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by Stockwatch Business Reporter

The TSX Venture Exchange lost 3.63 points to 766.34 Monday. David Mitchell's halted capital pool shell, Verdant Financial Partners I Inc. (VFI), has closed its qualifying transaction by acquiring 8095981 Canada Inc., doing business as Axis Auto Finance. The shell rolled back 1 for 6, which left it with 589,082 postconsolidated shares issued, then it issued 49,738,968 postconsolidated shares to Axis Auto's shareholders. The resulting company is now awaiting final TSX-V approval to begin trading as Axis Auto Finance Inc.

Axis Auto is a Toronto company that leases cars to high-risk borrowers, who do not qualify for bank financing. These borrowers include people who are young or new to Canada, and so have no credit history. Axis Auto began operations in April, 2013. It now has 23 full-time employees. According to its website, it approves 99.9 per cent of lease applications within 48 hours. On March 31, the company had 1,256 leases in its portfolio, with a total value of $11.73-million. Of this amount, Axis Auto had deemed $1.37-million worth of leases were impaired. This means they were more than 60 days past due, and the borrowers were entering bankruptcy or Axis Auto was in the process of repossessing collateral. In the nine months to March 31, 2016, Axis lost $1.61-million on revenue of $2.33-million. In the nine months to March 31, 2015, it lost $369,326 on revenue of $398,254. Axis Auto had working capital of $543,793 on March 31. It has since sold a $3.68-million private placement of units at 60 cents. It will use the proceeds for working capital, for potential acquisitions and to originate car leases.

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