Everyday People Financial Corp. Announces Strategic Divestiture and Transition to Pure-Play Global Revenue Cycle Management Platform

Executive Summary

• Everyday People Financial Corp. announced a strategic restructuring that will divest all Financial Services operating entities to EAM Enterprises Inc. for a purchase price of $850,000.
• Post‑divestiture the company will rebrand as Everyday People Financial Solutions Corp. and operate solely as a pure‑play international Receivables Management (RCM) platform in Canada and the United Kingdom.
• The transaction is deemed a material change under NI 51‑102; a Material Change Report will be filed, and future filings will reflect the divestiture.

Key Details

• Divested Entities: Everyday People Homes Inc., EP Homes II Inc., EP Travel Card Inc., Everyday People Care Inc., Everyday People Climb Credit Inc., Everyday People Supply Chain Solutions Inc. (100% of issued shares).
• Purchase Price: $850,000 (subject to customary post‑closing adjustments).
• Closing Timeline: Expected on or before 2026‑04‑01, pending TSX Venture Exchange and regulatory approvals.
• Related Party Transaction: EAM Enterprises Inc. is owned by Carrie Reykdal, spouse of Executive Chairman Gordon Reykdal; transaction reviewed and approved by independent directors with abstention from interested director.
• Exemption from Valuation/Minority Approval: Considered exempt because consideration does not exceed 25% of market capitalization.
• Potential Reviewable Disposition: Company will submit required documentation to TSX Venture Exchange under Policy 5.3 due to related‑party nature.
• Financial Services Revenue (pre‑divestiture): RCM segment generated $18.8 M (3‑month) and $51.6 M (9‑month) in revenue for periods ended Sep 30 2025, representing 51% and 40% YoY growth respectively; Adjusted EBITDA of $2.7 M and $7.6 M.
• Future Participation Rights: Mechanisms may be implemented to allow current shareholders to participate in any future spin‑out or listing of the divested Financial Services assets, subject to regulatory approval.
• Rebranding Plan: Upon completion, company name will change to Everyday People Financial Solutions Corp., aligning with its UK flagship operations.
• Share Structure Updates:
• Redemption of 380,000 RSUs on March 6 2026 resulted in 129,581,636 common shares outstanding (subject to statutory hold period).
• Grant of 250,000 RSUs to each independent director on Jan 20 2026 (vesting one year from grant).
• Omnibus Share Incentive Plan: Provides for RSUs, Options, PSUs, and DSUs with a total reserve of up to 10% of non‑diluted common shares; maximum of 5,000,000 shares reserved for Share Units/DSUs.

Notable Quotes

“This transaction represents an important step in simplifying our business and focusing entirely on our strongest and most scalable platform.” – Gordon Reykdal, Executive Chairman

“Our collections and receivables management platform continues to expand across both the UK and Canadian markets…allows our team to focus on operational execution, continued technology integration and expanding our relationships with institutional clients.” – Graham Rankin, Co‑CEO, UK RCM division

“Simplifying the corporate structure and focusing on our core collections businesses positions the Company well for long‑term growth.” – Barret Reykdal, Co‑CEO, Canadian RCM division