REG - Investment Evolution - Proposed Acquisition of Credit Canary Ltd

Banco de Sabadell SAAnnouncement

27/02/2025 08:15

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RNS Number : 6189Y  Investment Evolution Credit PLC  27 February 2025

27 February 2025

Investment Evolution Credit plc

 

("IEC", the "Company" or the "Group")

 

Proposed Acquisition of Credit Canary Ltd

 

Investment Evolution Credit plc (AQSE: IEC) - 27 February 2025: IEC, a global
fintech group specialising in online consumer loans, announces that it has
made an offer to acquire the entire issued share capital of Credit Canary Ltd
("Credit Canary"), a UK incorporated private limited company that specialises
in AI and software development and provides AI consumer credit services, for a
total consideration of approximately £4 million (the "Proposed Acquisition"),
subject to the completion of the relevant due diligence processes,
satisfaction of certain conditions and the signing of a binding share purchase
agreement.

 

Details of the Proposed Acquisition

Under the terms of the Proposed Acquisition, IEC intends to acquire 100% of
all share classes of Credit Canary, representing its entire issued share
capital, for a total consideration of approximately £4 million, to be
satisfied through the issue of 32,000,000 new ordinary shares of £0.005 each
in the Company at a price of 12.5p per share. The Proposed Acquisition
reflects the commencement of the Company's M&A strategy in consumer
finance services.

 

Under the terms of the Proposed Acquisition, Credit Canary would retain its
staff, operating structure, brand and autonomy. It is proposed that the
shareholders of Credit Canary will be locked-in for a 12 month period from the
effective date of the Proposed Acquisition.

 

The Proposed Acquisition is conditional upon the satisfaction of certain
conditions, including regulatory approvals, completion of due diligence by the
Company, and the signing of a binding share purchase agreement. A further
announcement will be made in due course.

 

Credit Canary is a UK incorporated private limited company founded in 2022
that leverages advanced technology, multi-source data and artificial
intelligence to enhance consumer credit lending processes and customer
management. The full acquisition of Credit Canary would allow the adoption of
its services as a software provider by IEC and sale of Credit Canary AI
consumer finance services into UK and potentially in the future into global
markets such as US, Europe, Philippines and Africa.

 

Richard Leaver, Chief Executive Officer of Investment Evolution Credit plc,
stated:

"IEC has made an offer to acquire Credit Canary, as it offers the prospect of
a highly favourable outcome for both companies and aligns with the Company's
goals of incorporating a vertical with significant beneficial use of AI in
consumer lending. The Board of IEC recognises the valuable synergies of the
acquisition with the Company's strategy, which could significantly advance
IEC's plans in 2025."

 

About IEC

IEC is an AI driven, consumer finance fintech innovator with a mission to
rehabilitate borrowers through better technology and fairer products. IEC is
an experienced regulated licensed lender under the consumer brand Mr. Amazing
Loans in the United States with state consumer lending licenses/certificates
of authority in the six states
of California, Florida, Georgia, Illinois, Nevada and New Jersey and
an established track-record of regulatory compliance for over 14 years. IEC
plans to expand its United States lending model to the United
Kingdom market in 2025 by providing £2,000 to £10,000 online personal
loans with fixed affordable repayments, subject to the successful acquisition
of an existing UK FCA licensed consumer lender. IEC also plans to expand
its business to providing AI consumer credit services globally through the
acquisition of existing AI businesses.

 

About Credit Canary

Credit Canary Ltd is a UK-based fintech company specialising in AI-driven
credit risk assessment and customer engagement solutions. Founded in 2022, it
helps lenders proactively manage borrowers by integrating real-time data from
multiple sources, including open banking, credit reports, and tax records.
Credit Canary's technology enables lenders to detect early signs of financial
distress, reducing missed payments and improving loan performance. By
leveraging predictive analytics and automation, this provides actionable
insights, allowing financial institutions to support customers more
effectively. The company has gained recognition in the fintech sector,
advancing in TSB Bank's Innovation Labs. Credit Canary aims to transform the
consumer credit industry by making lending fairer, more responsible, and
data-driven. For more information please visit:  www.creditcanary.co.uk

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company accept responsibility
for the contents of this announcement.

 

Enquiries:

 

 Investment Evolution Credit plc
 Richard Leaver - Chief Executive Officer                           iecenquiries@investmentevolution.com

 Cairn Financial Advisers LLP (IEC AQSE Corporate Adviser)
 Ludovico Lazzaretti                                               +44 (0) 20 7213 0880
 Jo Turner

 Oberon Capital (IEC Corporate Broker)
 Adam Pollock                                                      +44 (0) 203 179 5300

 Nick Lovering

 Jessica Cave

 Professional and institutional investors can contact Oberon Capital on
 corporatesales@oberoninvestments.com
 (mailto:corporatesales@oberoninvestments.com)

 

For more information please visit: www.investmentevolution.com
(http://www.investmentevolution.com/) /investors

 

Caution Regarding Forward Looking Statements

Certain statements made in this announcement are forward-looking statements.
These forward-looking statements are not historical facts but rather are based
on the Company's current expectations, estimates, and projections about its
industry; its beliefs; and assumptions. Words such as 'anticipates,'
'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar
expressions are intended to identify forward-looking statements. These
statements are not a guarantee of future performance and are subject to known
and unknown risks, uncertainties, and other factors, some of which are beyond
the Company's control, are difficult to predict, and could cause actual
results to differ materially from those expressed or forecasted in the
forward-looking statements. The Company cautions security holders and
prospective security holders not to place undue reliance on these
forward-looking statements, which reflect the view of the Company only as of
the date of this announcement. The forward-looking statements made in this
announcement relate only to events as of the date on which the statements are
made. The Company will not undertake any obligation to release publicly any
revisions or updates to these forward-looking statements to reflect events,
circumstances, or unanticipated events occurring after the date of this
announcement except as required by law or by any appropriate regulatory
authority.

 

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