Edmonton, Alberta--(Newsfile Corp. - January 20, 2025) - Everyday People Financial Corp. (TSXV: EPF) (OTCQB: EPFCF) ("Everyday People" or the "Company"), a financial service provider, is pleased to announce that its board of directors has approved the settlement of a portion of the Company's debt owed to EAM Enterprises Inc. ("EAM") through the issuance of common shares (the "Debt Settlement"). This initiative reflects the Company's ongoing efforts to enhance its financial position by reducing liabilities and preserving cash to support operational needs and drive strategic growth, particularly in its Revenue Cycle Management ("RCM") business pillar.
The Company acknowledges the significant role played by its founder and Executive Chairman, Gordon Reykdal, in the Company's journey from inception to its public listing on the TSX Venture Exchange (the "TSXV"). Gordon Reykdal's unwavering commitment to Everyday People's growth has been demonstrated by his decision to personally advance loans through EAM to the Company during its critical developmental stages. These loans were instrumental in building the foundation for the Company's current operations and long-term success.
Debt Settlement Details
As disclosed in the Company's consolidated financial statements for the period ended September 30, 2024, the Company was indebted to EAM in the amount of $5,380,599. The Company will issue an aggregate of 2,439,024 common shares (the "Settlement Shares") to EAM at a deemed price of $0.82 per common share to settle a portion of the outstanding indebtedness in the amount of $2 million.
The Settlement Shares will be issued as a non-arm's length transaction, as EAM is a Company controlled by Gordon Reykdal, Executive Chairman and Director of the Company. As of December 31, 2023, EAM together with Gordon Reykdal owned 20.2% of the Company's issued and outstanding common shares, and currently 18.7%. Upon completion of the Debt Settlement, EAM together with Gordon Reykdal will hold 20.8% of the Company's issued and outstanding common shares. The Debt Settlement will not result in the creation of a new control person or insider of the Company.
The Debt Settlement remains subject to the approval of the TSXV. If approved by the TSXV, EAM together with Gordon Reykdal will own 20.8% of the Company's issued and outstanding common shares. The Settlement Shares will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities laws and the policies of the TSXV.
Related Party Transaction Disclosure
The issuance of the Settlement Shares to EAM constitutes a "related party transaction" under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101").
The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101, as provided in sections 5.5(a) and 5.7(1)(a) of MI 61-101, since the fair market value of the Settlement Shares issued, and the consideration paid, does not exceed 25% of the Company's market capitalization.
The Debt Settlement was reviewed and approved by the Company's independent directors.
About Everyday People Financial Corp.
Everyday People is founded on the belief that everyone deserves a second chance to financially reestablish themselves with access to affordable credit products. We are changing the way people manage money by enhancing our client services with our own affordable and specialized financial products and literacy programs. We're helping everyday people rebuild their financial health for generational wealth. Operating in the United Kingdom, Canada, and the United States of America, we have a workforce of about 500 people and our operations were first established in 1988,The company includes two main pillars of business: one pillar, EP Revenue Cycle Management operates under our Co-CEO RCM, Graham Rankin, and one pillar, EP Financial Services operates under our Co-CEO Financial Services, Barret Reykdal. We stand for creativity and entrepreneurship. Our combination of companies, products and services has been established to ensure we can fulfill consumers' financial needs and service them in a low-cost and effective manner.
For more information visit: www.everydaypeoplefinancial.com.
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 financial performance, results of operations, integration of the acquired businesses, and the business, plans, strategy 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, expectations and assumptions concerning the Company and the acquired businesses as well as other risks and uncertainties, including those described in the documents filed by the Company on SEDAR+ at www.sedarplus.ca. 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.
Disclaimer
This news release is not an offer of the securities for sale in the United States. The securities described in this news release have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act of 1933, as amended) absent registration or an exemption from registration. This news release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state in which where such offer, solicitation or sale would be unlawful.
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.
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