Mr. Holger Arians reports

BANXA ANNOUNCES BUYOUT OF SENIOR SECURED CONVERTIBLE NOTE

Banxa Holdings Inc. has completed the payment in full of the final buyout amount of senior secured debt pursuant to a convertible security funding agreement with Lind Global Fund II (Lind) announced on Oct. 17, 2022. The buyout amount was paid in cash via the funds raised in the private placement announced on Oct. 10, 2023. The payments remitted since inception total less than the face value of the funding agreement, being $4.2-million.

This milestone has strengthened and derisked Banxa's capital structure by removing restrictive covenants, reducing the cost of capital for future financing and returning flexibility to the balance sheet. Banxa can now pursue lower cost of capital to support its growing transaction volume and continued geographic expansion.

"I am extremely pleased for Banxa to have completed this buyout as it enables Banxa to be in control of its own destiny. Banxa is now well positioned for its next stage of growth," said chairman and chief executive officer Holger Arians. "We fully expect for digital assets to keep growing, and Banxa is now in a stronger position to take advantage of the catalysts to come in 2024 and beyond."

Banxa is working through the process of terminating the funding agreement, which will be completed once the general security over the company held by Lind is removed with the appropriate security counsels in the various jurisdictions.

We seek Safe Harbor.