07:44 AM EDT, 08/20/2024 (MT Newswires) -- Axis Auto Finance Inc. (AXIS.TO), a financial technology company that helps customers purchase and finance used vehicles, provided Tuesday a strategic review update related to two potential sales of its businesses.

This comes after Axis in May 2024 entered into non-binding letters of intent with two separate, arms-length parties for potential sales of the auto finance and equipment finance businesses.

On the equipment finance sale transaction, a statement noted that as of August 16, 2024, Axis Equipment, a subsidiary within the Axis group of companies, had executed and closed an asset purchase agreement with an arms-length party. The assets sold include intangibles, customer lists, the assumption of certain vendor contracts and the transferring of employees to the purchaser.

Concurrent with this transaction, the statement said, under its two master purchase and servicing agreements that hold its securitization funding facilities, the servicing of the underlying customer contracts have been transferred back to the underlying funders who underwrote the contracts pursuant to the MPSA. Furthermore, Axis Equipment's syndicated and serviced portfolios have been assigned back to their respective purchasers who will undertake their ongoing collections and servicing. With the close of this transaction, the company intends to liquidate the remaining working capital positions in Axis Equipment in an orderly manner and dissolve the legal entity.

On the auto finance sale transaction, Axis noted that in May it had entered into a non-binding letter of intent to sell the business. It said the prospective purchaser has now completed its due diligence, and an agreement has been reached on the structure of the sale, and the company is in the process of negotiating the definitive agreement in respect of the proposed transaction.

But it said there can be no assurances that the transaction to sell the auto finance business will be completed or that a successful transaction will result from the strategic process. The company added it will provide further updates on the process as developments warrant.