Investor Relations

Jason Ewart

Director and Executive Vice President, Capital Markets

The hank payments logo is blue and white on a white background

HANK PAYMENTS ANNOUNCES NEW CONVERTIBLE DEBENTURE FINANCING AND EXISTING CONVERTIBLE DEBENTURE CONVERSION INDUCEMENT PROGRAM

October 3, 2024

Toronto, Ontario, October 2, 2024 - Hank Payments Corp. (“Hank” or the “Company”) (TSXV: HANK), 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 announces that it will conduct a non-brokered private placement offering (the “Offering”) of up to 1,000 units (“Units”) at $1,000 per Unit for gross proceeds of up to $1,000,000. Each Unit consists of one $1,000 secured convertible debenture (“Debentures”) and 10,000 common share purchase warrants (“Warrant”). Each Warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.075 per common share for a period of two years from issuance.


The Debentures mature three years from the date of issue (the “Term”) and bear interest at a fixed rate of 10% per annum, payable in arrears semi-annually on December 31 and June 30 of each year.  The Debentures are secured by the assets of the Company through a general security agreement and rank equally with all other Debentures. At any time during the Term, a holder of Debentures may elect to convert the outstanding net principal amount, or any portion thereof, into common shares at a conversion price of $0.05 per share during the first year and $0.10 per share thereafter (the “Conversion Price”). The Company may force the conversion of the principal amount of the then outstanding Debentures (i) at any time at the Conversion Price on not less than 5 days’ notice if the volume weighted average trading price of the common shares on the TSX Venture Exchange (the “TSXV”) for any 10 consecutive trading day period is equal to or greater than $0.20; (ii) immediately prior to completion of a change of control; or (iii) on the maturity date. The Company may also elect to convert the interest owing at the then market price of its common shares at the time the interest becomes payable or upon a change of control, in accordance with applicable TSXV rules. 


The proceeds from the Offering will principally be used for debt repayment and general working capital. All securities issued pursuant to the Offering are subject to a statutory hold period of four months and a day from closing. The Offering is subject to TSX Venture Exchange acceptance of regulatory filings.

 

The securities offered pursuant to the Offering 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 Company also announces that it will amend certain terms of its existing outstanding $2,544,000 convertible debentures (each, an “Existing Debenture”), for a thirty (30) day period (the “Debenture Amendment”), in connection with the private placements of debenture units consisting of $1,000 principal amount of 10% Existing Debentures on December 15, 2022, April 13, 2023, June 15, 2023 and January 30, 2024. Hank also intends to settle up to $200,732.05 of interest owing in connection with the Existing Debentures by issuance of up to 4,014,641 common shares of Hank. The Debenture Amendment remains subject to TSX Venture Exchange acceptance of regulatory filings.


Prior to the Debenture Amendment taking effect, the Existing Debentures are convertible into common shares of the Company (each, a “Debenture Share”) at a price of $0.10 per Debenture Share. Commencing on October 2, 2024 and ending on November 2, 2024 (the “Inducement Period”), the conversion price of the Existing Debentures will be amended from $0.10 per Debenture Share to $0.05 per Debenture Share. After the expiry of the Inducement Period, the conversion price of the Existing Debentures will revert to $0.10 per Debenture Share.     


About Hank Payments Corp. 


Hank Payments Corp (the Company or “Hank”) is a North American leader in consumer Fintech Software-as-a-Service (SaaS) and Banking-as-a-Service (BaaS) platforms that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Hank stack provides for several vertical market applications of the technology, with features specific to channels and enterprise accounts (“Partners”) that allow those partners to operate new lines of business and revenue streams, using Hank. The Partners benefit from new revenue streams and powerful insights that open up additional opportunities for Partners to grow assets using Hank. The Company operates exclusively across the USA, with certain leadership and technology functions in Toronto. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. Hank currently charges upfront enrolment/setup fees and recurring monthly fees based on the types and quantity of payments that Hank Payments administers for the consumer (the “Users”). The Company acquires Users through various channels including (i) small to medium sized enterprises (the “SME Partners”) and (ii) large enterprise businesses (the “Enterprise Partners”). The Company’s BaaS model is emerging which is expected to add additional fees including software licensing and usage fees. For more information visit our website at www.hankpayments.com.

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. Financial performance figures in Canadian Dollars unless otherwise indicated by “U” representing United States Dollars.

