Everyday People Financial Finalizes Sale of Non-Core Subsidiaries and Settles Directors' Fees via Share Issuance

Successful Completion of Subsidiary Divestiture

Everyday People Financial finalized the sale of six non-core financial services subsidiaries to FinCard Financial Services Inc., marking a strategic refocus of its business operations. Under a share purchase agreement dated March 11, 2026, ownership of Everyday People Homes Inc., EP Homes II Inc., EP Travel Card Inc., Everyday People Care Inc., Everyday People Climb Credit Inc., and Everyday People Supply Chain Solutions Inc. transferred to FinCard. The company received aggregate consideration of $850,000 for these assets.

The transaction was executed through Everyday People Investments Inc., a wholly owned subsidiary acting as vendor. The divestiture was ratified by a majority of disinterested shareholders at the annual and special meeting on July 23, 2026. Votes from Gordon Reykdal, EAM Enterprises Inc., Carrie Reykdal, David Guebert, Scott Sinclair, and their affiliates were excluded due to their status as interested parties. The TSX Venture Exchange granted final acceptance, and the transaction closed effective July 23, 2026.

Related Party Transaction and Regulatory Compliance

This divestiture qualified as a "related party transaction" under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) because EAM Enterprises Inc., owned by Carrie Reykdal, holds an interest in FinCard. Carrie Reykdal is married to Gordon Reykdal, Executive Chairman of FinCard and Senior Advisor to Everyday People Financial. This relationship necessitated full disclosure to protect minority shareholders.

Detailed disclosures about the transaction’s background, rationale, and related party aspects were provided in the management information circular dated June 23, 2026, and a news release from March 11, 2026. Both documents are accessible on SEDAR+ at www.sedarplus.ca. This regulatory framework ensured independent shareholders had full transparency before voting.

Directors’ Accrued Fees Settled Through Share Issuance

Alongside the subsidiary sale closing, Everyday People Financial settled $291,500 in accrued directors’ fees by issuing common shares. Four independent directors—David Guebert, Amy ter Haar, Nitin Kaushal, and Scott Sinclair—received a total of 435,073 shares at a deemed price of $0.67 per share. The transaction closed on July 23, 2026, following disinterested shareholder approval and TSX Venture Exchange acceptance.

Individual settlements were: David Guebert with 106,716 shares for $71,500; Amy ter Haar with 106,716 shares for $71,500; Nitin Kaushal with 114,925 shares for $77,000; and Scott Sinclair with 106,716 shares for $71,500. These directors abstained from voting due to their status as interested parties.

Regulatory Exemptions and Shareholder Approval Process

The debt settlement was classified as a related party transaction under Multilateral Instrument 61-101 and TSX Venture Exchange Policy 5.9. The company utilized exemptions from formal valuation and minority shareholder approval requirements based on the settlement’s fair market value being under 25% of the company’s market capitalization.

Despite these exemptions, Everyday People Financial secured disinterested shareholder approval per TSX Venture Exchange Policy 4.4, demonstrating governance beyond minimum legal standards. The settlement shares are subject to a four-month hold period under Canadian securities laws and TSX Venture policies, restricting immediate sale.

Strategic Shift to Pure-Play Revenue Cycle Management

Following the divestiture, Everyday People Financial has repositioned as a pure-play international revenue cycle management (RCM) company. Shedding non-core subsidiaries reduces operational complexity and enables concentration on primary RCM and receivables management services across Canada and the UK. This strategic focus aims to enhance shareholder value through specialization rather than diversification.

The company operates its RCM platform under brands including BPO, EPFS, CCS, ACT, GCS, and Groupe Solution. Employing over 700 professionals in Canada and the UK, it offers fee-for-service receivables management and debt collection services. Its model assists organizations in recovering receivables and streamlining billing without requiring clients to purchase consumer debt.

Upcoming Corporate Name and Trading Symbol Change

As announced earlier, the company plans to change its corporate name to "Global Receivables Management Inc." (or a similar name approved by regulators) and update its TSX Venture Exchange trading symbol. These changes reflect the company’s sharpened focus on international revenue cycle management after completing the subsidiary divestiture. The rebranding is subject to shareholder approval, TSX Venture Exchange acceptance, and other regulatory and corporate approvals, including filing Articles of Amendment.

No specific timeline has been provided for these changes. Investors should follow regulatory filings on SEDAR+ and official company communications for updates.

Company History and Operational Reach

Founded in 1988, Everyday People Financial has evolved into an international revenue cycle management provider with significant operations in North America and Europe. The company emphasizes a philosophy that individuals deserve a second chance to rebuild financially, guiding its responsible receivables management and debt collection practices that prioritize consumer dignity and affordability.

Serving both public and private sectors, the company employs over 700 professionals across Canada and the UK, enabling it to manage complex receivables mandates for institutional clients across multiple jurisdictions.

Forward-Looking Statements and Risks

The announcement includes forward-looking statements about the company’s ongoing focus on revenue cycle management, the proposed name change to Global Receivables Management Inc., and related trading symbol update. These statements assume timely receipt of regulatory and corporate approvals and successful execution of the company’s strategy without significant adverse changes in market or regulatory conditions.

Actual outcomes may differ due to risks including potential delays or failure to complete the name and symbol changes, regulatory changes, adverse business or economic conditions, and challenges in executing the strategic focus. Additional risks are detailed in public disclosures available on SEDAR+.

Share Price Effects and Investor Guidance

The immediate impact on share price from the subsidiary sale and debt settlement is not clear from public information. Investors may track trading activity on the TSX Venture Exchange (ticker: EPF) and OTC markets (ticker: EPFCF) to gauge market response to the transactions and strategic repositioning.

The issuance of 435,073 common shares for debt settlement dilutes existing shareholders, though these shares are subject to a four-month hold period. The $850,000 proceeds from the subsidiary sale provide capital that management may deploy to support core revenue cycle management operations, though specific uses have not been disclosed. Investors should monitor future filings and announcements for updates on capital allocation.