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

Core Viewpoint - Everyday People Financial Corp. is undergoing a strategic restructuring to divest its Financial Services operating entities to EAM Enterprises Inc., positioning itself as a pure-play international Revenue Cycle Management (RCM) platform [1][2][3] Group 1: Strategic Restructuring - The divestiture will allow the company to focus on its core RCM operations, which include receivables management and collections services for various sectors [3][4] - The company plans to rebrand its Canadian and UK operations as Everyday People Financial Solutions Corp. to align with its international RCM platform [2][15] - The restructuring is expected to simplify the company's structure and enhance its capital markets positioning [7][14] Group 2: Financial Performance - For the three and nine months ended September 30, 2025, the RCM segment generated approximately $18.8 million and $51.6 million in revenue, reflecting growth of 51% and 40% compared to the same periods in 2024 [5] - The RCM segment reported Adjusted EBITDA of $2.7 million and $7.6 million during the same periods, indicating strong operational performance [5] Group 3: Future Opportunities - Management believes the simplified structure will enable the company to pursue additional strategic acquisitions within the receivables management sector while maintaining access to traditional bank financing [6] - Provisions are included in the transaction structure to allow shareholders to participate in future economic upside related to the Financial Services platform [12][13] Group 4: Related Party Transaction - The divestiture constitutes a related party transaction as EAM is owned by Carrie Reykdal, the wife of the company's Executive Chairman [8] - The transaction was reviewed and approved by the independent members of the Board of Directors, ensuring it is in the best interests of the company and its shareholders [9] Group 5: Corporate Rebranding and Management Commentary - The planned rebranding to Everyday People Financial Solutions Corp. reflects the company's strategic evolution and focus on global receivables management [15][18] - Management emphasizes that this transaction is a significant step in simplifying the business and concentrating on the most scalable platform [16][18]