Mr. Barret Reykdal reports

EVERYDAY PEOPLE FINANCIAL SIGNS SHARE PURCHASE AGREEMENT TO ACQUIRE PASTDUE CREDIT SOLUTIONS LIMITED

Everyday People Financial Corp.'s wholly owned subsidiary, BPO Collections Ltd., entered into on July 19, 2023, a share purchase agreement with the shareholders of Pastdue Credit Solutions Ltd. (PDC) to acquire 100 per cent of the issued and outstanding shares in the capital of PDC.

PDC was founded in 2005 and is a market leader in revenue cycle management in the United Kingdom. PDC provides collection and reconnection services to U.K. market-leading companies, including energy, water, telecommunication, and financial service providers, as well as provides services to government departments and other organizations, making it one of the fastest-growing revenue cycle management companies in the U.K. As an innovator of technology, PDC launched a new product called Digital Affordability Assessment Solution (DAAS) in August, 2022. This system automates engagement with customers using artificial intelligence, assesses their affordability using tools such as open banking, and provides a suitable outcome which includes an affordable payment plan.

"We are very excited about acquiring PDC and their innovative DAAS technology, which will have a positive impact on our company's future revenue growth and profitability," said Barret Reykdal, chief executive officer of Everyday People. "This acquisition exemplifies our commitment to support our new strategic direction for our company by focusing on expanding our revenue cycle management division and generating shareholder value."

Details of the acquisition

Pursuant to the terms of the purchase agreement (based on the Bank of Canada rate on July 19, 2023, of one pound sterling equalling $1.7001), BPO will acquire the PDC shares in exchange for: (i) an aggregate cash payment by BPO to the shareholders on the closing date of the acquisition of $18.7-million, subject to adjustment in accordance with the terms of the purchase agreement; and (ii) the issuance by Everyday People to the shareholders on the closing date of an aggregate of 8.5 million common shares in the capital of Everyday People issued at a deemed price of $1 per Everyday People share. In addition, the shareholders may earn up to an additional $6.8-million in cash pursuant to the performance payments earnout provisions set forth in the purchase agreement, which are based on attaining a minimum of $5.4-million annually in EBITDA (earnings before interest, taxes, depreciation and amortization) by PDC within the five-year period following the closing of the acquisition. The company intends to finance the acquisition through equity and debt.

The completion of the acquisition is subject to conditions customary for transactions of this nature, including, but not limited to, the receipt of all requisite third party and regulatory approvals, including the acceptance of the TSX Venture Exchange and the Financial Conduct Authority (FCA) in the U.K. The acquisition is anticipated to close on or before Aug. 18, 2023. The acquisition is an arm's-length transaction, and no finder's fee is to be paid in connection with the acquisition.

About Everyday People Financial Corp.

Everyday People is a financial services company founded on the belief that everyone deserves access to affordable credit and the opportunity for home ownership. Through its technology-driven ecosystem and specialty credit solutions, the company manages credit and prepaid card programs, home ownership facilitation and payment management services. The company's mission is to help its clients be their best financial selves with credit products and services that help everyday people add value to their everyday lives.

We seek Safe Harbor.