Axis Auto Finance Inc. closed a private placement financing of convertible unsecured subordinated debentures with Westlake Financial Services and Nowcom Corp.
Pursuant to a strategic partnership, Westlake and Nowcom agreed to invest up to $5 million into Axis on a private placement basis to allow the latter to extend its product offering to cover the entire nonprime credit market in Canada.
The company issued $2.0 million of debentures and an additional $3.0 million is available for future draw at its option. Each debenture can be converted at a price of 45 cents per share before maturity or redemption. The company also issued 5,866,666 common share purchase warrants in connection with the offering. The debentures have an annual interest of 7.5% and are set to mature June 30, 2023.
Axis can redeem the debentures on and after June 30, 2022, and before the maturity date, under certain conditions.
The company will use the net proceeds from the private placement for working capital purposes.
INFOR Financial Inc. served as Axis' exclusive financial adviser in the offering.
