Hank Payments Provides Additional Information About Non-Binding LOI to Acquire a Technology Platform Company

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[{"type":"text","content":"Hank Payments Provides Additional Information About Non-Binding LOI to Acquire a Technology Platform CompanyToronto, Ontario--(Newsfile Corp. - August 29, 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 wishes to provide additional commentary on the announcement of its entering into a non-binding letter of intent dated August 19, 2024 (\"LOI\"), for the acquisition of 100% of the shares of a private technology company (the \"Target\").Transaction Terms:As previously announced, the material terms and conditions outlined in the LOI are non-binding on the parties and the LOI is, among other things, conditional on the execution of a definitive share purchase agreement (the \"Definitive Agreement\") to be negotiated between the parties. The Target is pre-revenue with meaningful investment in intellectual property that affords consumers and brands, like lenders, to be matched based on time-based needs that enable consumers to receive offers that may improve their financial lives. The Target has spent $250,000 in R&D expenses in the past year and owes $1.0 million in liabilities to its parent. As is common with technology companies, the Target has not capitalised any material assets as it has developed its platform, while creating valuable intellectual property which aligns with typical SAAS companies being light on assets but high on technology value given the recurring cash streams they generate. The Target has preferred pricing, service levels and long-term licensing agreements that will transfer with the sale that affords Hank and consumers the ability to securely store and access key personal documents related to their financial lives, including agreements with Hank, investment statements, loan documents and any other important documents that need to be easily accessible, searchable and actionable by the consumer. These licenses, underpinned by best-in-class content search and data correlation and bank level data encryption and security, have material value and the Company will, as part of the conclusion of the transaction, confirm it's estimates of value through an independent valuation.In connection with the proposed transaction, it is currently...

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