Arizona Tribune - AmeriTrust Provides Lease and Loan Origination Update

The Company has received three non-binding term sheets ("Terms Sheets") to fund new and used vehicle lease and loan originations from U.S.-based financial institutions. Two of the financial institutions are national banks, and the third institution is an investment management firm with over USD $50 billion in assets under management.

AmeriTrust's CEO Jeff Morgan commented: "We have been working diligently over the past year to position AmeriTrust to be able to obtain Term Sheets from prospective partners. I am pleased that we are now working towards finalizing a combination of both warehouse and flow facilities (the "Funding Facilities") with the first of multiple financial institutions."

If completed on the terms set out in the Term Sheets, the Company estimates that the aggregate amount of the potential funding from these facilities is up to USD $1 billion.

The Term Sheets set out that the Funding Facilities are designed to allow for private sale or securitization takeouts. The Company anticipates that as it is able to secure a "takeout" periodically like its industry competitors have achieved, it will have origination capacity of up to USD $1 billion per annum.

CEO Jeff Morgan added, "While we have been negotiating with many prospective partners, Blake Kirk, AmeriTrust's COO, and his team have been busy ensuring that all operational and administrative functions will be in place so that once funding capital has been secured, AmeriTrust will be able to provide lease and loan financing to new and used vehicle owners in a short period of time. Troy Hocker, the Company's CRO, has been working with his team to ensure that direct and indirect sales channels have the tools they need for production immediately. The team is working to re-qualify each of our 962 "Active Dealer Partners" and to re-activate them in our systems to start submitting applications. As of today, these dealer partners have submitted more than two hundred applications in the last month for approval. My team's goal is to finalize the Funding Facility agreements and begin approving and funding new leases and loans in the fourth quarter of 2025. Thanks to the patience and commitment of our shareholders and investors, AmeriTrust should see strong growth in 2026."

The Term Sheets contemplate the Company raising equity and/or convertible debt to support the respective Funding Facilities. The amount of additional capital that will be required is dependent upon the amount of the Funding Facilities.

The completion of all Funding Facilities is subject to finalization of definitive legal documentation and customary closing conditions. The Company cautions that there can be no assurance that the Funding Facilities will be entered into on the current terms set out in the Term Sheets, or at all.

The Company will keep shareholders informed of the timing and amount of any potential equity or debt financings, and the continued finalization of definitive agreements.

About AmeriTrust Financial Technologies Inc.

AmeriTrust Financial Technologies Inc., listed on the TSX Venture Exchange, OTCQB, and Frankfurt markets, is a finance solution and fintech provider disrupting the automotive industry. AmeriTrust's integrated, cloud-based transaction platform facilitates transactions amongst consumers, dealers, and funders. AmeriTrust's platform is being made available across the United States.

For further information, please visit the AmeriTrust website or contact:

Shibu Abraham, CFO
E: [email protected]
P: 800-600-6872

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

Forward-Looking Information

Certain information included herein is forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information may include statements regarding the objectives, business strategies to achieve those objectives, expected financial results (including those in the area of risk management), economic or market conditions, and the outlook of or involving AmeriTrust, its subsidiaries and its businesses. Such information is typically identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "plan", "forecast", "future", "outlook, "guidance", "may", "project", "should", "strategy", "target", "will" or similar expressions suggesting future outcomes.

Forward-looking information is provided for the purpose of providing information about management's expectations and plans about the future and may not be appropriate for other purposes. Forward-looking information herein include the amount the execution of the Funding Facilities, the anticipated financial benefits of the Funding Facilities, the amount of funding to be secured by the Funding Facilities and estimated origination capacity, the ability to obtain equity, debt or mezzanine financing and are based on various assumptions and expectations that AmeriTrust believes are reasonable in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Those assumptions and expectations are based on information currently available to AmeriTrust, including information obtained from third party industry analysts and other third-party sources, and the historic performance of AmeriTrust's businesses. Such assumptions include the timing of receipt of necessary regulatory approvals, anticipated financial performance, current business and economic trends, the amount and timing of future dividends paid by AmeriTrust, business prospects, utilization of tax basis, regulatory developments, currency, exchange and interest rates, commodity prices relating to the automotive industry, trading data, cost estimates, our ability to obtain financing on acceptable terms, and statements regarding net working capital, anticipated operational and capital expenditure reductions, the length and impact of COVID-19 on AmeriTrust's businesses and customers and capital expenditure requirements of AmeriTrust, the assumptions set forth under the "Financial Outlook" sections of our MD&A. The forward-looking information is also subject to the risks and uncertainties set forth below.

By its very nature, forward-looking information involves numerous assumptions, risks and uncertainties, both general and specific. Should one or more of these risks and uncertainties materialize or should underlying assumptions prove incorrect, as many important factors are beyond our control, AmeriTrust's actual performance and financial results may vary materially from those estimates and intentions contemplated, expressed or implied in the forward-looking information. These risks and uncertainties include those relating to incorrect assessments of value when making acquisitions, increases in debt service charges, the loss of key personnel, the anticipated impact of the COVID-19 pandemic, the impact of increased inflation and the expected economic recession, fluctuations in foreign currency and exchange rates, inadequate insurance coverage, liability for cash taxes, counterparty risk, compliance with environmental laws and regulations, reduced customer demand, operational risks involving our facilities, force majeure, labour relations matters, our ability to access external sources of debt and equity capital, and the risks identified in our MD&A under the heading "Risk Factors". The preceding list of assumptions, risks and uncertainties is not exhaustive.

When relying on our forward-looking information to make decisions with respect to AmeriTrust, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Any forward-looking information is provided as of the date of this document and, except as required by law, AmeriTrust does not undertake to update or revise such information to reflect new information, subsequent or otherwise. For the reasons set forth above, investors should not place undue reliance on forward-looking information.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.

SOURCE: AmeriTrust Financial Technologies Inc.

View the original press release on ACCESS Newswire

D.Johnson--AT