TORONTO, Sept. 16, 2021 /CNW/ - Chesswood Group Limited ("Chesswood" or the "Company") (TSX: CHW), a publicly traded North American commercial equipment finance provider for small and medium-sized businesses, announces the formation of a consumer home finance unit (Vault Home Credit Corporation).
Chesswood Group is pleased to announce the formation of Vault Home Credit Corporation – providing home improvement and other consumer financing solutions in Canada. Vault Home will be managed by John Stout and Kyle Wenn, the former founders of SNAP Financial Group, a leading Canadian home improvement and premium finance company that was sold in 2020. Prior to the sale, SNAP had gross receivables of approximately $750 million and annual originations exceeding $250 million.
Vault Home will leverage the brand and existing infrastructure of Vault Credit Corporation. "The formation of Vault Home will expand Chesswood's footprint outside of equipment leasing, diversifying our portfolio and increasing our addressable market in Canada. We are particularly excited to be partnering with John Stout and Kyle Wenn, both of whom have strong track records in the home improvement market in addition to being industry veterans in Canada's specialty finance sector" said Chesswood Group CEO Ryan Marr.
Added John Stout, "We are excited to be back in the consumer financing business and in partnership with Chesswood Group. Our teams share a common culture and vision to build a specialty finance platform in Canada. Working with Chesswood, we look forward to providing best in class service and financial products to our network of dealers and partners."
Vault Home has already signed a number of dealer contracts and is targeting first year originations of $60 million.
Chesswood has a 51% ownership interest in Vault Home. It has committed to provide (including the amount contributed for its ownership interest) $2.5 million of capital.
Senior Management Update
Effective immediately, Tobias Rajchel has been appointed as Chief Financial Officer of Chesswood Group Limited. Mr. Rajchel has been serving as interim Chief Financial Officer since March 2021.
About Chesswood
Through two wholly-owned subsidiaries in the United States and two subsidiaries in Canada, Chesswood Group Limited is North America's only publicly traded commercial equipment finance company focused on small and medium-sized businesses. Colorado-based Pawnee Leasing Corporation, founded in 1982, finances a highly diversified portfolio of commercial equipment leases and loans through relationships with over 600 independent brokers in the United States. Tandem Finance Inc. provides financing in the U.S. through the equipment vendor channel. In Canada, Blue Chip Leasing Corporation has been originating and servicing commercial equipment leases and loans since 1996, and today operates through a nationwide network of more than 50 independent brokers. Vault Credit Corporation specializes in equipment leases and commercial loans across Canada, allowing for customizable financing solutions while catering to a wide spectrum of credit tiers, equipment types and sectors by offering industry-leading service levels, experienced underwriters and account administrators.
Based in Toronto, Canada, Chesswood Group Limited's shares trade on the TSX under the symbol CHW.
To learn more about Chesswood Group Limited, visit www.ChesswoodGroup.com.
The websites of Chesswood Group Limited's operating businesses are:
This press release contains forward-looking statements that involve a number of risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Many factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements (including the ultimate duration and severity of the COVID-19 pandemic and the integration and successful launch and growth of Vault Home). By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. Additional information about the risks and uncertainties of the Company's businesses and material factors or assumptions on which information contained in forward-looking statements is based is provided in its publicly filed documents, including the Company's annual information form and management's discussion and analysis of the financial condition and performance, which are available electronically through the System for Electronic Document Analysis and Retrieval at www.sedar.com.
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
SOURCE Chesswood Group Limited
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