Lendified Provides Update on the Sale of Secured Assets
Toronto, Ontario--(Newsfile Corp. - January 18, 2023) - Lendified Holdings Inc. (TSXV: LHI) (the "Company" or "Lendified") announced today that, further to the Company's news releases dated November 23, 2022 and December 15, 2022, the Company has been advised by its secured creditors of the sale of the secured assets that were seized by such creditors under the Personal Property Security Act (Ontario) for gross proceeds of $1,470,703.98. Such assets largely consist of loan portfolios. Following the sale of such assets by the secured creditors, the Company's subsidiaries remain indebted to such secured creditors in the aggregate of approximately $5,042,000. Eoghan Bergin, Chief Executive Officer and director of the Company, will be joining the purchaser of the assets in order to facilitate an orderly transition. In this regard, Lendified has agreed to provide, if required, certain transition services to the purchaser. Mr. Bergin will remain as an officer and director of Lendified. The sale of assets included certain intellectual property; as a result, the Company may ask for the approval of its shareholders to change its name at the next annual meeting of shareholders, if and when such meeting is called by the Company.
With the sale of these assets, the Company no longer has an operating business, and will not write any new business in relation to its former lending activities. The Company is in the process of transitioning its stock exchange listing to the NEX board of the TSX Venture Exchange. The Company will move to the next stage of discussions with its creditors to settle the remaining debt and determine solutions to enable the Company to carry on in some form in the future, including, among other things, the conversion of outstanding indebtedness of the Company and its subsidiaries. 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. 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. Additionally, in an effort to address the Company's liquidity situation, the Company has terminated its remaining workforce. The Company will update the market as such matters progress. Investors are cautioned to consider carefully the Company's liquidity situation when considering trading in the Company's securities.
For further information regarding Lendified, please contact:
Eoghan Bergin, Chief Executive Officer and Director
Neither the TSX Venture Exchange 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, whether the Company can successfully negotiate a solution to any additional debt owing to the secured creditors following the sale of the seized 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/151697