MRBLF - Marble Financial Executes Definitive $10 Million Credit Facility Agreement with Cypress Hills Partners Inc. to Fund its Fast-Track Loan Product
(TheNewswire)
Vancouver, B.C. - TheNewswire - July 26 , 2021 - Marble FinancialInc. (C NSX :MRBL. CN) ( OTC:MRBLF ) ( FSE:2V0) (“Marble” or the “Company”) an AI-driven financial technology companythat educates and helps Canadians better understand and manage theircurrent cash flow and credit towards a better financialfuture , is pleased to announceit has entered into an arm’s length definitive credit facilityagreement (“Credit Agreement”) with CHP Agent Services Inc., asubsidiary of an independent, non-affiliated Canadian basedalternative specialty lender, Cypress Hills Partners Inc.(“CHP”).
The Credit Agreement provides for a $10 million creditfacility to Marble through its wholly owned Special Purpose Vehicle(“SPV”) subsidiary and TPFM as servicing agent for originations,adjudications, administration, and monitoring of the SPV loanportfolio. The aggregate amount of the funding is determined as aselected percentage (“the “Advance Rate”) of the SPV’seligible customer loans, with the initial Advance Rate set at 95% anda minimum threshold of 80%. Interest is charged at CanadianPrime (1) plus 13%, with a provisional discount if the Advance Rate isless than 95%. The maturity date for all funds advanced is three yearsafter the first funding advance, with an option to extend for afurther two years upon mutual agreement.
The Credit Facility will be used to re-engageMarble’s legacy financial wellness Fast-Track program. TheFast-Track program helps qualified Canadians accelerate their creditrebuilding process by exiting their Consumer Proposal and commencingtheir journey back to mainstream financial inclusion. Marble thru itswholly owned subsidiary, TPFM will continue to originate andadjudicate the Fast-Track program through its proprietary MyMarblePlatform and will manage the SPV loan portfolio and earn the netinterest income and other income, including insurance, administrationfees and SaaS revenue. This opportunity willenable Marble to re-engage and greatly expand its Fast-Track programand support the Company’s Data Science and Machine Learninginitiatives towards Marble’s Second-Generation scoring algorithms.Data Analysis will continue to provide meaningful insights on futureproducts and solutions for the millions of underbanked Canadian thatare excluded from traditional financial services.
This Credit Agreement enables Marble to originate, adjudicate itsFast-Track program and service the loan portfolio through theCompany’s proprietary MyMarble platform andcontinue its growth strategy in providing personal finance and creditwellness technology solutions to the millions of underbanked Canadiansthat are financially marginalized.
Since the break of the COVID-19 pandemic Marble hasreceived over 2000 pre-qualified MyMarble Members looking to enroll inFast-Track once it becomes available this month. With a historicaverage loan size of $8,000 combined with potential SaaS basedsubscription revenue, the resumption of Fast-Track creates a largepool of multi-stream revenue opportunity with negligible marketingspend.
In the midst of Canada’s slow recovery from theCOVID-19 pandemic and the ending of government-led income subsidiaryand deferral programs, a July 2021 Debt Survey by MNP has shown that45% of Canadians are doubtful they can cover living expenses thisyear, with a massive 30% report being insolvent (2) . Marble’sFast-Track program, combined with MyMarble , is a proven successful solution for this large populationof goal-oriented Canadians who have recently become insolvent or filedfor a consumer proposal caused by a perpetual state of low-income.
With many experts predicting that more and moreCanadians are expected to file for Consumer Proposals, this growingnumber of potential insolvent consumers will increase demand forFast-Track in the years to come. According to Canadian Association ofInsolvency and Restructuring Professionals (“CAIRP”), consumerinsolvencies have recently increased by a record-breaking 22.8% inMarch 2021 compared to February 2021. This marks the largest singlemonth-over-month increase in more than 10 years (3) .
“At Marble, our mission is to nourish confidence inCanadians to redefine their financial outlook. This Credit Agreementenables Marble to continue looking forward to empowering morefinancially challenged Canadians back to the mainstream economy,”states Karim Nanji, Marble CEO. “The re-commencement of theFast-Track program is both significant and timely given the currenteconomic circumstances facing Canadians. We are encouraged that CHPbelieves in our business strategies and has the confidence in ourmanagement team to execute on it.”
“We believe the re-engagement of the credit wellnessFast-Track program by Marble is very well timed. Cypress Hills looksforward to a long partnership with the Marble as they disrupt thefinancial wellness space in Canada,” states Kelly Klatik, ManagingPartner of Cypress Hills Partners. ”
ON BEHALF OF THE BOARD OF DIRECTORS,
Karim Nanji, CEO
About Cypress Hills PartnersInc. - Cypress HillsPartners (CHP) is an alternative specialty lender based out ofVancouver, Canada. CHP’s primary focus is a receivable lendingstrategy with loan facilities secured against consumer and SMEcashflows and/or other type of acceptable security. CHP’s targetvertical is lending to Specialty Lending Platforms in Canada and theU.S. via private debt structures ranging in size from $5 million to$50 million.. Cypress Hills Partners is adept inleveraging technology and financial structuring experience, toaccelerate the growth of specialty lending platforms and serviceproviders, creating a differentiated market advantage. Directprivately negotiated investments may include consumer loans, small andmedium sized enterprise (SME) loans, advances against corporate tradereceivables and equipment, senior secured loans, regulatory capital,and mezzanine debt.
About Marble Financial Inc. (CSE:MRBL; OTC: MRBLF; FSE:2V0) Marbles’proprietary MyMarble platform utilizes the power ofmachine learning, data science, and artificial intelligence, inleveraging its proven data-driven strategies through technologysolutions Inverite, Score-Up, Fast Track and Maestro to engage in andnavigate a clear path towards financial wellbeing and a meaningfulcredit score, since 2016, Marble is proud to have empowered thousandsof marginalized consumers to a positive financial future, and wecontinue to establish ourselves as leaders in financial wellnessthrough the licensing of our proprietary products on the MyMarble Platform.
For further information, please visit the company’swebsite at: http://mymarble.ca
Mike Marrandino,
Executive Chairman
T:(855) 661-2390 ext. 104
Email: ir@marblefinancial.ca
NOTES:
(1) means, for any day, the perannum interest rate published as the “prime rate” by the Bank ofCanada, currently located at the following web site:https://www.bankofcanada.ca/rates/daily?digest/, except that if suchrate shall exceed 5.00% the prime rate shall be deemed to be 5.00%,and if such rate shall fall below 3.50%, the prime rate shall bedeemed to be 3.50%.
(2)https://mnpdebt.ca/en/resources/mnp-consumer-debt-index
(3) https://storeys.com/consumer-insolvencies-canada-highest-level/
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITSREGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITYFOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
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