Hank Payments Provides Transaction Update and Announces Equity Financing and Shares for Debt Transaction

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[{"type":"text","content":"Hank Payments Provides Transaction Update and Announces Equity Financing and Shares for Debt TransactionToronto, Ontario--(Newsfile Corp. - January 23, 2025) - 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 information in respect of its previously announced acquisition of 100% of the shares of FUTR Inc. (the \"Target\"), a private technology company on August 20 and 29, 2024 (the \"Acquisition\"). The parties have now settled the definitive purchase agreement and are prepared to close on or about January 29, 2025.The Target will allow Hank to consume and store key customer data in a SOC 2 compliant and encrypted platform. This automates key compliance and KYC work for Hank while also providing value added digital vaults to the consumers to store critical personal documents such as loans, leases, insurance and other relevant documents relating to the consumer's financial journey. The Company is developing additional plans and applications for the platform and will provide further updates as warranted.The principal terms of the Acquisition remain the same as previously disclosed, with the following additional information being provided: as consideration for the purchase of all of the outstanding shares of the Target, it is expected that Hank will issue 172,949,626 common shares of Hank, which equates to a total equity value for the Target of approximately Cdn$8.6 million at a per share value of $0.05 per share; no one new shareholder or related entity will own directly or indirectly greater than 10% of Hank post completion of the Acquisition; Hank will assume the Target's liability of (i) $1M owed to its parent, which will be repaid beginning on August 1, 2025 in the amount of $16,667 per month until repaid, without accruing any interest and (ii) Cdn$130,000 promissory note owed to its parent coming due on July 2nd, 2026 and accruing interest at 18% a year; the Target will also have Cdn$260,000 in cash that will be assumed by Hank as part of the AcquisitionClarus Securities Inc., acted as advisor in connection of the Acquisition and will be paid an advisory fee of $216,250, which will be settled by way of issuance of 4,...

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