Tickers: XTSX:SFI, XTSX:SFI.H
Tags: #Finance, #Mining
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Vancouver, B.C. / TheNewswire / April 30, 2019 - Solution Financial Inc. (TSX-V: SFI) (the "Company") wishes to announce the close of a $7.5 Million Line of Credit Loan Facility with a major Schedule 1 Canadian Financial Institution.
HIGHLIGHTS
Adds a net $6.3 million in new available leasing capital
Provides excellent leverage to our shareholders with a low interest rate at Prime plus 1.2%
Establishes a mutually beneficial relationship with a major Schedule 1 Canadian Bank
Provides a clear strategy for the expected growth of our lease portfolio to over $20 million in fiscal 2019
"We are excited about this next major milestone for Solution Financial," said Bryan Pang, Solution Financials Chief Executive Officer. "When we went public in June 2018, we had one major goal and that was to expand our access to equity and debt capital to fully capitalize on the luxury leasing market. Coming into 2019, we averaged over $26 million per year in leasing transactions but much of this business was brokered as a result of Solution's limited access to capital. Since going public, we have raised $3.5 million in equity, $4.08 million in convertible debentures and with this new $7.5 million bank relationship we are well positioned to expand our luxury car leasing offering and incrementally add to our profitable bottom line," concluded Bryan.
The $7.5 million secured line of credit facility bears interest at prime plus 1.2% per annum (current total interest of 5.15%) and will all be used for new leasing capital. The Company's lease portfolio recently surpassed $16 million.
About Solution Financial
Solution Financial was incorporated under the provisions of the Business Corporations Act (British Columbia) in 2004 and specializes in sourcing and leasing luxury and exotic vehicles, yachts and other high value assets. Solution works with a select group of automotive and marine dealerships providing lending solutions to clients who cannot obtain leasing terms with traditional Canadian financial institutions. Typical customers include new immigrants, business owners and international students. Solution Financial provides a unique leasing experience whereby it partners with its clients to help them navigate the challenges of acquiring, insuring, maintaining and upgrading vehicles and luxury assets in Canada.
For further information please contact Sean Hodgins at (778) 318-1514.
ON BEHALF OF THE BOARD
(signed) "Bryan Pang" Bryan Pang
President, CEO and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Information set forth in this news release contains forward-looking information and statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The terms and phrases "goal", "commitment", "guidance", "expects", "would", "will", "continuing", "drive", "believes", "indicate", "look forward", "grow", "outlook", "forecasts", "intend", and similar terms and phrases are intended to identify these forward-looking statements, including but not limited to statements regarding the Company's strategy to grow its lease portfolio to over $20 million in (fiscal) 2019. The Company cautions that all forward looking information and statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: risks and uncertainties relating to the Company's ability to grow its lease portfolio in accordance with its expectations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
This news release does not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Debentures and the Shares which may be issued on exercise thereof have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
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