Mr. Todd Hudson reports

AXIS ANNOUNCES PROPOSED REDEMPTION OF DEBENTURES

Axis Auto Finance Inc., pursuant to the terms of the indenture governing the company's 7.5 per cent extendible unsecured convertible subordinated debentures issued in April, 2018, has set Dec. 16, 2024, as the redemption date for the debentures. The redemption date has been set in anticipation of the company closing its previously announced sale of the auto loan assets and undertaking of Axis to Fionic Canada Ltd. and an affiliate of Fionic on or about Dec. 12, 2024.

All of the outstanding debentures are to be redeemed and, under the terms of the indenture, the company is obligated to pay the redemption payment in up to three instalments. The first instalment will be an amount equal to the outstanding interest up to, but excluding, the redemption date, as well as 60 per cent of the outstanding principal amount. Based on a redemption date of Dec. 16, 2024, the first instalment will be $11,147,906.25 (comprising $10.53-million of principal and $617,906.25 of interest). The second instalment, which will be equal to at least 12 per cent of the principal amount outstanding as of the redemption date, will be paid following receipt of a holdback payment payable pursuant to the transaction. The third and final instalment is to be paid following receipt by the company of an amount owing to the company by Canada Revenue Agency. Pursuant to the indenture, the principal portion of the redemption payment is to be not less than 80 per cent nor more than 85 per cent of the principal amount outstanding as of the redemption date.

The completion of the redemption is conditional on the closing of the transaction. The corporation will reconfirm the redemption date in the news release that announces the closing of the transaction and if the redemption date needs to be delayed a revised redemption notice will be provided and a further news release issued.

A copy of the redemption notice will be filed under the company's profile on SEDAR+ and on the company's website.

Update on delisting

As disclosed in the information circular provided to shareholders in connection with the annual and special meeting of shareholders held on Nov. 29, 2024, it is anticipated that the company's common shares will be delisted from the Toronto Stock Exchange shortly following the closing of the transaction. The company will provide additional updates with respect to the timing of the delisting once they are available.

About Axis Auto Finance Inc.

Axis is a fintech (financial technology) lender providing alternative used vehicle financing options to non-prime borrowers. Axis loans are offered through automotive dealers to approximately 30 per cent of Canadians (source: Equifax) that have credit scores in the non-prime range. All Axis auto loans report to the credit bureau, resulting in over 70 per cent of customers seeing a significant improvement of their credit scores.

We seek Safe Harbor.