Navigator Acquisition Corp. Announces Letter of Intent for Qualifying Transaction to Acquire Arifmetika LLC

New York, New York--(Newsfile Corp. - September 2, 2021) - Navigator Acquisition Corp. (TSXV: NAQ.P) ("Navigator" or the "Company") is pleased to announce that it has entered into a binding letter of intent ("LOI") dated August 30, 2021, with PJSC "ORG" ("ORG"), a public joint-stock company duly incorporated under the laws of Russian Federation, which will result in the acquisition by Navigator of the wholly-owned subsidiary of ORG, MCC "Arifmetika" LLC ("Arifmetika"). The LOI states that ORG shall incorporate a holding company ("HoldCo") which shall hold 100% of the issued and outstanding shares of Arifmetika. The holders of the issued and outstanding shares of HoldCo, or the issued and outstanding shares of Arifmetika, as applicable, will exchange all of the issued and outstanding securities of Arifmetika in exchange for securities of the resulting issuer (the "Transaction").

The Transaction is intended to constitute Navigator's Qualifying Transaction pursuant to Policy 2.4 (Capital Pool Companies) of the TSX Venture Exchange ("TSX-V") Corporate Finance Manual. In connection with the Transaction, the Company intends to apply to list its common shares on the Toronto Stock Exchange. The Transaction is subject to the approval of the TSX-V and Toronto Stock Exchange, execution of a definitive agreement and other closing conditions customary for a transaction of this nature. Navigator, upon completion of the Transaction, is referred to in this news release as the "resulting issuer".

Arifmetika is a leading microlending company operating in Russia for more than 11 years. Further information about Arifmetika, including financial information, will be provided in a subsequent news release. Arifmetika's principal assets, equal to approximately C$44,311,087.47 based on its audited accounts for the year ended December 31, 2020. Arifmetika's current liabilities, equal to approximately C$2,478,084.38 based on the audited accounts, primarily comprise interest-bearing loans and borrowings. As of the date of the audited accounts, Arifmetika had revenues of C$46,795,923.16 and had net revenue equal to approximately C$10,953,527.33.

Transaction Structure

The LOI contemplates that the holders of the issued and outstanding shares of HoldCo or Arifmetica, as the case may be, will exchange such shares for common shares in the capital of the resulting issuer, resulting in the issuance by the resulting issuer of approximately 224,927,143 common shares.

Upon completion of the Transaction, the resulting issuer will hold 100% of the issued and outstanding securities of Arifmetika and it is anticipated that the resulting issuer will apply to list on the Toronto Stock Exchange, in addition to changing its name and trading symbol to a name and trading symbol acceptable to Arifmetika and the applicable regulatory authorities. The LOI was negotiated at arm's length and the parties are currently negotiating the terms of a definitive agreement.

Upon completion of the Transaction, the resulting issuer is expected to have 241,857,143 common shares outstanding (undiluted).

Certain of the resulting issuer shares issued to the principals of Arifmetika that will become management of the resulting issuer will be subject to escrow in accordance with Toronto Stock Exchange policies.

Management and Board of Directors

Upon completion of the Transaction, it is expected that certain current members of Navigator's board of directors and certain senior officers will resign, and the board of directors and management team and the resulting issuer will be reconstituted to comprise of five members to be nominated by ORG and two members to be nominated by Navigator. Navigator will provide further details regarding the proposed insiders of the resulting issuer in due course.

Conditions of Transaction

Upon completion of the Transaction, the parties anticipate that the resulting issuer will be listed on the Toronto Stock Exchange.

Completion of the Transaction will be subject to certain conditions, including, but not limited to, (a) receipt of all necessary approvals of the boards of directors of Navigator and Arifmetika; (b) approval of the Transaction by the TSX-V as Navigator's qualifying transaction; (c) Arifmetika satisfying the initial listing requirements set by the Toronto Stock Exchange; and (d) the parties' entry into a definitive agreement in furtherance to LOI.

Sponsorship

Sponsorship of a Qualifying Transaction is required by the TSX-V unless the transaction qualifies for an exemption from the sponsorship requirement. Navigator intends to apply from a waiver from the sponsorship requirements. However, there is no assurance that such waiver will be obtained.

Additional information

Additional information identifying risks and uncertainties is contained in filings by Navigator with the Canadian securities regulators, which filings are available on its SEDAR profile.

About MCC Arifmetika LLC

Arifmetika is a leading microlending company operating in Russia for more than 11 years.

It uses modern algorithms to manage risks for providing its clients with customized solutions to meet their needs. Its management team manages business processes and consists of 300 professionals, including key specialists who have many years of experience in the microfinance sector.

Arifmetika is currently developing a high-tech platform for disbursing online loans and is a leader in terms of the number of service points among federal companies in the microfinancing market. It manages more than 600 service points in 258 localities of Russia. Arifmetika has its own IT infrastructure, including three data centers in Moscow, Khabarovsk, and Novosibirsk. It uses artificial intelligence and big data solutions to analyze the customer base and develop new products and blockchain to protect personal data.

ON BEHALF OF THE BOARD

NAVIGATOR ACQUISITION CORP.

Kyle Shostak
President, Chief Executive Officer and Director

For further information contact:

Kyle Shostak
President, Chief Executive Officer and Director of Navigator Acquisition Corp.
(212) 909-5870 (office), (917)-514-1310 (mob)

Statements in this press release regarding Navigator which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as the completion of the proposed Qualifying Transaction. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties such as the risk that the closing may not occur for any reason. Forwarding-looking statements in this news release include the statements that: (i) the parties anticipate that the resulting issuer will be listed on the Toronto Stock Exchange; (ii) describes the terms of the financing.

Actual results in each case could differ materially from those currently anticipated in such statements due to factors such as: (i) the decision to not close the Qualifying Transaction for any reason, including adverse due diligence results and TSX-V refusal of the Qualifying Transaction; (ii) adverse market conditions; and (iii) the need for additional financing. Except as required by law, the Company does not intend to update any changes to such statements.

Completion of the Transaction is subject to a number of conditions, including but not limited to, TSX-V acceptance and if applicable pursuant to TSX-V requirements, majority of the minority shareholder approval. Where applicable, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

The TSX-V has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release.

Neither TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V accepts responsibility for the adequacy or accuracy of this release.

NOT FOR DISSEMINATION IN THE UNITED STATES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/95127

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