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Lendified Divests its Vancouver-based JUDI.AI Subsidiary to Group of Investors including Current CEO
Friday, October 23, 2020
Vancouver, BC, October 23, 2020--(T-Net)--Lendified Holdings Inc. (TSXV: LHI) announced this week the closing of the sale by its wholly-owned subsidiary Lendified Privco Holding Corporation (Subco) of all of the outstanding shares of Lendified Technologies Inc. (dba "JUDI.AI").
The Purchaser includes a group of investors, including among others, the current CEO of JUDI.AI (Gord Baizley).
Headquartered in Vancouver, JUDI.AI provides small business lenders with an AI driven analytics platform to support loan origination systems. The JUDI platform performs instant cash flow analysis, drives automated underwriting, and provides continuous monthly monitoring and real-time portfolio reporting.
The Purchaser will assume all of the liabilities and obligations of JUDI.AI.
Subco and JUDI.AI also entered into a licensing agreement where JUDI.AI will receive a royalty free license to use all loan performance data collected by Subco to date and for the five-year period subsequent to closing of the Transaction and Subco will receive a royalty free license to use JUDI.AI's financial categorization engine for the five-year period subsequent to closing of the Transaction.
The Transaction is part of Lendified Holdings overall strategy toward improving its financial condition as announced in the Company's press release dated June 25, 2020. The Transaction was designed to improve the Company's financial position as the Purchaser has agreed to assume the liabilities and obligations of JUDI.AI, relieving the Company of the financial burden of funding JUDI.AI's operations until it becomes cash positive.
About JUDI.AI
JUDI.AI provides small business lenders with an AI driven analytics platform to support loan origination systems. The JUDI platform performs instant cash flow analysis, drives automated underwriting, and provides continuous monthly monitoring and real-time portfolio reporting. We supplement traditional data sources like credit scores and financial statements with automated analysis of current banking data. Our proprietary categorization engine and risk detection logic are the results of 10 million+ banking transactions analyzed and in excess of $1 billion worth of small business loan applications evaluated. We reduce underwriting time from days to minutes, and provide a real time window into portfolio performance and health - driving efficiency, reducing risk and improving customer relationships.
About LENDIFIED HOLDINGS INC.
Lendified, a company located in Ontario, Canada, is a Canadian FinTech company operating a lending platform which provides working capital loans to small businesses across Canada through a wholly-owned subsidiary.
The Transaction is a non-arm's length transaction for purposes of the policies of the TSX Venture Exchange (the "TSXV") and applicable securities laws as the Purchaser group includes the Chief Executive Officer of JUDI.AI. The Company is relying on applicable exemptions from the valuation and shareholder approval requirements for a transaction of this nature provided such exemptions are available and granted to the Company by the TSXV.
Neither the TSXVE nor its Regulation Services Provider (as that term is defined in the policies of the TSXVE) 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, 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.
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