Edmonton, Alberta--(Newsfile Corp. - November 2, 2022) - Everyday People Financial Corp. (TSXV: EPF) ("Everyday People" or the "Company"), a financial technology and consumer financing company, is pleased to announce that, on November 1, 2022, the Company, through EP Homes II Inc. ("EP Homes II"), a subsidiary of Everyday People Homes Inc. ("EP Homes") (itself a subsidiary of the Company), entered into a new credit arrangement with KV Capital Inc. related to a C$15,000,000 revolving line of credit (the "Facility").
"This Facility will support the Company's ability to execute on its EP Homes plan, providing everyday people with the opportunity for homeownership," said Barret Reykdal, Chief Executive Officer of Everyday People. "This new capital allows us to build out our portfolio of pre-built homes in Edmonton and Calgary, which we'll then be able to offer our customers through our EP Homes Bridge to Homeownership Program, a lease-to-own option where payments have both a lease and savings component. We're confident this unique, scalable solution helps our customers achieve homeownership while also building a sustainable source of revenue for the Company."
The term of the Facility is for 24 months and, at the end of the term, the Facility shall automatically renew for a period of 24 months, continuing to auto-renew for 24 month periods mid-term at 12 month intervals. The Facility's interest rate is set to the greater of 8.45% or TD Canada Trust's non-mortgage prime lending rate plus 3% but not exceeding 10.45%. The Facility is secured by a general security agreement, which provides KV Capital Inc. first-priority security against the EP Homes II inventory, a personal guarantee of $2.5 million from Gordon Reykdal and another $2.5 million from Carrie Reykdal. The Facility agreement contains certain financial covenants that will be measured prior to release of the funds against each home. The Facility and each advance thereunder is subject to the satisfaction of a number of conditions precedent.
About Everyday People Financial Corp.
Everyday People is a financial technology and consumer financing company founded on the belief that everyone deserves access to credit, instant payments, and the opportunity for homeownership. Through our technology driven ecosystem, our alternative and specialty credit financing programs offer credit and payment cards, prepaid card programs, homeownership facilitation, consumer lending, and payment management services. Our mission is to help our clients be their best financial selves and our goal is to offer the kinds of credit products and services that help everyday people add extraordinary value to their everyday lives. For more information visit: www.everydaypeoplefinancial.com.
For further information, please contact:
Barret Reykdal
Chief Executive Officer
letsconnect@epfinancial.ca
1 888 825 9808
Caroline Sawamoto
Investor Relations
letsconnect@epfinancial.ca
1 888 825 9808
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain "forward-looking statements" or "forward-looking information" (collectively referred to hereafter as "forward-looking statements") under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the terms and conditions of the Facility, the use of proceeds of the Facility and the business, plans and operations of the Company. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the ability of the Company to satisfy conditions precedent under the Facility, the ability of the Company to comply with the terms and conditions of the Facility, expectations and assumptions concerning the Company as well as other risks and uncertainties, including those described in the filing statement of the Company dated July 27, 2022, which is available on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/142767
