Mr. Mehdi Moghareh reports

OCAL FINANCIAL OFFERS A DIGITAL INVENTORY OF 3,000+ VEHICLES VIA OPENLANE, WITH ZERO STANDING INVENTORY

Ocal Financial Inc. has described the asset-light sourcing model that gives it a digital inventory of more than 3,000 vehicles through Openlane while carrying zero standing inventory and why that structure is central to how the company manages risk and capital.

Ocal does not tie up cash in cars. It sources each vehicle only after the customer is approved, is matched to the specifications and the budget the approved deal allows. That single choice, sourcing to a confirmed approval rather than stocking a lot and hoping to sell it, removes one of the biggest risks in the traditional car business. A traditional dealer buys inventory on borrowed money, pays to hold it, and takes a loss when a vehicle sits too long or when used car prices fall. Ocal carries none of that.

Most of Ocal's supply comes from the Openlane auction network, at locations including Toronto, Vancouver and Calgary. That network works as Ocal's digital inventory: a large, constantly refreshed pool the company can match to any approved deal, without owning a single unit in advance. Ocal has its own representatives at key Openlane sites to review units, negotiate and run the bidding, so the company controls quality and price rather than leaving it to a third party.

A network of dealer and wholesaler partners covers specialty vehicles and regional gaps, and reconditioning and inspection run through partners to a set standard before every delivery. The customer is not buying an unknown car sight unseen; each vehicle is checked and reconditioned to a consistent standard before it arrives.

It is worth being concrete about the risk this removes. A dealer that buys 50 vehicles is betting it can sell those specific 50 at a profit before holding and financing costs eat the margin. If the market softens or tastes shift, some of those vehicles become losses. Ocal never places that bet, because it does not buy a vehicle until a customer with an approval is waiting for it.

The auction model also gives Ocal reach a single lot could never match. A physical dealership can only show the vehicles it owns. Ocal can source from a national pool that refreshes constantly, so a customer is far more likely to get the specific vehicle they want than to settle for what happens to be in stock. Wider selection and lower risk usually pull against each other in this industry. Sourcing to a confirmed approval is how Ocal gets both.

Ocal calls the result a new car experience with used car economics. The customer chooses the model, trim, colour, features and budget, and Ocal finds a vehicle to match, then delivers it to their door. The choice feels like ordering a new car, at the price of a well-sourced used one, without a single visit to a lot.

Ocal does not stock cars. It stocks access. The investor case for this structure is straightforward. Because Ocal holds zero standing inventory, it is never forced to discount aging stock, and it is not exposed to the swings in used vehicle prices or the floorplan financing costs that weigh on inventory-heavy businesses. Its margin comes from financing and services rather than from marking up cars, and its capital is free to finance growth rather than sit in a parking lot.

It is also what makes the model portable. Entering a new market does not require buying a lot of inventory or building a dealership. It requires access to the auction network and the partners, which already exist across the country. That is a large part of why Ocal believes the model can travel from one market to the next without the capital a traditional expansion would demand.

"Because we source to a specific approval, we are never pushing whatever happens to be sitting on a lot," said Mehdi Moghareh, chief executive officer of Ocal. "The customer gets the choice, and the business takes on no inventory risk. That is the whole point of the model.

"More than 3,000 vehicles are available to us at any time, with none of our capital tied up in them," added Mr. Moghareh. "That is what lets us grow without a warehouse full of risk."

About Ocal Financial Inc.

Ocal Financial is an asset-light, artificial-intelligence-native virtual automotive dealership and vehicle finance platform. Operating remotely and licensed in British Columbia and Alberta, Ocal moves customers from application to approval, vehicle matching, digital contracting and delivery in a single workflow. Rather than carrying owned inventory, Ocal sources each vehicle only after a customer is approved, drawing on the Openlane auction network and select partners. Ocal earns revenue from vehicle sales and related finance and protection products, and does not hold consumer loans or assume credit default risk. Its technology stack, which includes workflow orchestration, a lender routing credit intelligence system, voice AI and a centralized business intelligence system, is built specifically for automotive transactions.

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