Hank Payments Enters into Non-Binding LOI to Acquire a Technology Platform Company

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[{"type":"text","content":"Hank Payments Enters into Non-Binding LOI to Acquire a Technology Platform CompanyToronto, 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 Prope...

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