 

The forward-looking statements in this news release are based on certain assumptions, including without limitation the Shares beginning trading on the TSXV. 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: Jason Ewart, EVP Capital Markets, at 416-580-0721. For Investor Relations please contact ir@hankpayments.com and visit the Company’s website at https://ir.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.

 


January 23, 2025
Toronto, Ontario, January 23, 2025 - Hank Payments Corp. ( “Hank” or the “Company” ) (TSXV: HANK), 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 Acquisition · Clarus 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 4,325,000 common shares of Hank on closing at a per share value of $0.05 per share; and · all shares issued pursuant to the Acquisition are subject to a contractual lock-up and leak- out agreement whereby the shares will be released as to 1/3 on July 1, 2025, January 1, 2026 and July 1, 2026. The first 1/3 can be released earlier then July 1, 2025 if the common shares of Hank trade on the TSX Venture Exchange (or other recognized stock exchange) for 10 consecutive trading days at a volume weighted average price of $0.10 per share or greater, subject to the Board of Directors concluding in their sole discretion, such release will not materially impact the then stock price and trading activity beyond what would be expected given such a release from escrow. Immediately prior to completion of the Acquisition, Hank will issue an aggregate of 14,898,420 common shares to the arm’s length holders of convertible debentures that were issued on November 2, 2024 in the amount of $744,921 (the “ Debentures ”), which will automatically convert pursuant to their terms at a price of $0.05 per share. The Company will also repay the interest owing on the Debentures in cash upon conversion. The Company also intends to complete a non-brokered private placement (the “ Placement ”) offering of 11,666,667 common shares (“ Shares ”) at a price of $0.03 per Share for the aggregate principal amount of $350,000. The Company expects to close the Placement prior to completion of the Acquisition. It is expected that the proceeds of the Placement will be used for debt repayment and working capital purposes. Shares issued pursuant to the Placement will be subject to a statutory four-month and one day hold period from the date of closing. The Company is also pleased to announce agreements with certain creditors for the settlement of amounts owing in the aggregate amount of $461,675 in exchange for the issuance of an aggregate of 13,764,163 shares (the “ Debt Settlements ”). The Debt Settlements are also expected to close prior to completion of the Acquisition. The Debt Settlements include shares issued for $195,745 (6,591,508 shares) and $143,345 (4,760,895 shares) of principal and interest owed to arm-length and related parties respectively. Further fees owed to former directors of the Company and arms-length parties of $85,588 (1,711,760 shares) and $35,000 (700,000 shares) are included in the Debt Settlements. The Debt Settlements include the settlement of an aggregate of $143,342 with three of the Company’s management and board members (the “ Related Creditors ”) in exchange for the issuance of an aggregate of 4,760,895 Debt Shares. The issuance of the Debt Shares to the Related Creditors constitutes a "related party transaction" as this term is defined in Multilateral Instrument 61-101: Protection of Minority Securityholders in Special Transactions (“ MI 61-101 ”). The independent directors of the Company, acting in good faith, determined that the fair market value of the Debt Shares being issued pursuant to the shares for debt transaction and the consideration being paid is reasonable. The Company intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and (b) and 5.7(1)(a) of MI 61-101 as neither the fair market value of the Debt Shares nor the debt exceeds 25% of the Company's market capitalization. All securities issued pursuant to the Debt Settlements are subject to a four-month and one day hold period from the date of closing. The securities offered pursuant to the Placement and the Debt Settlements 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. About Hank Payments Corp. Hank Payments Corp (the Company or “Hank”) is a North American leader in consumer Fintech Software-as-a-Service (SaaS) and Banking-as-a-Service (BaaS) platforms that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Hank stack provides for several vertical market applications of the technology, with features specific to channels and enterprise accounts (“Partners”) that allow those partners to operate new lines of business and revenue streams, using Hank. The Partners benefit from new revenue streams and powerful insights that open up additional opportunities for Partners to grow assets using Hank. The Company operates exclusively across the USA, with certain leadership and technology functions in Toronto. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. Hank currently charges upfront enrolment/setup fees and recurring monthly fees based on the types and quantity of payments that Hank Payments administers for the consumer (the “Users”). The Company acquires Users through various channels including (i) small to medium sized enterprises (the “SME Partners”) and (ii) large enterprise businesses (the “Enterprise Partners”). The Company’s BaaS model is emerging which is expected to add additional fees including software licensing and usage fees. For more information visit our website at www.hankpayments.com.  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. Financial performance figures in Canadian Dollars unless otherwise indicated by “U” representing United States Dollars. 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: Jason Ewart, EVP Capital Markets, at 416-580-0721. For Investor Relations please contact ir@hankpayments.com and visit the Company’s website at https://ir.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.
