Key Shareholder Approvals
Automotive Finco Shareholders Approve Directorships, Reappoint Auditors, and Continue Stock Option Plan
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Automotive Finco Corp. held its annual general and special meeting in Toronto on June 17, 2026, with shareholders voting to re-elect all three board nominees and approve key governance measures. National Post reported that Kuldeep Billan, Farhad Abasov, and Curtis Johansson were confirmed as directors by a clear majority vote.
The meeting also approved the reappointment of the company's auditors and the continued use of its stock option plan. The results cement the current leadership team's grip on the Toronto-based specialty lender, which finances Canadian auto dealerships and trades on the NEX board of the TSX Venture Exchange.
Three Directors Re-Elected With Shareholder Majority
Shareholders elected Kuldeep Billan, Farhad Abasov, and Curtis Johansson to the board, according to Market Screener. Billan serves as both CEO of Automotive Finco and founder of Alpha Auto Group — the company's primary borrower. Abasov, the board's chairman, is a veteran mining and finance executive who previously led Allana Potash and Millennial Lithium. Johansson is a partner at CAI Capital Management, brought on for his private equity background.
The company also approved the reappointment of its external auditors and voted to keep the stock option plan in place. That plan lets management award shares to retain key staff. Edmonton Sun noted that all resolutions passed with a clear majority of votes cast.
AFCC's Unusual Business Model Draws Both Fans and Critics
Automotive Finco does not sell cars. Instead, it lends money to auto dealerships through special debt instruments called Debt-based Economic Tracking Securities, or DETS. Its biggest loan — $21 million to AA Finance Co LP, an Alpha Auto Group affiliate — generated $752,253 in interest income in Q3 2024 alone. The company earns fixed returns of 10.5% to 15% on these loans.
The setup raises flags for some analysts. Billan controls both the lender, AFCC, and the main borrower, Alpha Auto Group. Simply Wall St flags this structure as a conflict-of-interest risk. The firm also notes AFCC's dividend payout ratio sits at 366% — meaning it pays out far more in dividends than it earns in profit. The quarterly dividend stands at $0.0513 per share, with the next payment due July 31, 2026.
NEX Board Status Limits Growth as Canada Hits Recession
AFCC has traded on the NEX board — a section of the TSX Venture Exchange for companies with low activity — since April 2021. The June 17 meeting produced no plan to "graduate" back to the main exchange. That status caps institutional investor interest and signals AFCC has not yet met the exchange's requirements for asset scale and operational activity, according to TMX Group guidelines.
This matters more now because Canada entered a technical recession in mid-2026. New vehicle sales held up, rising just 0.2% in Q1, but analysts at Kalkine CA noted AFCC's stock slid 4.48% after its Q1 2026 filings in May. The company's market cap stands at roughly $26.56 million CAD — tiny by institutional standards — and trailing 12-month revenue sits at $1.42 million USD.
Stock Sits 21% Below Analyst Target Despite 16% Dividend Yield
Despite the risks, some investors are drawn to AFCC for its income. The stock yields roughly 16% annually — a rare figure in today's market. Stockopedia analysts hold a consensus price target of $1.70 per share, roughly 21% above the current trading price of about $1.30. Total shareholder equity stood at $23.6 million CAD as of March 31, 2026, according to SEDAR filings.
The June 17 vote shows shareholders are currently willing to accept the status quo — high yields now, governance questions later. But with profit margins falling from 71% to 46% year-over-year and no new board members in three years, Pincher Creek Echo and other outlets carrying the announcement offer little sign of any near-term strategic shift.
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