Hank Payments Executes Non-Binding Letter of Intent to Acquire USA Based Mortgage Payment Platform Company

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[{"type":"text","content":"Hank Payments Executes Non-Binding Letter of Intent to Acquire USA Based Mortgage Payment Platform CompanyToronto, 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; andIssuance 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 subje...

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