Game changing News XTM signs $3M (U.S.) earned-wage access licensing deal
2024-01-19 12:11 ET - News Release
Ms. Marilyn Schaffer reports
XTM INC. RECEIVES STRATEGIC INVESTMENT AND SIGNS LICENSING AGREEMENT
XTM Inc., further to its news releases of Dec. 13, 2023, and Dec. 18, 2023, of a non-brokered private placement offering for aggregate gross proceeds of up to $5-million (U.S.) of units of convertible debentures, has received $1.15-million (U.S.) from a strategic investor, and additional subscription agreements from its existing shareholders and others, with an expected close by Jan. 31, 2024. The company also announced that it has signed a $3-million (U.S.) licensing agreement for earned wage access (EWA) from a United States entity to provide processing for a U.S. banking-as-a-service provider.
On closing, proceeds of the debenture financing combined with the licensing agreement, the company will meet the covenants required to access the EWA lending facility.
With operational financing in place, the company will continue to aggressively compete to be among the top three EWA providers globally, with comparative valuations in the hundreds of millions to billions. The operational financing also opens the way for the company to fully rollout its contracted EWA business to employees through its distributor agreements.
The company continues active discussions and engagements within the human capital management (HCM) and payroll space to offer the AnyDay-certified EWA product to its customers under a licence as a managed-hosted solution, or as a stand-alone licence agreement with no managed services.
The closing is subject to certain conditions, including, but not limited to, the satisfaction of customary closing conditions and the receipt of regulatory approvals, including the approval of the Canadian Securities Exchange. There can be no assurance as to whether or when the proposed offering may be completed, or as to the actual size or specific terms of the offering.