaño de mercado de un billón de dólares.
XS Financial Inc. (CSE:XSF)가 2024년 9월 30일에 Mavik Capital Management와 Axar Capital Management LP에 의해 비상장으로 전환되었습니다. 이 결정은 XS가 성장하는 장비 금융 분야에서 플랫폼을 확장하고 Mavik 및 Axar의 깊은 대출 전문 지식과 자원을 활용할 수 있도록 합니다.
2024년 9월 9일 XS의 주주들이 승인한 이번 거래에서는 Mavik과 Axar가 XS의 모든 발행 주식과 유통 주식을 Cdn$0.05265의 보조 투표 주식 및 Cdn$52.65의 비례 투표 주식에 대해 인수하는 내용이 포함되었습니다. 그 결과 XS의 주식은 캐나다 증권 거래소와 OTCQB에서 상장 폐지됩니다.
이번 전략적 결정은 XS의 성장을 가속화하고, 고객 기반을 다양화하며, 미국 장비 금융 산업에서 증가하는 CAPEX 금융 수요를 활용하는 것을 목표로 하고 있으며, 현재 1조 달러 규모의 시장에 도달했습니다.
XS Financial Inc. (CSE:XSF) a été privatisée par Mavik Capital Management et Axar Capital Management LP lors d'une transaction clôturée le 30 septembre 2024. Ce mouvement permet à XS d'élargir sa plateforme dans le secteur croissant du financement d'équipements, en tirant parti de l'expertise et des ressources approfondies en matière de prêts de Mavik et d'Axar.
La transaction, approuvée par les détenteurs de titres de XS le 9 septembre 2024, a impliqué Mavik et Axar acquérant toutes les actions émises et en circulation de XS pour Cdn$0.05265 par action de vote subordonnée et Cdn$52.65 par action de vote proportionnel. En conséquence, les actions de XS seront retirées de la Bourse des valeurs canadienne et de l'OTCQB.
Ce mouvement stratégique vise à accélérer la croissance de XS, à diversifier sa base de clients et à capitaliser sur la demande croissante de financements CAPEX dans l'industrie du financement d'équipements aux États-Unis, qui a maintenant atteint une taille de marché d'un billion de dollars.
XS Financial Inc. (CSE:XSF) wurde am 30. September 2024 von Mavik Capital Management und Axar Capital Management LP privat übernommen. Dieser Schritt positioniert XS, um ihre Plattform im wachsenden Bereich der Equipment-Finanzierung auszubauen und die tiefgehende Kreditvergabe-Expertise sowie die Ressourcen von Mavik und Axar zu nutzen.
Die Transaktion, die am 9. September 2024 von den Sicherheitsinhabern von XS genehmigt wurde, umfasste den Erwerb aller ausgegebenen und im Umlauf befindlichen Aktien von XS durch Mavik und Axar zu Cdn$0.05265 pro nachrangiger stimmberechtigter Aktie und Cdn$52.65 pro proportionales stimmberechtigtes Aktie. Infolgedessen werden die Aktien von XS von der Canadian Securities Exchange und dem OTCQB abgezogen.
Dieser strategische Schritt zielt darauf ab, das Wachstum von XS zu beschleunigen, die Kundenbasis zu diversifizieren und von der steigenden Nachfrage nach CAPEX-Finanzierungen in der US-Ausrüstungsfinanzierungsbranche zu profitieren, die nun eine Marktgröße von einer Billion Dollar erreicht hat.
- Transaction positions XS for expansion in the growing equipment financing market
- Access to deep lending expertise and resources from Mavik and Axar
- Opportunity to scale and diversify offerings in the middle-market U.S. business segment
- Flexibility to explore new growth avenues as a private company
- Delisting from Canadian Securities Exchange and OTCQB, reducing public trading options for existing shareholders
- Cancellation of outstanding stock options and share purchase warrants without payment to holders
Mavik and Axar Join Forces to Accelerate and Diversify XS's Equipment Financing Business
Transaction Positions XS for Continued Growth Amidst Increased Demand for CAPEX Financing
LOS ANGELES, CA / ACCESSWIRE / September 30, 2024 / XS FINANCIAL INC. (CSE:XSF) ("XS" or the "Company") today announced the closing of its agreement (the "Transaction") to be taken private by Mavik Capital Management ("Mavik"), a multi-strategy investment firm with a flexible strategy across hard assets, and Axar Capital Management LP ("Axar"), a value-oriented alternative asset management firm focused on North American middle market opportunities.
The Transaction establishes XS as a private company and positions it to expand its platform in the growing equipment financing space. With the deep lending expertise and collective resources of both Mavik and Axar, XS will be able to further scale and diversify its offerings to provide flexible financing solutions that meet the evolving needs of middle-market U.S. businesses across a variety of industries.
Vik Uppal, Founder and CEO of Mavik, commented:
"With the U.S. equipment finance industry now a trillion-dollar industry, we see a substantial opportunity ahead for XS given its attractive portfolio, robust network of borrower and vendor relationships, and the beneficial supply-demand dynamics across its growing segment of the middle market. This transaction was a natural fit for Mavik because it not only closely aligns with our strategic focus on credit investments in the hard assets space, but it also represents a synergistic addition to our ecosystem that will benefit both Mavik and XS lending partners. We look forward to collaborating with the XS Team as we build on the solid foundation they have established over the past seven years and explore new growth avenues together."
