CALGARY, ALBERTA--(Marketwired - Nov. 14, 2016) - Olympia Financial Group Inc. ("Olympia") (TSX:OLY) is pleased to announce that it has entered into a binding letter of intent (the "Letter of Intent") to acquire from Raintree Financial Solutions Inc., Pderas Consulting Group Inc. and Incapsol Inc. all of their respective rights and interests in and to:
- a cloud based online investor statement generation system for exempt market dealers (the "CRM2 System"); and
- a cloud-based online back office regulatory compliance system for exempt market dealers (the "Back- Office System"),
for a purchase price of $225,000 and a 20% equity interest in the Olympia subsidiary to be formed to develop and market the CRM2 and Back-Office Systems. The closing of the transactions contemplated in the Letter of Intent is anticipated to occur on November 30, 2016 and is subject to the prior completion of a satisfactory due diligence review by Olympia.
CRM2 refers to the second round of changes under the Client Relationship Model initiative commenced by the Canadian Securities Administrators. In accordance with this initiative, exempt market dealers need to:
- provide an annual report on charges and other compensation that shows, in dollars, what the exempt market dealer was paid for the products and services it provided; and
- provide an annual investment performance report that covers:
- deposits into, and withdrawals from, the client's account;
- the change in value of the account; and
- the percentage returns for the previous year; and the previous three, five and ten years.
Olympia intends to offer the CRM2 System to exempt market dealers in order facilitate their compliance with these and other CRM2 requirements.
Olympia also intends to develop and market the Back Office System to existing and prospective exempt market dealers.
About Olympia Financial Group Inc.
Olympia conducts most of its operations through its wholly-owned subsidiary Olympia Trust Company, a non-deposit taking trust company. Olympia Trust Company is licensed to conduct trust activities in Alberta, British Columbia, Saskatchewan, Manitoba, Quebec, Newfoundland and Labrador, Prince Edward Island, New Brunswick and Nova Scotia. Olympia Trust Company administers self-directed registered accounts and offers foreign currency exchange services. OFGI also offers private health services plans through its wholly-owned subsidiary Olympia Benefits Inc. and operates an ATM business through its wholly-owned subsidiary Olympia ATM Inc.
Olympia's common shares are listed on the Toronto Stock Exchange under the symbol "OLY".
Statements Regarding Forward-Looking Information
Certain portions of this press release as well as other public statements by the Corporation contain "forward-looking information" within the meaning of applicable Canadian securities legislation, which is also referred to as "forward -looking statements", which may not be based on historical fact. Wherever possible, words such as "will", "plans," "expects," "targets," "continue", "estimates," "scheduled," "anticipates," "believes," "intends," "may," and similar expressions or statements that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved, have been used to identify forward-looking information. Forward-looking statements contained in the Corporation's public disclosure include, without limitation, the Corporation's earnings expectations, fee income, expense levels, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, technological change, changes in government regulations, unexpected judicial or regulatory proceedings, catastrophic events, and the Corporation's ability to complete strategic transactions and other factors. In addition, this news release contains forward looking statements relating to: the closing of the acquisition of the CRM2 and Back-office Systems and the marketing of the CRM2 and Back-office Systems to exempt market dealers.
All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current interest rate and liquidity conditions affecting the Corporation and the Canadian economy. Certain material factors or assumptions are applied by the Corporation in making forward- looking statements, including without limitation, factors and assumptions regarding interest and foreign exchange rates, availability of key personnel, the effect of competition, government regulation of its business, computer failure or security breaches, future capital requirements, acceptance of its products in the marketplace, its operating cost structure, the current tax regime and the ability of the Corporation to obtain necessary third party and governmental approvals, as applicable, to secure the employment of the requisite employees necessary to develop and market the CRM2 and Back-office Systems, and retain existing customers and generate new business.