NextPoint Financial Inc. Acquires Community Tax LLC for US $ 90 Million in Cash and Stock, Adding Tax Debt Resolution and Related Services to Its Growing Line of Financial Services Offerings | Texas
CHICAGO, IL and HURST, TX, December 31, 2021 / CNW / – NextPoint Financial Inc. (TSX: NPF.U) (OTC Pink: NACQF), (“NextPoint” or the “Company”), an all-inclusive financial services destination offering tax services, loans and other solutions to underserved consumers and small businesses, today announced that it has completed the acquisition of ChicagoCommunity Tax LLC, (“Community Tax”), a rapidly growing leader in tax debt settlement and other tax related services for approximately $ 90 million in cash and shares, subject to certain closing adjustments. The transaction is expected to have a positive impact on NextPoint’s earnings in 2022.
The purchase was funded by US $ 70 million in borrowings under a new credit facility entered into by a newly incorporated subsidiary of NextPoint which owns all of Community Tax’s interests. NextPoint also issued the equivalent of $ 20 million ordinary shares of NextPoint, priced at $ 4.6881 per share, to the former owners of the community tax.
Founded in 2010, Community Tax has quickly established itself as a leader in the tax debt resolution industry by leveraging a two-phase approach to resolving outstanding tax issues. Community Tax is a bilingual organization, with English and Spanish speaking team members in all disciplines of the organization. Community Tax has offices at Chicago, Jacksonville, and Porto Rico. Jacob Dayan, Esq., co-founder and CEO of Community Tax, has joined NextPoint as Chief Revenue Officer and will be responsible for monetization strategies across the company.
Brent Turner, NextPoint CEO commented, “Community Tax is a perfect complement to the NextPoint platform and meets the needs of our clients. In early 2021, we started offering their tax resolution services to Liberty Tax clients through our franchisees. The program was well received and ultimately led to today’s purchase which positions us as one of the largest tax debt settlement companies in the United States. . “
About NextPoint Financial Inc. (www.nextpointfinancial.com)
NextPoint Financial Inc. is an all-inclusive marketplace for financial services enabling hard-working and underserved consumers and small businesses. NextPoint was formed by the July 2021 combination of Liberty Tax, a leading provider of tax preparation services, with LoanMe, an online lender and loan distributor.
This press release may contain “forward-looking statements” (as defined by applicable securities laws). These forward-looking statements relate to future events or future performance, in particular with regard to the expected impact of the community tax on the profits of the company, the integration of the community tax, the objectives and priorities of the company for the financial year 2021 and beyond, and additional strategies or actions relating to the Company, business operations, financial performance and the condition of the Company.
These forward-looking statements reflect the current beliefs of management and are based on information currently available to management. In some cases, forward-looking statements may be identified by words such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “Predict”, “potential”, “continue”, “target”, “intend”, “could” or the negative of these terms or other comparable terminology. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and many factors could cause actual events or results to differ materially from the results discussed in forward-looking statements. In evaluating forward-looking statements, readers should specifically consider various factors that could cause actual results to differ materially from any forward-looking statement. These factors include, but are not limited to, general market and economic conditions, the Company’s ability to integrate community tax into its operations, the ongoing COVID-19 pandemic, and the risks and uncertainties discussed in the section titled “Risk factors” in the final prospectus of the Company dated June 3, 2021.
The forward-looking statements contained in this press release are presented for the purpose of helping investors understand the business and strategic priorities and objectives of the Company at the periods indicated and may not be appropriate for other purposes. The forward-looking statements contained in this press release are not guarantees of future performance and, although the forward-looking statements are based on certain assumptions which the Company considers to be reasonable, actual events and results could differ materially from those expressed or under – understood by forward-looking statements. made by the Company. Prospective investors are urged to carefully consider these and other factors when making decisions about the Company and not to place undue reliance on forward-looking statements. Circumstances affecting the Company can change quickly. Except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE NextPoint Financial Inc.