Business
Solution Financial Reports Record Increase for In-House Lease Transactions
(via TheNewswire) Vancouver, B.C. / TheNewswire / November 13, 2018 - Solution Financial I...
About this update from Solution Financial Inc.
[{"type":"text","content":"Solution Financial Reports Record Increase for In-House Lease Transactions(via TheNewswire)\n\n \nVancouver, B.C. / TheNewswire / November 13, 2018 - Solution Financial Inc. (TSX-V: SFI) (the \"Company\") is pleased to provide an update on key business metrics of its in-house lease portfolio. The Company finished the fiscal year with over $10.2 Million of in-house lease transactions representing a 98% increase over the prior year's $5.2 Million of in-house lease transactions. \"We are happy we reached $10 Million for the year representing 125 luxury and exotic cars and yachts being leased compared to only 92 last year. This increase brings our total leased asset portfolio to over $12 Million generating an average effective interest rate of 14.67%.\" said Bryan Pang, Solution's CEO. \"Despite a slowdown in the Vancouver luxury car market in 2018 due to the higher provincial sales taxes on luxury vehicles that came into effect in April 2018, we continued to see increasing demand for our leasing alternatives. The increase in the in-house portfolio is attributable to the deployment of capital raised in the course of the Company public offering which was completed in the summer of 2018. The capital raised has allowed the in-house lease portfolio to grow much faster and we're excited about the potential to expand into other key markets across Canada that are under serving the luxury auto industry.\" \n\n\n \nThe increase in in house leases represents record growth in the in-house portfolio and demonstrates the value of capital when deployed in the business.\n\n \n \nWith this goal in mind, the Company is closing the previously announced 3.99% convertible debenture financing and announcing a non-brokered financing up to $5,000,000 principal amount convertible debentures (\"Debentures\"). The Debentures will mature on the second anniversary of the date of issuance and bear interest at a rate of 5% per annum, calculated and paid semi-annually. The principal amount and any accrued and unpaid interest on the Debenture may be convertible into Common shares, in whole or in part, at any time following the Issue Date but on or before the Maturity Date at a conversion price of $0.50 per Share. \n\n \n \nThe proceeds of the financing will be used to expand the Company's portfolio of in-house leases. \n\n \n \nThe offering of the Debentures is su...