Toronto, Ontario--(Newsfile Corp. - March 11, 2022) - Hank Payments Corp. (TSXV: HANK) ("Hank" or the "Company"), a North American financial technology company that uses powerful technology to automate the complexities of personal cash flow management on one centralized platform, is pleased to announce the execution of a non-binding letter of intent dated March 11, 2022, for the acquisition of a mortgage payment platform provider (the "Target") to the Company.
The Target has been curating mortgage payments in the mid-west for over 20 years through a network of over 1,500 mortgage brokers. Hank has been processing payments for the Target for over a year, and upon closing, will benefit from significant growth in all mortgage revenue and an increase in mortgage margin currently realized by the Target.
Jeff Guthrie, President and COO of Hank, commented, "The first acquisition represents an important milestone for Hank since becoming a public company in late 2021. The Target has built a wide-ranging network of mortgage brokers and has access to large scale originators that Hank will help unlock value from."
The Company will be purchasing the shares of the Target through its wholly-owned subsidiary, Hank Payments Corp., a corporation governed under the laws of Florida. Hank and the Target are expected to enter into a definitive share purchase agreement in the coming weeks with principal terms as follows:
- US$624,000 in common shares at a price per share equal to the greater of $0.15 per share or the closing price of Hank's stock the day prior to the closing date of the acquisition; and
- Issuance of convertible notes with a term of four years in the aggregate principal amount of US$624,000, bearing interest at eight percent per annum, payable quarterly. The principal amount of the notes will be repaid quarterly commencing on the twelve-month anniversary in equal installments. The notes are convertible at a price per share equal to the greater of $0.25 per share or 10% premium to the closing price of Hank's stock the day prior to the closing date of the acquisition.
All securities issued pursuant to the acquisition are subject to a statutory 4-month hold period from the closing date of the acquisition. The acquisition is subject to TSX Venture approval. The securities issued pursuant to the acquisition have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The acquisition is expected to close as soon practical and no later than April 15, 2022.
About Hank Payments Corp.
Hank is a financial technology company. The Hank software platform (the "Hank Platform") acts as a consumer's financial concierge using a powerful technology to automate the complexities of personal cash flow management. Through its FDIC (Federal Deposit Insurance Corporation) insured bank partners in the United States, Hank helps consumers in every state find funds in their existing cash flow and speed up the retirement of liabilities. The Hank Platform debits consumers when they have cash, stores the cash with partner banks, then automatically instructs partner banks to pay bills and loans as they come due, and often sooner than required. Approximately half of Hank's customers are financially sound and use the Hank Platform for convenience, while the other half improve their payment performance through the use of the Hank Platform. One hundred percent of Hank's customers are in the USA and pay setup and ongoing monthly processing fees while remaining on the Hank Platform for an average of three years. Hank continues to innovate and anticipates launching more expansive features to its expected growing customer base that will provide greater visibility into their cash flow, credit performance, and viability to borrow or refinance at lower rates, including introducing Hank customers to interested lenders.
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. The forward-looking statements in this news release are based on certain assumptions. 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
For more information regarding Hank Payments Corp., please contact: Investor Relations, ir@hankpayments.com and visit the Company's website at www.hankpayments.com.
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/116336
