Nowlake Technology’s C$15 Million Investment in Axis

Torys acted for NowLake Technology on the transaction.

Axis Auto Finance Inc. announced a C$15 million strategic investment by Nowlake Technology, LLC, the fintech parent company of Westlake Financial and Nowcom, LLC. The transaction closed November 12, 2021.

Under the terms of a share purchase agreement, Nowlake purchased 30,000,000 common shares of Axis at a price of C$0.50 per share on a private placement basis and, immediately following closing of the transaction, owned approximately 23% of Axis’ issued and outstanding common shares. Proceeds of the investment will be used to develop and roll out additional digital loan origination channels, and general corporate purposes.

In addition to the share purchase agreement, Nowlake and Axis entered into an investment rights agreement pursuant to which the Axis Board of Directors will be expanded to eight members on closing of the offering and Nowlake will appoint a representative director. The investment rights agreement will also provide Nowlake with certain pre-emptive rights in respect of future equity offerings of Axis, as well as registration rights.

Axis Auto Finance is a fintech lender providing alternative used vehicle financing options to roughly 30% of Canadians that have credit scores in the non-prime range.

Nowlake Technology is the fintech parent company of Nowcom, LLC and Westlake Financial. Nowcom develops technology solutions for the automotive and financial services sectors, including for Westlake Financial. 

The Torys’ team included Don Bell (Picture), Frazer House and Anthony Bishop (corporate/securities).

Involved fees earner: Don Bell – Torys LLP; Anthony Bishop – Torys LLP; Frazer House – Torys LLP;

Law Firms: Torys LLP;

Clients: Nowlake Technology, LLC;

Sonia Carcano

Author: Sonia Carcano