Dealnet Provides Update on EcoHome Acquisition and Integration
– Momentum Public Relations – March 29, 2016
Dealnet Capital Corp. (DLS:tsxv), is pleased to provide an update to inform shareholders and the market on its recent activities including those related to the acquisition of EcoHome Financial (“EcoHome”) which was completed on February 18, 2016.
Integration and Growth of Consumer Finance Business
The Company is pleased to announce that the integration of EcoHome into Dealnet’s existing consumer finance business is progressing well. Our collective sales team is focused on growing originations in the HVAC and home improvement sector. The physical operations of EcoHome have now moved to the offices of Dealnet’s consumer finance business. The Company also continues to invest in innovative technology around its mobile lending platform to enhance the consumer and dealer experience.
Dealnet’s consolidated loan portfolio as of the end of February 2016 now stands at approximately $80 million and the Company continues to originate a significant volume of high quality leases and loans weekly.
The Company continues to attract high quality dealers and has dozens in various stages of on-boarding. Earlier in March, the Company signed a five-year exclusivity agreement with a large HVAC dealer in Ontario who is incented to originate in excess of $15 million per year over the term of the agreement. The Company is also in discussions with a number of strategic partners, including industry associations and equipment manufacturers that have the potential to drive significant originations of finance products. The Company expects to close additional large volume wins throughout 2016.
As part of the EcoHome acquisition, existing EcoHome facilities were migrated with the transaction providing EcoHome and Dealnet with an attractive cost of capital, reducing Dealnet’s overall cost of underwriting. The Company is currently in advanced discussions with a number of additional lenders and is negotiating underwriting capacity to support the expected growth in our consumer finance business. The Company expects to bring these additional facilities online over the coming months and will provide further updates in due course.
Filing of Business Acquisition Report
The Company also announces that it has filed its Business Acquisition Report related to the EcoHome acquisition which is available on SEDAR.
Forward Looking Statements
This news release contains certain “forward-looking information” within the meaning of applicable securities law including statements regarding the Company, integration of the EcoHome business, loan origination volumes and growth, strategic partnerships and underwriting capacity. Forward looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking information is based on the opinions, assumptions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information including the risks relating to the challenges in integrating the business and product lines of Dealnet and EcoHome, general risks relating to the consumer finance industry and many other factors beyond the control of the Company. For a description of these and other risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s Management’s Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.
About Dealnet Capital Corp.
Dealnet is an engagement enabled consumer finance company that is initially focused on home improvement finance solutions including heating ventilation and air conditioning financing and leasing. Dealnet leverages its large scale customer service and engagement technology platform to attract home improvement dealers by providing front and back office services to them resulting in dealer origination growth.
For additional information please visit www.sedar.com.