Mr. Todd Hudson reports

AXIS ANNOUNCES LISTING ON THE TORONTO STOCK EXCHANGE AND PROVIDES BUSINESS UPDATE

Effective at the opening of trading on April 7, 2022, Axis Auto Finance Inc.'s common shares will trade on the Toronto Stock Exchange under the symbol AXIS. Effective at the end of trading on April 6, 2022, the common shares will be delisted from the TSX Venture Exchange.

Business update: technology-driven growth

Axis is a fintech lender, changing the way Canadians buy and finance used vehicles. Through its direct-to-consumer (D2C) portal, Drive Axis, users can choose their next used vehicle, customize financing terms and get the car delivered -- from the comfort of their home. In addition, the company continues to increase business-to-business non-prime auto loan originations by delivering innovative technology solutions and superior service to its dealer partner network.

D2C -- the future of auto retail

Launched in late 2021, Drive Axis is a fully digital e-commerce solution transforming the used car buying experience. Customers have access to thousands of vehicles, can get instantly approved for financing and have the car delivered, all without leaving their home.

As demonstrated by the U.S. market, digital retail is the next step in the evolution of car buying. Based on the successful launch of the Ontario pilot, Axis expects D2C originated loans to become a significant part of its portfolio going forward.

B2B originations continue to grow

Axis continues to set loan origination records through its coast-to-coast Canadian dealer partner network. At the end of 2021, the auto loan portfolio balance was at a record $197-million, an increase of 29 per cent year over year. Axis expects loan originations to continue to accelerate as Canada exits the remaining COVID restrictions.

Massive, highly fragmented market

Used car retail is a $40-billion market in Canada with less than 1-per-cent e-commerce adoption. With 85 per cent of retail transactions being financed, there are abundant organic growth and tuck-in acquisition opportunities for Axis.

Fiscal strength allows for continued growth

With $6-million in adjusted earnings for fiscal 2021, Axis is a profitable fintech company. The company's $120-million revolving borrowing facility provides ample room for portfolio growth, and the $15-million equity investment by Westlake Financial completed in November, 2021, has further strengthened the balance sheet.

About Axis Auto Finance Inc.

Axis is a financial technology company, changing the way Canadians buy and finance used vehicles. Through its direct-to-consumer portal, Drive Axis, customers can choose their next used vehicle, arrange financing and get the car delivered to their home. In addition, the company continues to grow B2B non-prime auto loan originations by delivering innovative technology solutions and superior service to its dealer partner network. All Axis auto loans report to Equifax, resulting in over 70 per cent of customers seeing a significant improvement of their credit scores.