Everyday People's BPO receives OK to acquire ACT Credit

Executive Summary

• Everyday People Financial Corp. (via subsidiary BPO Collections Ltd.) received UK Financial Conduct Authority (FCA) approval to acquire 100% of ACT Credit Management Ltd., a UK-based debt collection and credit management firm.
• The acquisition is financed through existing cash flow with no share issuance or debt assumption. ACT is expected to contribute annual EBITDA of $750,000–$1.0 million and annual revenue of $6.0 million–$9.0 million.
• The company also announced a debt-for-equity settlement with a service provider for ~$85,154 via the issuance of 100,000 common shares, and an application to extend outstanding warrants by one year to January 21, 2027.

Key Details

• ACT Credit Management Acquisition:
  • Structure: BPO Collections Ltd. (wholly owned subsidiary) to acquire 100% of issued and outstanding shares of ACT Credit Management Ltd.
  • Regulatory Status: Received FCA approval on Dec. 16, 2025. Closing anticipated on or about Jan. 1, 2026, subject to customary conditions.
  • Financial Terms: Financed through existing cash flow; no shares issued; no existing debt assumed.
  • Materiality: Classified as non-material and exempt under TSX-V Policy 5.3.
  • Operational Impact: ACT provides debt recovery, tracing, credit reporting, and legal enforcement. Expected annual EBITDA: $750,000–$1.0 million. Expected annual revenue: $6.0 million–$9.0 million.
• Debt Settlement Agreement:
  • Counterparty: A service provider to subsidiary General Credit Services Inc.
  • Consideration: Issuance of 100,000 common shares to settle outstanding indebtedness of approximately $85,154.
  • Post-Issuance Share Count: 129,201,636 common shares issued and outstanding.
  • Restrictions: Shares subject to a statutory hold period of four months plus one day. TSX-V approval required for issuance.
• Warrant Extension:
  • Instrument: 2,342,000 share purchase warrants originally issued Jan. 21, 2022.
  • Action: Application to TSX-V to extend expiry from Jan. 21, 2026, to Jan. 21, 2027 (one-year extension).
  • Terms: Exercisable at $1.25 per common share. All other terms remain unchanged.
  • Compliance: Extension is within the five-year maximum term allowed by TSX-V Policy 4.1.

Notable Quotes

• "The receipt of FCA approval represents an important regulatory milestone and allows us to move forward with the integration of ACT into our U.K. revenue cycle management operations... ACT's strong reputation and operational expertise meaningfully enhance our RCM platform in the U.K. and align well with our disciplined acquisition strategy." — Graham Rankin, Co-Chief Executive Officer RCM (U.K.)
• "We are pleased to again extend these warrants as part of our continued commitment to supporting our stakeholders. This additional one-year extension provides warrantholders with added flexibility and time to participate in the company's progress as we advance our growth strategy." — Gordon Reykdal, Executive Chairman