December 12, 2024
Toronto, Ontario, December 12, 2024 - Hank Payments Corp. ( “Hank” or the “Company” ) (TSXV: HANK), 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 the appointment of Peter McRae as an independent director of the Company and Chairperson of the Audit Committee. Mr. McRae is a Chartered Professional Accountant and a graduate of the Director’s Education Program of the Institute of Corporate Directors with an ICD.D designation. Mr. McRae was the President and CEO, of Freedom International Brokerage Company, Canada’s largest inter-dealer broker and is also currently an independent Director of Bank of New York Trust Company of Canada, serving on the Audit and Human Resources Committee. "We are excited to welcome Mr. McRae to our board of directors. Peter brings a wealth of experience within global financial markets, and we look forward to working with him." commented Michael Hilmer, Chairperson and CEO. About Hank Payments Corp. Hank Payments Corp (the Company or “Hank”) is a North American leader in consumer Fintech Software-as-a-Service (SaaS) and Banking-as-a-Service (BaaS) platforms that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Hank stack provides for several vertical market applications of the technology, with features specific to channels and enterprise accounts (“Partners”) that allow those partners to operate new lines of business and revenue streams, using Hank. The Partners benefit from new revenue streams and powerful insights that open up additional opportunities for Partners to grow assets using Hank. The Company operates exclusively across the USA, with certain leadership and technology functions in Toronto. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. Hank currently charges upfront enrolment/setup fees and recurring monthly fees based on the types and quantity of payments that Hank Payments administers for the consumer (the “Users”). The Company acquires Users through various channels including (i) small to medium sized enterprises (the “SME Partners”) and (ii) large enterprise businesses (the “Enterprise Partners”). The Company’s BaaS model is emerging which is expected to add additional fees including software licensing and usage fees. For more information visit our website at www.hankpayments.com. 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. Financial performance figures in Canadian Dollars unless otherwise indicated by “U” representing United States Dollars. 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: Jason Ewart, EVP Capital Markets, at 416-580-0721. For Investor Relations please contact ir@hankpayments.com and visit the Company’s website at https://ir.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.
December 2, 2024
Toronto, Ontario, November 29, 2024 - Hank Payments Corp. ( “Hank” or the “Company” ) (TSXV: HANK), 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 its first quarter financial results for the period ending September 30, 2024. All figures are in CAD. FIRST QUARTER FINANCIAL HIGHLIGHTS · Revenue for the first quarter ending September 30, 2024, was $2.04 MM, an increase of 29% over the September 2023 quarter; · Gross margins remain strong at 91%; · Adjusted loss from operations for Q1 improved by 61% to $199,139 as compared to Q1, 2023 of $507,797, and a 17% improvement over the quarter ended June 2024, $239,986; · The Company continues prioritizing positive cash flow and EBITDA from operations and is focused on growth of high margin revenue while investing carefully in technology and marketing. SUBSEQUENT EVENTS POST QUARTER: · The Company improved its balance sheet through two material events i) Closing of a non- brokered private placement of a convertible debenture for total gross proceeds of $744,921 and ii) The conversion of $2,544,000 of legacy convertible debentures and $200,732 of related interest into an aggregate of 54,894,640 common shares of the Company, both events occurring in November; · The Company continues towards the closing of its acquisition announced in August and has early interest from customers in using the technology being acquired and the Company believes that in time the transaction will create meaningful value. Michael Hilmer, CEO and Chairperson commented “We continue to focus on operational and financial efficiencies as well as driving opportunistic and strategic transactions that we expect to provide meaningful value over time.” A comprehensive discussion of Hank’s financial position and results of operations is provided in the financial statements and MD&A for the three month period ending September 30, 2024, filed on SEDAR. About Hank Payments Corp. Hank Payments Corp (the Company or “Hank”) is a North American leader in consumer Fintech Software-as-a-Service (SaaS) and Banking-as-a-Service (BaaS) platforms that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Hank stack provides for several vertical market applications of the technology, with features specific to channels and enterprise accounts (“Partners”) that allow those partners to operate new lines of business and revenue streams, using Hank. The Partners benefit from new revenue streams and powerful insights that open up additional opportunities for Partners to grow assets using Hank. The Company operates exclusively across the USA, with certain leadership and technology functions in Toronto. