Solution Financial Announces $5 Million Unsecured Convertible Debenture Financing and Expansion into Ontario

Vancouver, British Columbia–(Newsfile Corp. – January 4, 2021) – Solution Financial Inc. (TSXV: SFI) (the “Company“) is pleased to announce a non-brokered financing up to $5,000,000 principal amount convertible debentures (“Debentures”). The Debentures will mature on the second anniversary of the date of issuance (the “Maturity Date”) and bear interest at a rate of 5.00% per annum, calculated and paid semi-annually. The principal amount and any accrued and unpaid interest on the Debenture may be convertible into Common shares, in whole or in part, at any time following the Issue Date but on or before the Maturity Date at a conversion price of $0.50 per Share.

The Company plans to use the proceeds of the financing to support the Company’s expansion plans into Ontario. The Company recently received its license to operate in Ontario from Ontario’s Vehicle Sales Regulator (“OMVIC”).

“Our luxury leasing offerings remained steady throughout 2020 despite the COVID19 pandemic,” said Bryan Pang, CEO. “Although the number of international students enrolling and returning in September was down as much as 58% according to Stats Canada, our monthly leasing volumes remained over $2.6M per month for fiscal 2020 ending October 31, 2020, with a notable uptick to $2.8M per month for the final fiscal quarter of 2020. We also saw this as an opportunity to expand our offering into Ontario after the successful expansion into Alberta in early 2020. Our proprietary leasing system is perfect for market expansion as it requires very little overhead to support adoption and will help Ontario luxury automobile dealers sell more vehicles, faster and easier than with traditional lending systems and lease offerings,” concluded Bryan.

The offering of the Debentures is subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

The Debentures will not be listed or posted for trading on any exchange.

About Solution Financial

Solution Financial was incorporated under the provisions of the Business Corporations Act (British Columbia) in 2004 and specializes in sourcing and leasing luxury and exotic vehicles, yachts and other high value assets. Solution works with a select group of automotive and marine dealerships providing lending solutions to clients who cannot obtain leasing terms with traditional Canadian financial institutions. Typical customers include new immigrants, business owners and international students. Solution Financial provides a unique leasing experience whereby it partners with its clients to help them navigate the challenges of acquiring, insuring, maintaining and upgrading vehicles and luxury assets in Canada.

For further information please contact Sean Hodgins at (778) 318-1514.

ON BEHALF OF THE BOARD

(signed) “Bryan Pang“
Brian Pang
President, CEO and Director

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

Information set forth in this news release contains forward-looking information and statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The terms and phrases “goal”, “commitment”, “guidance”, “expects”, “would”, “will”, “continuing”, “drive”, “believes”, “indicate”, “look forward”, “grow”, “outlook”, “forecasts”, “intend”, and similar terms and phrases are intended to identify these forward-looking statements, including but not limited to statements regarding the completion of Debenture offering, receipt of approvals related to the Debenture offering and the use of proceeds thereof. The Company cautions that all forward-looking information and statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company’s control. Such factors include, among other things: risks and uncertainties relating to the Company’s ability to complete the proposed Debenture offering. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.

This news release does not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Debentures and the shares which may be issued on exercise thereof have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

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