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Feature company Solution Financial, a luxury auto and yacht leasing company, initiates quarterly dividend

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The company specializes in sourcing and leasing luxury and exotic vehicles, yachts and other high value assets.

Additional Information:

Company: Solution Financial Inc.
Website: http://www.Solution.Financial
Stock Symbol: TSXV: SFI
Date Published: Aug 26, 2019
Transcript: Available

Video Transcript:

I’m Fiona Forbes for Investmentpitch Media

Today’s feature company is Solution Financial Inc. which trades on the TSX Venture Exchange under the symbol “SFI”.

The company specializes in sourcing and leasing luxury and exotic vehicles, yachts and other high value assets.

Its customers include affluent immigrants, international students and business owners.

Solution Financial works with different groups of luxury/ultra luxury automotive dealerships, providing alternative leasing solutions to clients who cannot obtain leasing terms with traditional Canadian banks.

The ultra luxury category includes Aston Martin, Bentley, Lamborghini, Ferrari, Maserati, and McLaren.

The company offers a unique equity value leasing structure that allows its clients to lease multiple vehicles and/or upgrade at any time throughout their lease terms.

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.

With new capital coupled with organic growth, the company plans to grow the in house business with a projected portfolio size to exceed $40 million by 2020 without brokering out leases to third party lending companies.

Bryan Pang, CEO, stated: “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. 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.”

The shares are currently trading at $0.40.

For more information, please visit the company’s website at www.Solution.Financial, contact Sean Hodgins, CFO, at 778-318-1514 by email sean.hodgins@Solution.Financial.

I’m Fiona Forbes for Investmentpitch Media