TORONTO, April 6, 2022 /CNW/ – Axis Auto Finance Inc. (“Axis” or the “Company”) (TSXV: AXIS), is pleased to announce that effective at market open the April 7, 2022, the common shares of the Company will trade on the Toronto Stock Exchange under the symbol “AXIS”. Effective at the end of trading on April 6, 2022the common shares will be delisted from the TSX Venture Exchange.
Company Update: Technology-Driven Growth
Axis is a fintech lender changing the way Canadians buy and finance used vehicles. Through its direct-to-consumer sales (“D2C“), DriveAxis.ca, users can choose their next used vehicle, customize financing terms and have the car delivered – all from the comfort of their own home. Technology solutions and superior service to its network of dealer partners.
D2C – the future of automotive retail
Launched in late 2021, DriveAxis.ca is a fully digital e-commerce solution that transforms the used car shopping experience. Customers have access to thousands of vehicles, can instantly get approved for financing, and have the car delivered, all without leaving their home.
As the US market has demonstrated, digital retailing is the next step in the evolution of car buying. Based on the successful launch of the Ontario pilot, Axis expects loans issued by D2C to become an important part of its portfolio in the future.
B2B originations continue to grow
Axis continues to set loan origination records through its Canadian network of dealer partners from coast to coast. At the end of 2021, the balance of the car loan portfolio was at a record level $197 million, an increase of 29% year-on-year. Axis expects loan originations to continue to accelerate as Canada comes out of the remaining COVID restrictions.
Massive and highly fragmented market
Used car retail is a market worth more than $40 billion in Canada with less than 1% e-commerce adoption. With 85% of retail deals funded, there are abundant opportunities for organic growth and follow-on acquisitions for Axis.
Fiscal strength enables continued growth
With $6 million in adjusted earnings for fiscal 2021, Axis is a profitable fintech company. Of the society $120 million the revolving debt facility provides ample room for portfolio growth and $15 million acquisition of a stake by Westlake Financial in November 2021 further strengthened the balance sheet.
About Axis Auto Finance
Axis is a fintech company changing the way Canadians buy and finance used vehicles. Through our direct-to-consumer portal, DriveAxis.ca, customers can choose their next used vehicle, arrange financing, and have the car delivered to their doorstep. Additionally, the company continues to expand non-preferential B2B auto lending by providing innovative technology solutions and superior service to its network of dealer partners. All Axis auto loans are handled by Equifax, resulting in over 70% of customers seeing a significant improvement in their credit rating. Further information on the Company is available at https://www.axisfinancegroup.com/investors-press-releases/.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release. Neither the Bourse nor its Regulation Services Provider (as that term is defined in the policies of the Bourse) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Axis Auto Finance Inc.
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