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. Hank currently charges upfront enrolment/setup fees and recurring monthly fees based on the types and quantity of payments that Hank Payments administers for the consumer (the “Users”). The Company acquires Users through various channels including (i) small to medium sized enterprises (the “SME Partners”) and (ii) large enterprise businesses (the “Enterprise Partners”). The Company’s BaaS model is emerging which is expected to add additional fees including software licensing and usage fees. For more information visit our website at www.hankpayments.com. 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. Financial performance figures in Canadian Dollars unless otherwise indicated by “U” representing United States Dollars. 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: Jason Ewart, EVP Capital Markets, at 416-580-0721. For Investor Relations please contact ir@hankpayments.com and visit the Company’s website at https://ir.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.
November 6, 2024
Toronto, Ontario, November 4, 2024 - Hank Payments Corp. (“ Hank ” or the “ Company ”) (TSXV: HANK), 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 respond to the press release that was issued by Melrose Ventures (the “Melrose Group”) on November 4, 2024. The Company believes that the take-over offer is without merit and the claims made by the Melrose Group in the press release are baseless and defamatory. The Melrose Group are not the business founders of Hank. Hank does not owe any debts to the Melrose Group, as is evidenced in the Company’s financial statements. There have been no insider reports, early warning reports or press releases filed regarding the Melrose Group’s claim of an ownership position exceeding 10% of the Company. These are regulatory requirements, and their statement of a greater than 10% ownership of Hank is in violation of the regulations given no filings have been completed. The Melrose Group have been informed of these requirements by the Company in the past and they have not provided any proof of ownership of shares of Hank. The Group states that their intention is to purchase a minimum of 8.5 mm shares of the Company to “bring our stake above 51%” does not make any sense based on the number of issued and outstanding shares of the Company being 132,720,376 as of November 1, 2024. On Saturday, November 2, 2024, the Melrose Group sent an email to the Company of its intention to submit a takeover bid and then on November 3rd they sent another email threatening to issue a news release. There was no formal take-over offer provided to the Company on November 2nd. The Melrose Group attempted to extract non-public information regarding the Company and its ongoing transaction announced in September 2024. To be clear, no formal takeover bid has been provided by Melrose Group and they have not adhered to any of the rules and regulations required in order to make a proper takeover bid to Hank’s shareholders. The Company will only respond to a bona fide takeover bid that is in accordance with the rules and regulations that govern such a transaction. This is not that and the Company will not respond further to baseless press releases provided by the Melrose Group.  The Company is continuing with the acquisition announced in August, has grown revenues meaningfully and has early interest from customers in using the technology being acquired and the Company believes that in time the transaction will create meaningful value. About Hank Payments Corp. Hank Payments Corp (the Company or “Hank”) is a North American leader in consumer Fintech Software-as-a-Service (SaaS) and Banking-as-a-Service (BaaS) platforms that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Hank stack provides for several vertical market applications of the technology, with features specific to channels and enterprise accounts (“Partners”) that allow those partners to operate new lines of business and revenue streams, using Hank. The Partners benefit from new revenue streams and powerful insights that open up additional opportunities for Partners to grow assets using Hank. The Company operates exclusively across the USA, with certain leadership and technology functions in Toronto. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. Hank currently charges upfront enrolment/setup fees and recurring monthly fees based on the types and quantity of payments that Hank Payments administers for the consumer (the “Users”). The Company acquires Users through various channels including (i) small to medium sized enterprises (the “SME Partners”) and (ii) large enterprise businesses (the “Enterprise Partners”). The Company’s BaaS model is emerging which is expected to add additional fees including software licensing and usage fees. For more information visit our website at www.hankpayments.com. 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. Financial performance figures in Canadian Dollars unless otherwise indicated by “U” representing United States Dollars. 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: Jason Ewart, EVP Capital Markets, at 416-580-0721. For Investor Relations please contact ir@hankpayments.com and visit the Company’s website at https://ir.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.
