Tickers: XTSX:SFI, XTSX:SFI.H
Tags: #Finance, #Mining
Vancouver, B.C. - TheNewswire - August 19, 2019, - Solution Financial Inc. (TSXV:SFI) (the "Company") a leading provider of luxury automotive and yacht leasing in British Columbia, is pleased to announce that the Company's Board of Directors has authorized the payment of a quarterly dividend of $0.001. The first quarterly dividend is payable on September 16, 2019 to common shareholders of record as of the close of business on August 30, 2019. This dividend is a "non-eligible dividend" for Canadian income tax purposes.
"We recently completed a review of our tax planning and executive compensation strategies and are excited to announce the initiation of a quarterly dividend that will reward our shareholders and optimize our long-term operational goals," said Bryan Pang, Solution's Chief Executive Officer. "We're in a unique situation for a TSX-Venture company, in that we've been profitable for years before going public and our capital requirements are almost exclusively focused on growing our in-house leasing base. I'm committed to our long-term growth plans despite a slow down in the new immigrant and international student luxury leasing market in 2019. As a result, I have negotiated with the Company an arrangement to eliminate my salary and commission compensation in favour of a dividend. This will correspondingly increase our profitability and provide most of the cash flow necessary to pay an ongoing dividend to our shareholders. The initial dividend represents a 1% annual return to shareholders at a $0.40 per share price. Years of profitability as a private company will require the Company to pay out a total of $2,432,789 of non-eligible dividends before the Company will be able to pay eligible dividends which will further reduce the dividend taxes to shareholders," concluded Bryan Pang.
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 or other sub-prime lenders. 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
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.
Cautionary Statement Regarding Forward- Looking Statements
This press release contains "forward-looking information" as defined under applicable Canadian securities laws. This information includes, but is not limited to, statements concerning our objectives, our strategies to achieve those objectives, as well as statements made with respect to management's beliefs, plans, estimates, projections and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Forward-looking information is not a guarantee of future performance and is subject to numerous risks and uncertainties, including those described in this press release. Solution's primary business activities are both competitive and subject to various risks. These risks include market, credit, liquidity, operational and legal and regulatory risks and other risk factors including, without limitation: volume of new financings and mergers and acquisitions, dependence on key personnel and sustainability of fees. Other factors, such as general economic conditions, including interest rate fluctuations, may also have an effect on Solution's results of operations. Many of these risks and uncertainties can affect Solution's actual results and could cause its actual results to materially differ from those expressed or implied in any forward-looking information disclosed by management or on its behalf. For a description of additional risks that could cause our actual results to materially differ from our current expectations, see "Risk Management" and "Risk Factors" in the Fourth Quarter 2018 MD&A and "Risk Factors". These risks and uncertainties are not the only ones facing Solution. Additional risks and uncertainties not currently known to us or that we currently consider immaterial may also impair the operations of the Solution. Material assumptions or factors underlying the forward-looking information contained in this press release include, but are not limited to, "Fourth Quarter 2018 Financial Highlights" and "Liquidity and Capital Resources" sections of the Fourth Quarter 2018 MD&A. Although forward-looking information contained in this press release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information. Certain statements included in this press release may be considered a "financial outlook" for purposes of applicable Canadian securities laws, and as such the financial outlook may not be appropriate for purposes other than this press release.
The forward-looking information contained in this press release is made as of the date of this press release and should not be relied upon as representing Solution's views as of any date subsequent to the date of this press release. Except as required by applicable law, management and Solution's Board of Directors undertake no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
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