Announcement • Dec 13
Fionic Canada Ltd. completed the acquisition of Auto Finance Business and Certain Assets of Axis Auto Finance Inc. (TSX:AXIS). Fionic Canada Ltd. signed a letter of intent to acquire Auto Finance Business and Certain Assets of Axis Auto Finance Inc. (TSX:AXIS) on May 15, 2024. As of October 21, 2024, Fionic Canada Ltd. entered into an asset purchase agreement to acquire Auto Finance Business and Certain Assets of Axis Auto Finance Inc. for a base purchase price of approximately CAD 114 million, subject to adjustments for changes in the composition of the auto loans assets and fair market value of inventory since December 31, 2023.
The deal is subject for approval of Merger Agreement by Target Board and Approval of Offer by Target Shareholders. The Board of Axis Auto Finance unanimously determined that the proposed transaction is in the best interests of the Axis Auto Finance Inc. and is fair to the Axis Auto Finance's securityholders. The transaction will require the approval of two-thirds of votes cast by shareholders of the Axis Auto Finance at a meeting scheduled for November 29, 2024. As of November 29, 2024, target shareholders approved the transaction with Fionic. The transaction is expected to close in the quarter ending December 31, 2024.
Evans & Evans, Inc. acted as Fairness opinion provider for the Special Committee and Board of Directors of Axis Auto Finance Inc.
Fionic Canada Ltd. completed the acquisition of Auto Finance Business and Certain Assets of Axis Auto Finance Inc. (TSX:AXIS) on May 15, 2024. 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 December 31, 2023. Announcement • Dec 07
Axis Auto Finance Inc. announced that it expects to receive CAD 17.55 million in funding Axis Auto Finance Inc. announced a private placement that it will issue 7.50% Extendible Convertible Unsecured Subordinated Debentures for the principal amount of CAD 17,550,000 on December 6, 2024. The redemption taking place on the Redemption Date is conditional on the sale of the auto loan assets and undertaking of the Corporation pursuant to the asset purchase agreement entered into between the Corporation and Fionic Canada Ltd. Provided that the redemption occurs on the Redemption Date, the amount of the First Redemption
Payment will be CAD 11,147,906.25. Reported Earnings • Nov 16
First quarter 2025 earnings released: EPS: CA$0.015 (vs CA$0.019 loss in 1Q 2024) First quarter 2025 results: EPS: CA$0.015 (up from CA$0.019 loss in 1Q 2024). Net income: CA$1.83m (up CA$4.15m from 1Q 2024). Announcement • Oct 18
Axis Auto Finance Inc., Annual General Meeting, Nov 29, 2024 Axis Auto Finance Inc., Annual General Meeting, Nov 29, 2024. Reported Earnings • Sep 29
Full year 2024 earnings released: CA$0.19 loss per share (vs CA$0.21 loss in FY 2023) Full year 2024 results: CA$0.19 loss per share (improved from CA$0.21 loss in FY 2023). Net loss: CA$23.2m (loss narrowed 12% from FY 2023). Reported Earnings • May 16
Third quarter 2024 earnings released: CA$0.017 loss per share (vs CA$0.039 loss in 3Q 2023) Third quarter 2024 results: CA$0.017 loss per share (improved from CA$0.039 loss in 3Q 2023). Net loss: CA$2.08m (loss narrowed 56% from 3Q 2023). Buy Or Sell Opportunity • Mar 14
Now 46% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.5% to €0.032. The fair value is estimated to be €0.06, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 26% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Feb 14
Second quarter 2024 earnings released: CA$0.008 loss per share (vs CA$0.004 loss in 2Q 2023) Second quarter 2024 results: CA$0.008 loss per share (further deteriorated from CA$0.004 loss in 2Q 2023). Net loss: CA$970.2k (loss widened 107% from 2Q 2023). Announcement • Dec 22
Axis Auto Finance Inc. Appoints Arlene O'neill as Director Axis Auto Finance Inc. announced that at the AGM was held on December 21, 2023, the company approved the appointment of Arlene O'Neill as director. Reported Earnings • Nov 17
First quarter 2024 earnings released: CA$0.019 loss per share (vs CA$0.007 loss in 1Q 2023) First quarter 2024 results: CA$0.019 loss per share (further deteriorated from CA$0.007 loss in 1Q 2023). Net loss: CA$2.33m (loss widened 156% from 1Q 2023). Announcement • Sep 17
Axis Auto Finance Inc. Reports Impairment Charges for the Fourth Quarter Ended June 30, 2023 Axis Auto Finance Inc. reported impairment charges for the fourth quarter ended June 30, 2023. For the quarter, the company reported goodwill impairment expense of $17,810,702. The company incurred a non-cash, goodwill impairment expense related to its automotive cash generating unit (“CGU”), as compared to nil in the comparable quarter of prior year. New Risk • Sep 17
