Toronto, Ontario--(Newsfile Corp. - December 15, 2022) - Lendified Holdings Inc. (TSXV: LHI) (the "Company" or "Lendified") announced today that, further to the Company's news release dated November 23, 2022, certain secured creditors of its wholly-owned subsidiaries, Lendified Privco Holding Corporation, Lendified Inc, Castle Return Inc. and WPCFP SPV Inc. (collectively, the "Subsidiaries"), will be appointing a receiver over all of the assets of the Subsidiaries and initiating proceedings under the Bankruptcy and Insolvency Act (Canada) and the Personal Property Security Act (Ontario) to seize the Subsidiaries' assets comprising the security under the loan agreements with such secured creditors (the "Loans"). Such assets largely consist of loan portfolios.
As previously announced, the Subsidiaries are not in a position to repay the Loans and it is not expected that the fair market value of the assets will be sufficient to repay the Loans and as a result, Lendified and the Subsidiaries will continue to be subject to certain significant obligations to the secured creditors pursuant to the Loans.
As a result, the Company will continue to administer any outstanding working capital loans it has extended to its clients but will halt writing any new business for the time being. The Board of Directors remains in place and is committed to steering the Company through these challenges; however, there can be no assurances it will be able to do so. It is not expected that the Company can continue as a going concern in its present form without an infusion of capital. There is significant doubt as to whether the Company will be able to source any such needed capital. The Company continues to engage in discussions with its creditors to determine if solutions can be found to enable the Company to carry on in some form in the future. In order to do so, the Company will need to restructure or otherwise settle its significant outstanding debt that will remain following the sale of its assets. There can be no assurances that it will be able to do so, or that such discussions will be successful, either on terms acceptable to the creditors and to the Company or at all. Additionally, in an effort to address the Company's liquidity situation, the Company has reduced its workforce. Investors are cautioned to consider carefully the Company's liquidity situation when considering trading in the Company's securities.
The Company also announces that following discussions with the TSX Venture Exchange (the "TSXV"), it proposes to transfer its exchange listing of its common shares to the NEX board of the TSXV from its current Tier 2 listing. The Company will provide a further update with respect to the anticipated date that its common shares will commence trading on the NEX and any changes to its trading symbol.
The Company's current directors are Eoghan Bergin, Perry Dellelce and Chris Tambakis. In addition to the Subsidiaries, the Company's other, direct and indirect, wholly-owned subsidiaries include Lendified I.N. Funding Inc., Vault Circle Inc. and Loanworthy Inc., each of which is not subject to the receivership proceedings with the secured creditors described above and each of which is non-operational.
ABOUT LENDIFIED HOLDINGS INC.
Lendified, a company located in Ontario, Canada, is a Canadian FinTech company operating a lending platform which provides working capital loans to small businesses across Canada through a wholly-owned subsidiary.
Further Information
For further information regarding Lendified, please contact:
Eoghan Bergin, Chief Executive Officer and Director
1-844-451-3594
eoghan.bergin@lendified.com
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including, but not limited to, the return (if any) the sale of the secured assets will bring to the creditors and whether the Company can successfully negotiate a solution to any additional debt owing to the secured creditors following the seizure of the assets, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industries in which the Company participates; others are more specific to the Company. The Company's ongoing quarterly filings should be consulted for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise, other than as required by law.
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