Dealnet Announces Rebounding Originations
TORONTO, July 08, 2020 (GLOBE NEWSWIRE) — Dealnet Capital Corp. (“Dealnet” or the “Company”) (TSX VENTURE: DLS) announced today that organic originations of finance receivables for the six months ended June 30, 2020 were $20.5 million, a decline from originations of $25.4 million in Q1 and Q2 2019. Organic originations of finance receivables for the quarter ended June 30, 2020 were $6.4 million (Q2 2019 – $12.9 million). The originations remain at a similar high credit quality and yield as the prior periods.
As announced in Q1 2020, the most significant financial impact of COVID-19 on Dealnet is on its originations from its dealer base.“Business at our dealers is picking up as COVID-19 restrictions across Canada are eased and consumers regain confidence to make major purchasing decisions,” said Brent Houlden, Dealnet’s Chief Executive Officer. “April was the low point when originations dipped to below $1 million, while June’s originations rebounded to over $3.6 million.”About Dealnet Capital Corp.Dealnet is the parent company of subsidiaries operating in two market segments, consumer finance and call centre. The Company operates in the consumer finance segment in Canada through EcoHome Financial Inc. (“EcoHome”) and its call centre segment under the One Contact banner (“One Contact”).EcoHome is a specialty finance company serving the $20 billion Canadian home improvement finance market. EcoHome develops and supports consumer sales financing programs for approved dealers and distributors under agreements with original equipment manufacturers (OEMs) that supply a wide range of home improvement products to the retail market. Through a dealer network, EcoHome underwrites, originates, funds and services the prime quality loans and leases that homeowners need to finance the acquisition and installation of capital assets that improve the quality, comfort and safety of their homes. One Contact offers customer support services to third-party institutions across Canada and the U.S. and to EcoHome.For additional information please visit www.sedar.com.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.Forward-looking StatementsThis news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s Management’s Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.