November 2, 2024
Toronto, Ontario, November 2, 2024 - Hank Payments Corp. (“ Hank ” or the “ Company ”) (TSXV: HANK), 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 announces it has closed the non-brokered private placement of 744 units (“Unit”) for total gross proceeds of $744,921 (the “Offering”) announced on October 2, 2024. Each Unit consists of one $1,000 secured convertible debenture (“Debentures”) and 10,000 common share purchase warrants (“Warrant”). The Debentures mature on and become payable on November 1, 2029, (the “Term”) and bear interest at a fixed rate of 10% per annum, payable in arrears semi-annually on December 31 and June 30 of each year. The Debentures are secured by the assets of the Company through a general security agreement and rank equally with all other Debentures. At any time during the Term, a holder of Debentures may elect to convert the outstanding net principal amount, or any portion thereof, into common shares at a conversion price of $0.05 per share during the first year and $0.10 per share thereafter (the “Conversion Price”). The Company may force the conversion of the principal amount of the then outstanding Debentures (i) at any time at the Conversion Price on not less than 5 days’ notice if the volume weighted average trading price of the common shares on the TSX Venture Exchange (the “TSXV”) for any 10 consecutive trading day period is equal to or greater than $0.20; (ii) immediately prior to completion of a change of control; or (iii) the entering into of a merger, amalgamation, arrangement or other reorganization by the Corporation with another unrelated corporation resulting in the acquisition of 20% of issued and outstanding Common Shares of the resultant Corporation by a person or group of persons acting jointly or in concert; or (iv) on the maturity date. The Company may also elect to convert the interest owing at the then market price of its common shares at the time the interest becomes payable or upon a change of control, in accordance with applicable TSXV rules. Each Warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.075 per common share for a period of two years from issuance. The proceeds from the Offering will principally be used for debt repayment and general working capital. All securities issued pursuant to the Offering are subject to a statutory hold period of four months and a day from closing. The Offering is subject to TSX Venture Exchange acceptance of regulatory filings . Further to our October 2, 2024, news release, an aggregate principal amount $2,544,000, 10% secured convertible debentures and $200,732 of related interest were converted into an aggregate of 54,894,641 common shares of the Company (the “Debenture Conversion”). The Company also issued 4,677,084 common shares pursuant to the redemption of previously granted and outstanding restricted share units of the Company (the “RSU Issuance”).  All securities issued pursuant to the Offering and Debenture Conversion are subject to statutory hold periods. The Offering and Debenture Conversion are subject to TSX Venture Exchange acceptance of regulatory filings. The securities offered pursuant to the Offering 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. About Hank Payments Corp. Hank Payments Corp (the Company or “Hank”) is a North American leader in consumer Fintech Software-as-a-Service (SaaS) and Banking-as-a-Service (BaaS) platforms that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Hank stack provides for several vertical market applications of the technology, with features specific to channels and enterprise accounts (“Partners”) that allow those partners to operate new lines of business and revenue streams, using Hank. The Partners benefit from new revenue streams and powerful insights that open up additional opportunities for Partners to grow assets using Hank. The Company operates exclusively across the USA, with certain leadership and technology functions in Toronto. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. Hank currently charges upfront enrolment/setup fees and recurring monthly fees based on the types and quantity of payments that Hank Payments administers for the consumer (the “Users”). The Company acquires Users through various channels including (i) small to medium sized enterprises (the “SME Partners”) and (ii) large enterprise businesses (the “Enterprise Partners”). The Company’s BaaS model is emerging which is expected to add additional fees including software licensing and usage fees. For more information visit our website at www.hankpayments.com . 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. Financial performance figures in Canadian Dollars unless otherwise indicated by “U” representing United States Dollars. 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: Jason Ewart, EVP Capital Markets, at 416-580-0721. For Investor Relations please contact ir@hankpayments.com and visit the Company’s website at https://ir.hankpayments.com/
October 28, 2024
