Mr. Clive Kinross reports

PROPEL COMPLETES ACQUISITION OF QUIDMARKET

Propel Holdings Inc. has successfully completed its previously announced acquisition of Stagemount Ltd. (doing business as QuidMarket), a leading digital United Kingdom based fintech (financial technology) lender specializing in credit for underserved consumers. The final purchase price was $71-million (U.S.), excluding closing adjustments, and was paid all in cash.

"The closing of the acquisition of QuidMarket is a critical step in our journey to become a global leader in building financial opportunity. A leading U.K. fintech lender, QuidMarket is focused on the 20 million underserved consumers in the U.K. Backed by Propel's AI-powered [artificial intelligence] technology, financial and operational expertise, and capital resources, we believe QuidMarket will be able to accelerate its growth while broadening access to credit for more underserved consumers," said Clive Kinross, chief executive officer of Propel.

Management believes that the acquisition will be immediately accretive to Propel's 2024 and 2025 adjusted earnings per share, on a pro forma basis, and excluding transaction costs and before any synergies.

"I want to officially welcome the QuidMarket team to Propel. Together, we will build a U.K. leader," Mr. Kinross added.

"We have ambitious plans for the U.K., and QuidMarket is a critical first step," said Sheldon Saidakovsky, chief financial officer of Propel and the executive in charge of leading the QuidMarket integration. "In advance of the closing, we outlined a multiphased integration plan for QuidMarket. Initially, we will focus on building financial and operational infrastructure that mirrors our own. Once complete, we will begin to accelerate QuidMarket growth at both the top and bottom line. Laying the foundation to grow QuidMarket into the U.K.'s market leader will be a key focus as we head into 2025."

Acquisition financing and subscription receipt conversion

The $71-million (U.S.) purchase price for the acquisition was financed from the net proceeds of Propel's previously announced $115-million bought deal offering of subscription receipts, which closed on Oct. 3, 2024.

Upon closing of the acquisition, each holder of a subscription receipt will be entitled to receive, automatically and without additional consideration or further action on the part of the holder: (i) one common share of Propel; and (ii) a cash amount equivalent to the 15-cent dividend per common share payable by the company to holders of common shares of record on Nov. 15, 2024, with payment occurring on Dec. 4, 2024.

Trading in the subscription receipts is expected to be halted, the transfer register maintained by the subscription receipt agent will be closed and the subscription receipts will be delisted from the Toronto Stock Exchange, in each case, effective as of the close of trading today. The common shares to be issued pursuant to the terms of the subscription receipts are expected to commence trading on the TSX on Nov. 15, 2024.

About Propel Holdings Inc.

Propel Holdings 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 its lending-as-a-service product line facilitate 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 result is better products and an expanded credit market for consumers while creating sustainable, profitable growth for Propel. The company's revolutionary fintech platform has already helped consumers access over one million loans and lines of credit and over one billion dollars in credit. At Propel, the company is here to change the way customers, partners and investors succeed together.

About QuidMarket

Launched in 2011, QuidMarket is a leading United Kingdom based, digital-only consumer lender specializing in providing short-term instalment 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.

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