Andrew Axelrod, Founder and Managing Partner at Axar, commented:
"XS is at a critical inflection point in its growth trajectory, and we believe it will be better positioned to capitalize on the opportunities ahead in the robust equipment finance market as a private company. Together with Mavik, we will be able to leverage our collective experience and expertise to help XS further diversify its customer base while building on its long-standing borrower and vendor relationships."
David Kivitz, CEO of XS, commented:
"We are thrilled to partner with Mavik and Axar, two experienced credit investors with a strong history of collaboration and innovation that makes them the ideal partners for XS. Both Mavik and Axar bring a deep understanding of the unique needs of our borrowers, coupled with exceptional track records in middle-market investing, which will differentiate us for our customers, partners and team moving forward. As a private company, we will now have the flexibility to scale our business and expand into new verticals, capitalizing on the growing demand for CAPEX financing in the market."
XS previously announced that it had entered into a definitive agreement to be taken private on June 24, 2024, and the Transaction was approved by XS securityholders at the Company's general and special meeting held on September 9, 2024 (the "Meeting"). For further details, please refer to the management information circular of XS dated August 2, 2024 in respect of the Meeting and the press releases of XS dated June 24 and August 29, 2024, all available at SEDAR+ online at www.sedarplus.ca.
Under the terms of the Transaction, Mavik and Axar acquired all of the issued and outstanding subordinate voting shares ("SV Shares") and proportionate voting shares ("PV Shares") of XS for a cash purchase price of Cdn
As a result of the closing of the Transaction, XS's subordinate voting shares (XSF) will be delisted from the Canadian Securities Exchange and the OTCQB.
Advisors
Compass Point Research & Trading LLC and Gramercy Capital Group, LLC (through INTE Securities LLC, member FINRA/SIPC) acted as financial advisors to XS. Fogler, Rubinoff LLP and Michael Bluestein acted as legal advisors to the XS.
Alston & Bird LLP served as legal advisor to Mavik, and Schulte Roth & Zabel LLP and Blake, Cassels & Graydon LLP served as legal advisors to Axar.
About XS Financial
Founded in 2017, XS specializes in providing middle-market businesses with competitively priced, non-dilutive CAPEX and equipment financing. XS has partnered with over 250 original equipment manufacturers (OEM) through its network of Preferred Vendor partnerships. This powerful dynamic provides an end-to-end solution for customers which results in recurring revenues, strong profit margins, and a proven business model for XS stakeholders. For more information, visit: www.xsfinancial.com.
About Mavik Capital Management
Mavik is a next-generation, multi-strategy investment firm built to deliver long-term outperformance. Founded by Vik Uppal to Build Different, Mavik has an expansive strategy that is grounded in real estate and hard assets and views the world through a credit lens. The firm strives to simultaneously create successful outcomes for its universe of stakeholders - investors, borrowers, and employees. Since its inception, Mavik has deployed over
About Axar Capital Management LP
Axar Capital Management LP is a value-oriented investment firm focused on highly flexible, opportunistic investing in the corporate middle market. Axar's investment team focuses on opportunities across the capital structure in complex situations as a provider of debt and equity solutions that allow its management teams and portfolio companies to realize their long-term value potential. For more information, please go to www.axarcapital.com.
Media Contact
Mavik Capital Management
Longacre Square Partners
Kate Sylvester, 646-386-0091
ksylvester@longacresquare.com
Axar Capital Management LP
Gagnier Communications
Dan Gagnier, 646-342-8087
dg@gagnierfc.com
Forward-Looking Information
This press release contains "forward-looking information" and may also contain statements that may constitute "forward-looking statements", collectively "forward-looking information", within the meaning of applicable Canadian securities legislation. Such forward-looking information is not representative of historical facts or information or current condition, but instead represent the beliefs and expectations regarding future events about the business and the industry and markets in which XS operates, as well as plans or objectives of management, many of which, by their nature, are inherently uncertain. Generally, such forward-looking information can be identified by the use of terminology such as "plans", "expects" or "does not expect", "is expected", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved".
Forward-looking statements and information are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performance or achievements of XS to be materially different from future results, performance or achievements expressed or implied by such statements or information. There can be no assurance that such statements or information will prove to be accurate. Such statements and information are based on numerous assumptions, including assumptions regarding the potential future scaling and diversification of XS's operations.
Although XS believes that the forward-looking statements in this press release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking statements.
Readers are cautioned not to place undue reliance on forward-looking information or statements. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predicted outcomes will not occur. Events or circumstances could cause XS's actual results to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements.
Furthermore, the forward-looking statements and information contained herein are made as of the date of this document and XS does not undertake any obligation to update or to revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by applicable law. The forward-looking statements and information contained herein are expressly qualified by this cautionary statement.
SOURCE: XS Financial
View the original press release on accesswire.com
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