Toronto, Ontario, October 28, 2024 - Hank Payments Corp. (“ Hank ” or the “ Company ”) (TSXV: HANK), 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 its fourth quarter and year end financial results for the period ending June 30, 2024. All figures are in CAD. FINANCIAL HIGHLIGHTS Revenue for the fourth quarter ending June 30, 2024, exceeded $1.98 MM, an increase of 41% over the June 2023 quarter; Full year revenue of $7.38 MM, an increase of 25% year over year; Adjusted loss from operations for Q4 improved by 17% to $239,986 as compared to Q3, 2024, as a result of continued increase in revenues and lower operating expenses; Company continues prioritizing positive cash flow and EBITDA from operations and is focused on growth of high margin revenue while investing carefully in technology and marketing. Over the past year, the Company has been focused on driving organic growth through new Enterprise Partner agreements given the size and value of the overall opportunity and scalable consumer acquisition model. The Company will continue to innovate with new features that help clients and the enterprises that serve consumers to better manage and monitor their respective financial goals and performance. New products and features are expected to increase retention and profitability of consumer and enterprise partner relationships. Consistent with the previous quarter, Hank continued to experience growing revenues for the quarter ending June 30, 2024. The Company incurred an adjusted loss from operations of $239,986 in Q4, 2024 compared to an adjusted loss from operations of $288,123 in the previous quarter, an improvement of 17%. The decreased adjusted loss for the quarter is due to an increase in revenues providing higher gross profit and lower operating expenses. The Company incurred a loss from operations of $308,103 in Q4, 2024 as compared to a loss from operations of $452,468 in the previous March 2024 quarter an improvement of 32%. Revenue increased by $1,477,971 or 25% for the year ended June 30, 2024, in comparison to the year ended June 30, 2023. The increase was primarily due to the launch in September 2023 of a new licensing agreement, and the addition of new revenue streams from education. The Company recorded an adjusted loss from operations of $1,182,127 for the year ended June 30, 2024, compared to adjusted loss from operations of $1,814,056 for the year ended June 30, 2023, an improvement of 35%. The Company recorded a loss from operations of $1,723,738 for the year ended June 30, 2024, compared to a loss from operations of $2,567,169 for the year ended June 30, 2023, an improvement of 33%. Michael Hilmer, CEO and Chairperson commented “We continue to focus on transactions and operational execution as well as technology advancement that accelerates growth and earnings, and we are pleased with the meaningful progress our team has made toward these goals.” A comprehensive discussion of Hank’s financial position and results of operations is provided in the financial statements and MD&A for the three and twelve month periods ending June 30, 2024, filed on SEDAR. About Hank Payments Corp. Hank Payments Corp (the Company or “Hank”) is a North American leader in consumer Fintech Software-as-a-Service (SaaS) and Banking-as-a-Service (BaaS) platforms that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Hank stack provides for several vertical market applications of the technology, with features specific to channels and enterprise accounts (“Partners”) that allow those partners to operate new lines of business and revenue streams, using Hank. The Partners benefit from new revenue streams and powerful insights that open up additional opportunities for Partners to grow assets using Hank. The Company operates exclusively across the USA, with certain leadership and technology functions in Toronto. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. Hank currently charges upfront enrolment/setup fees and recurring monthly fees based on the types and quantity of payments that Hank Payments administers for the consumer (the “Users”). The Company acquires Users through various channels including (i) small to medium sized enterprises (the “SME Partners”) and (ii) large enterprise businesses (the “Enterprise Partners”). The Company’s BaaS model is emerging which is expected to add additional fees including software licensing and usage fees. For more information visit our website at www.hankpayments.com. 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. Financial performance figures in Canadian Dollars unless otherwise indicated by “U” representing United States Dollars. The forward-looking statements in this news release are based on certain assumptions, including without limitation the Shares beginning trading on the TSXV. 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: Jason Ewart, EVP Capital Markets, at 416-580-0721. For Investor Relations please contact ir@hankpayments.com and visit the Company’s website at https://ir.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.
September 2, 2024
Toronto, Ontario, August 29, 2024 - Hank Payments Corp. (“ Hank ” or the “Company”) (TSXV: HANK), 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 contemplated that all the issued and outstanding shares of the Target will be acquired by the Company. Key terms of the transaction are as follows: 1) 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 approximately Cdn$7.2 million, not to exceed 49.9% of Hank shares outstanding at the closing of the transaction; 2) the majority of 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 shareholder or related entity will own directly or indirectly 10% of Hank post completion of the transaction; 3) the consideration shares will have a contractually imposed escrow and release schedule currently being finalized and subject to regulatory approval prior to closing; 4) the Company will accelerate the redemption date of 4,470,000 of its currently issued and outstanding Restricted Share Units subject to guidelines the TSX Venture Exchange; 5) a minimum of $3.94 MM of Hank’s liabilities, excluding working capital