Toronto, Ontario--(Newsfile Corp. - August 20, 2024) - Hank Payments Corp. (TSXV: HANK) ("Hank" or the "Company"), an emerging North American leader in the Banking-as-a-Service (BaaS) market with a platform that modernizes budgets and payments for enterprises and consumers is pleased to announce it has entered into a non-binding Letter of Intent dated August 19, 2024, for the acquisition of 100% of the shares of a private technology company. (the "Target")

Transaction Terms:

The material terms and conditions outlined in the Letter of Intent are non-binding on the parties and the Letter of Intent is, among other things, conditional on the execution of a definitive share purchase, arrangement (the "Definitive Agreement") to be negotiated between the parties.

In connection with the proposed Transaction, it is currently contemplated that all the issued and outstanding shares of the Target will be acquired by the Company. As consideration for the shares purchased, Hank will issue to the shareholders of the Target, that number of common shares of Hank which equates to a total equity value for the Target of up to CAD $7.2 MM.

The Target will also provide a mandatory advance of CAD $250,000 to Hank to facilitate the closing, to be extinguished upon completion of the transaction.

The consideration shares of Hank will be issued to or immediately distributed or transferred to the shareholders of the Target such that, no one new entity will own directly or indirectly 10% of Hank post the transaction. Certain escrow provisions are expected to be applied to the new shareholders created through this transaction.

Completion of the Transaction is subject to a number of conditions, including, but not limited to, receipt of applicable regulatory approvals, completion of satisfactory due diligence and the execution of the Definitive Agreement and related transaction documents.

In addition to all shares, the transaction includes a discounted license structure for secure, SOC II compliant personal and business data storage allowing Hank to avoid significant costs related to R&D and intellectual property. The platform is expected to be leveraged by consumers and Hank, as well as driving multiple new revenue streams leveraging the additional Intellectual Property purchased as part of the transaction.

The Transaction is expected to close in September, 2024.

About Hank Payments Corp.

Hank Payments Corp (the Company or "Hank") is a North American leader in consumer Fintech Software-as-a-Service (SaaS) and Banking-as-a-Service (BaaS) platforms that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Hank stack provides for several vertical market applications of the technology, with features specific to channels and enterprise accounts ("Partners") that allow those partners to operate new lines of business and revenue streams, using Hank. The Partners benefit from new revenue streams and powerful insights that open up additional opportunities for Partners to grow assets using Hank. The Company operates exclusively across the USA, with certain leadership and technology functions in Toronto. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. Hank currently charges upfront enrolment/setup fees and recurring monthly fees based on the types and quantity of payments that Hank Payments administers for the consumer (the "Users"). The Company acquires Users through various channels including (i) small to medium sized enterprises (the "SME Partners") and (ii) large enterprise businesses (the "Enterprise Partners"). The Company's BaaS model is emerging which is expected to add additional fees including software licensing and usage fees. For more information visit our website at www.hankpayments.com.

Forward-Looking Statements

This news release may contain forward-looking statements (within the meaning of applicable securities laws) which reflect the Company's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts, and projections and include, without limitation, statements regarding the future success of the Company's business. Financial performance figures in Canadian Dollars unless otherwise indicated by "U" representing United States Dollars.

The forward-looking statements in this news release are based on certain assumptions, including without limitation the Shares beginning trading on the TSXV. The forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/220546