Nicholas Financial Completes Asset Acquisition
Ticker: OMCC · Form: 8-K · Filed: May 1, 2024 · CIK: 1000045
Sentiment: neutral
Topics: acquisition, assets
TL;DR
NICH just bought assets, deal's done.
AI Summary
Nicholas Financial, Inc. announced on April 26, 2024, the completion of its acquisition of assets from a third party. The filing does not disclose specific dollar amounts or the name of the acquired entity, but it confirms the transaction has closed.
Why It Matters
This filing indicates a strategic move by Nicholas Financial to expand its asset base, which could impact its future revenue streams and market position.
Risk Assessment
Risk Level: medium — The lack of specific financial details in the filing regarding the acquisition introduces uncertainty about the deal's true value and impact.
Key Players & Entities
- Nicholas Financial, Inc. (company) — Registrant
- April 26, 2024 (date) — Date of earliest event reported
FAQ
What specific assets were acquired by Nicholas Financial, Inc.?
The filing does not specify the exact nature or type of assets acquired.
What was the financial consideration for this acquisition?
The filing does not disclose the dollar amount or any financial terms of the acquisition.
Who was the third party from whom the assets were acquired?
The filing does not name the seller or the third party involved in the asset acquisition.
When did the acquisition officially close?
The acquisition was completed on April 26, 2024, as reported in the filing.
What is the primary business of Nicholas Financial, Inc.?
Nicholas Financial, Inc. is classified under 'SHORT-TERM BUSINESS CREDIT INSTITUTIONS' (SIC code 6153).
Filing Stats: 739 words · 3 min read · ~2 pages · Grade level 14.3 · Accepted 2024-05-01 17:24:38
Key Financial Figures
- $65,617,598 — sed with an aggregate purchase price of $65,617,598, pursuant to the terms of the Purchase
- $40,633,835 — e Company received net cash proceeds of $40,633,835 and, pursuant to the Purchase Agreement
- $25,894,206 — ant to the Purchase Agreement, retained $25,894,206 in principal and interest cash payments
Filing Documents
- nick-20240426.htm (8-K) — 52KB
- 0000950170-24-051408.txt ( ) — 164KB
- nick-20240426.xsd (EX-101.SCH) — 25KB
- nick-20240426_htm.xml (XML) — 5KB
01 Completion of Acquisition or Disposition of Assets
Item 2.01 Completion of Acquisition or Disposition of Assets As previously disclosed by Nicholas Financial, Inc. (the "Company") in a Form 8-K filed with the Securities and Exchange Commission (the "SEC") on November 17, 2023 (the "November 8-K"), on November 13, 2023, the Company and Nicholas Financial, Inc., a Florida corporation ("Nicholas") and an indirect wholly-owned subsidiary of the Company, entered into a Master Asset Purchase Agreement (the "Purchase Agreement") with Westlake Services, LLC dba Westlake Financial, a California limited liability company ("Westlake"), pursuant to which the Company and Nicholas agreed to sell, and Westlake agreed to purchase substantially all of the Company's and Nicholas' assets, consisting of Nicholas' motor vehicle retail installment sale contracts and unsecured consumer loan contracts (collectively, the "Contracts") and the accounts receivable related to such Contracts (collectively, the "Receivables"). A copy of the Purchase Agreement is included as Exhibit 2.1 to this Form 8-K by incorporation by reference. As also previously disclosed by the Company in the November 8-K, Westlake is an affiliate of Westlake Portfolio Management, LLC, a California limited liability company ("WPM"), and Nicholas entered into a Loan Servicing Agreement (the "Servicing Agreement") with WPM on November 3, 2022, pursuant to which WPM commenced servicing of the Receivables under the Contracts in December 2022. In connection with entering into the Purchase Agreement, the Company ceased new originations, and WPM continued to service the Receivables for Nicholas until the closing of the transactions contemplated by the Purchase Agreement. On April 26, 2024 the transactions contemplated by the Purchase Agreement closed with an aggregate purchase price of $65,617,598, pursuant to the terms of the Purchase Agreement. After adjustments to the gross aggregate purchase price, the Company received net cash proceeds of $40,633,835 and, pursuant to t
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits (a) Not applicable (b) Not applicable (c) Not applicable (d) Exhibits: Exhibit # Description 2.1 Master Asset Purchase Agreement dated as of November 13, 2023 between Westlake Services, LLC dba Westlake Financial and Nicholas Financial, Inc.* * Incorporated by reference to Exhibit 2.1 to the Company's Form 8-K as filed with the SEC on November 17, 2023 . SIGNA TURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, hereunto duly authorized. NICHOLAS FINANCIAL, INC. (Registrant) Date: May 1, 2024 /s/ Irina Nashtatik Irina Nashtatik Chief Financial Officer (Principal Financial Officer)