is to be settled prior to the closing of the transaction, which the Company expects to settle through issuance of common shares; 6) the Target will provide a non-interest bearing loan in the amount of $250,000 to the Company in the form of an unsecured promissory note that is repayable on the earlier of 6 months from the advance date or the closing of the transaction, in which the loan will settle into the consolidated Company; 7) Hank will assume the Target’s sole liability of $1 million owed to its parent, which will be repaid over 5 years at $16,667 per month without accruing any interest. At any time up to 12 months following closing, Hank can prepay $750,000 on top of what will have been paid monthly to date to retire this obligation; 8) advisory fees up to $1.425 million will be paid in shares of Hank expected to be 28.5 million shares issued to the advisor; and 9) Post the settlement of liabilities at current share price of $0.05, and assuming trading at current prices ($.05-$.06 per share), Hank expects to have a market capitalisation in the range of $7.1 and $7.6 million and will be issuing shares worth up to $7.2 million for the acquisition. 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 including independent valuation, and the execution of the Definitive Agreement and related commercial agreements. The potential transaction is not expected to be a Fundamental Transaction under the policies of the TSX Venture Exchange. About Hank Payments Corp. Hank Payments Corp (the Company or “Hank”) is a North American leader in consumer Fintech Software-as-a-Service (SaaS) and Banking-as-a-Service (BaaS) platforms that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Hank stack provides for several vertical market applications of the technology, with features specific to channels and enterprise accounts (“Partners”) that allow those partners to operate new lines of business and revenue streams, using Hank. The Partners benefit from new revenue streams and powerful insights that open up additional opportunities for Partners to grow assets using Hank. The Company operates exclusively across the USA, with certain leadership and technology functions in Toronto. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. Hank currently charges upfront enrolment/setup fees and recurring monthly fees based on the types and quantity of payments that Hank Payments administers for the consumer (the “Users”). The Company acquires Users through various channels including (i) small to medium sized enterprises (the “SME Partners”) and (ii) large enterprise businesses (the “Enterprise Partners”). The Company’s BaaS model is emerging which is expected to add additional fees including software licensing and usage fees. For more information visit our website at www.hankpayments.com. 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. Financial performance figures in Canadian Dollars unless otherwise indicated by “U” representing United States Dollars. The forward-looking statements in this news release are based on certain assumptions, including without limitation the Shares beginning trading on the TSXV. 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: Jason Ewart, EVP Capital Markets, at 416-580-0721. For Investor Relations please contact ir@hankpayments.com and visit the Company’s website at https://ir.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.
June 18, 2024
Toronto, Ontario, June 18, 2024 - Hank Payments Corp. (“ Hank ” or the “ Company ”) (TSXV: HANK), 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 further expansion of its US auto dealership originator base. The Company has signed and commenced the launch of a 31 auto store proof of concept program with a large auto dealer group with locations in 8 states. Since engaging, 2 stores have launched their offering of the Hank Payments platform to consumers and with the success of the proof of concept and all stores originating, the partner will represent over 10% growth from the 238 stores announced in April. Given the size of these stores, the contribution to new account originations could exceed 25%, once all stores are online, bringing total dealers to 269 with 57 added in 2024 alone. The partner is driving the roll-out schedule at this time. “We are very pleased that our profitable auto business continues to outperform our expectations by a significant margin so early in the calendar year. Growth from this channel is predictable, profitable and scalable and as the roll out of the new stores continues, growth from the Auto Channel will contribute improved cash flow through calendar year end and allow us to commence calendar 2025 ahead of our expected base of recurring automotive channel revenue.” commented Michael Hilmer, Chairperson and CEO. About Hank Payments Corp. Hank Payments Corp (the Company or “Hank”) is a North American leader in consumer Fintech Software-as-a-Service (SaaS) and Banking-as-a-Service (BaaS) platforms that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Hank stack provides for several vertical market applications of the technology, with features specific to channels and enterprise accounts (“Partners”) that allow those partners to operate new lines of business and revenue streams, using Hank. The Partners benefit from new revenue streams and powerful insights that open up additional opportunities for Partners to grow assets using Hank. The Company operates exclusively across the USA, with certain leadership and technology functions in Toronto. