Mr. Todd Hudson reports

AXIS COMPLETES SALE OF AUTO FINANCE BUSINESS

Axis Auto Finance Inc., further to its news releases dated Oct. 21, 2024, Nov. 9, 2024, and Dec. 6, 2024, and its operating subsidiaries involved in the company's auto finance business have completed the previously announced sale of the auto loan assets and undertaking of Axis. The purchase price for the assets was approximately $78-million (after taking into account adjustments for changes in the composition of the auto loans assets and fair market value of inventory since Dec. 31, 2023, but before reducing for $2.5-million, which was held back by the purchasers on closing).

The company used a portion of the proceeds to repay 100 per cent of its outstanding senior indebtedness and will use a portion to finance the first redemption payment for its unsecured convertible debentures. The company expects to finance the balance of the redemption payments for the unsecured convertible debentures from the portion of the $2.5-million, which was held back by the purchasers on closing, and an expected refund from Canada Revenue Agency for excise taxes. The company will issue further news releases as these amounts are received and paid out.

The company confirms that the redemption date for the redemption of debentures set forth in its news release dated Dec. 6, 2024, remains Dec. 16, 2024.

As set forth in the company's management information circular dated Oct. 30, 2024, in respect of the annual and special meeting of shareholders held on Nov. 29, 2024, to, among other things, approve the transaction, after repayment of outstanding creditors, it is not anticipated that there will be any funds remaining to distribute to the company's shareholders.

As the company has no remaining active business and few remaining assets, it is anticipated that the Toronto Stock Exchange will forthwith commence with the process to delist the company's common shares.

We seek Safe Harbor.