New major risk - Revenue and earnings growth Earnings have declined by 7.1% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (19% average weekly change). Earnings have declined by 7.1% per year over the past 5 years. Market cap is less than US$10m (€8.38m market cap, or US$8.93m). Reported Earnings • Sep 17
Full year 2023 earnings released: CA$0.21 loss per share (vs CA$0.012 profit in FY 2022) Full year 2023 results: CA$0.21 loss per share (down from CA$0.012 profit in FY 2022). Net loss: CA$26.2m (down CA$27.7m from profit in FY 2022). Announcement • Sep 12
Axis Auto Finance Inc. announced that it has received CAD 2.67 million in funding Axis Auto Finance Inc. announced a private placement of non-convertible debentures for proceeds of CAD 2.67 million on September 11, 2023. The debentures mature on September 30, 2025 and carry an annual interest rate of 12%, accrued and payable quarterly in arrears on each March 31, June 30, September 30 and December 31, in cash. Subject to certain conditions, the company will have the right to prepay any or part of the debentures at any time prior to the maturity date by paying the principal amount and accrued and unpaid interest. The principal amount of the debentures is not convertible into common shares or any other securities of the company. The company also issued an aggregate of 12,015,000 common share purchase warrants, each of which entitles the holder thereof to purchase one common share of the company at an exercise price of CAD 0.16 per share for a period of three years from the date of issuance. The debentures, warrants and warrant shares are subject to a four-month statutory hold period commencing on the date of their issuance. As part of the transaction, an aggregate of CAD 600,000 principal amount of the debentures and 2,700,000 Warrants were purchased by officers and directors of the company. Buying Opportunity • Sep 11
Now 27% undervalued after recent price drop Over the last 90 days, the stock is down 48%. The fair value is estimated to be €0.088, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.0% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • May 14
Third quarter 2023 earnings released: CA$0.039 loss per share (vs CA$0.002 profit in 3Q 2022) Third quarter 2023 results: CA$0.039 loss per share (down from CA$0.002 profit in 3Q 2022). Net loss: CA$4.71m (down CA$5.01m from profit in 3Q 2022). Revenue is forecast to grow 77% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Consumer Finance industry in Europe. Reported Earnings • Feb 14
Second quarter 2023 earnings released: CA$0.004 loss per share (vs CA$0.002 profit in 2Q 2022) Second quarter 2023 results: CA$0.004 loss per share (down from CA$0.002 profit in 2Q 2022). Revenue: CA$4.25m (down 16% from 2Q 2022). Net loss: CA$467.9k (down 306% from profit in 2Q 2022). Revenue is forecast to grow 63% p.a. on average during the next 2 years, compared to a 9.5% growth forecast for the Consumer Finance industry in Europe. Announcement • Jan 27
Axis Auto Finance Inc. (TSX : AXIS) entered into an agreement to acquire portfolio of auto loans from an Ontario based competitor. Axis Auto Finance Inc. (TSX : AXIS) entered into an agreement to acquire portfolio of auto loans from an Ontario based competitor on January 26, 2023. The CAD 17.2 million in principal balances represent approximately 1,100 loan contracts. Funded through cash on closing and a holdback to be released over 36 months subject to portfolio performance. The transaction is scheduled to close on January 31, 2023. Reported Earnings • Nov 17
First quarter 2023 earnings released: CA$0.007 loss per share (vs CA$0.007 profit in 1Q 2022) First quarter 2023 results: CA$0.007 loss per share (down from CA$0.007 profit in 1Q 2022). Revenue: CA$3.64m (down 32% from 1Q 2022). Net loss: CA$908.3k (down 240% from profit in 1Q 2022). Revenue is forecast to grow 56% p.a. on average during the next 2 years, compared to a 8.2% growth forecast for the Consumer Finance industry in Europe. Reported Earnings • Sep 15
Full year 2022 earnings released: EPS: CA$0.013 (vs CA$0.024 in FY 2021) Full year 2022 results: EPS: CA$0.013 (down from CA$0.024 in FY 2021). Revenue: CA$20.7m (up 9.8% from FY 2021). Net income: CA$1.48m (down 36% from FY 2021). Profit margin: 7.2% (down from 12% in FY 2021). The decrease in margin was driven by higher expenses. Reported Earnings • May 11
Third quarter 2022 earnings released: EPS: CA$0.002 (vs CA$0.006 in 3Q 2021) Third quarter 2022 results: EPS: CA$0.002 (down from CA$0.006 in 3Q 2021). Revenue: CA$4.98m (up 7.9% from 3Q 2021). Net income: CA$293.4k (down 51% from 3Q 2021). Profit margin: 5.9% (down from 13% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 141%, compared to a 75% growth forecast for the industry in Germany. 
