Propel Holdings

Canaccord Genuity Acts as Exclusive Financial Advisor and Lead Bookrunner to Propel Holdings on its US$71 Million Acquisition of QuidMarket and Concurrent C$115 Million Subscription Receipt Financing

Canaccord Genuity is pleased to announce that on September 26, 2024, its client, Propel Holdings Inc. (“Propel” or the “Company”) (TSX: PRL) announced that it had entered into a definitive agreement (the “Definitive Agreement”) to acquire Stagemount Limited (dba “QuidMarket”), a leading digital UK-based fintech lender specializing in credit for underserved consumers for cash consideration of US$71 million (the "Acquisition"). The Acquisition will accelerate Propel’s growth strategy through global expansion by providing a foothold in the underserved UK market with a best-in-class digital direct lending platform.

Concurrent with the execution of the Definitive Agreement, the Company also announced a bought deal offering of 4,186,000 subscription receipts (the “Subscription Receipts”) for gross proceeds of approximately C$115.1 million (the “Offering”), which subsequently closed on October 3, 2024 and included 546,000 Subscription Receipts issued pursuant to the full exercise of the over-allotment option. The net proceeds from the Offering will be used to fund the Acquisition.

The Acquisition is expected to close in either Q4 2024 or in early Q1 2025, subject to the satisfaction of customary closing conditions, including the receipt of applicable regulatory approvals, including the approval of the Financial Conduct Authority ("FCA"). Upon the closing of the Acquisition: (a) one common share of the Company will be automatically issued in exchange for each Subscription Receipt and (b) an amount per Subscription Receipt equal to the per-share cash dividends declared by the Company on the common shares to holders of record on a date during the period that the Subscription Receipts are outstanding, net of any applicable withholding taxes, will become payable in respect of each Subscription Receipt.

Propel is a fintech company building a new world of financial opportunity for consumers, partners, and investors. Propel's operating brands – Fora Credit, CreditFresh and MoneyKey – and their Lending-as-a-Service product line facilitates access to credit for consumers underserved by traditional financial institutions. Through its AI-powered platform, Propel evaluates customers in a more comprehensive way than traditional credit scores can. The Company’s revolutionary fintech platform has helped consumers access over one million loans and lines of credit and over one billion dollars in credit.

Launched in 2011, QuidMarket is a leading UK-based digital-only consumer lender specializing in providing short-term installment loans to individuals with limited access to traditional financial solutions. QuidMarket is committed to responsible lending, offering tailored financial support to help consumers manage unexpected expenses.

Canaccord Genuity acted as exclusive financial advisor to Propel in connection with the Acquisition and was lead bookrunner in connection with the Offering.