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. Hank currently charges upfront enrolment/setup fees and recurring monthly fees based on the types and quantity of payments that Hank Payments administers for the consumer (the “Users”). The Company acquires Users through various channels including (i) small to medium sized enterprises (the “SME Partners”) and (ii) large enterprise businesses (the “Enterprise Partners”). The Company’s BaaS model is emerging which is expected to add additional fees including software licensing and usage fees. For more information visit our website at www.hankpayments.com . 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. Financial performance figures in Canadian Dollars unless otherwise indicated by “U” representing United States Dollars. The forward-looking statements in this news release are based on certain assumptions, including without limitation the Shares beginning trading on the TSXV. 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: Jason Ewart, EVP Capital Markets, at 416-580-0721. For Investor Relations please contact ir@hankpayments.com and visit the Company’s website at https://ir.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.
May 31, 2024
May 31, 2024 - The Power Play by The Market Herald has announced the release of a new video interview with Chairperson and CEO, Michael Hilmer, of Hank Payments Corp. to discuss their latest news. Hank Payments (TSXV: HANK) Hank Payments announces their quarterly results and highlights for the quarter ending March 31, 2024. Link to the interview is below: https://stockhouse.com/video/thewatchlist/t4fwwM2I The Watchlist provides investors with a quick snapshot of what they need to know about the Company's latest press release through exclusive insights and interviews with the Company’s executives.
May 31, 2024
Toronto, Ontario, May 31, 2024 - Hank Payments Corp. (“ Hank ” or the “Company”) (TSXV: HANK), 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 provide its third quarter financial results for the period ending March 31, 2024. All figures are in CAD. FINANCIAL HIGHLIGHTS FOR FISCAL Q3, 2024 Revenue for the quarter of $1.9 mm, an increase of 31% over the March 2023 quarter; Revenue for the nine-month period ending March 31, 2024, grew 20% year over year to $5.4 mm; Gross margins remain strong at 91%; Short term expansion of adjusted loss from operations to accommodate new product and business development. This is expected to materially reduce in the following quarters as the Company benefits from growth in Auto and related margin, and lower operating costs. Consistent with previous quarter, Hank continued to experience strong revenues for the quarter ending March 31, 2024. The recent growth in revenue is primarily due to the Company beginning to recognize revenue from its Canadian licensing agreement starting in the first quarter of fiscal 2024. The licensing agreement has an initial term of three years with opportunity to both increase the revenue over time as well as renew and lengthen the term of the agreement. This agreement is expected to deliver minimum revenues of approximately $500,000 per quarter through first quarter of fiscal 2028. Overall operating expenses increased by 7% this quarter in comparison to the previous quarter and increased by 26% in comparison to the same quarter the previous year primarily due to the investment in sales and marketing related to the Hank EDU platform and preparation and design work for the Equity Builder Product. With additional schools joining the Hank EDU platform, increasing revenues are expected to offset the increase in costs in the coming quarters and with the recently announced Hank Equity Builder partnership, the Company expects to earn back its investment in product development as those two channels scale. The Company continues to prudently monitor expenses while supporting its revenue growth in the auto and EDU channels and now the Equity Builder Product. YEAR TO DATE BUSINESS HIGHLIGHTS AND UPDATES In early March, the Company entered into a strategic partnership with a NASDAQ listed fintech bank to offer enhanced consumer lending and savings program and payments services (link to press release: https://www.nasdaq.com/press-release/hank-payments-and-finwise-bank-enter-into-strategic-partnership-to-offer-enhanced ); Migration progress with FinWise Bank continues and expected to be completed in the third quarter which will help diversify Hank’s deposit composition and over time reduce the cost of funds through relationship banking and add new revenue line items; Auto channel customer growth of 32% year over year as of May 1 st and 26 new auto dealers have signed up with Hank so far in 2024; Over 238 active auto dealers in the US are now using the Hank platform to make warranty and insurance products more affordable, and to improve the build-up of vehicle equity for their customers; Total auto loan balance reductions, facilitated by Hank Auto on behalf of consumers are up 11.5% year over year to over $77,000,000; College agreements in the states of Texas, Oklahoma and South Carolina for the Hank EDU payments platform are now processing on a monthly basis; Hank EDU has disbursed over $900,000 USD to over 1100 college students since launching its EDU payment platform for the education market in late 2023; Several colleges are completing their integration phase and launching in the coming months; In May, the Company signed a strategic 5 year licensing agreement for the Hank Equity Builder product with HELO. HELO has the conditional exclusive right to resell Equity Builder and the Helo customizations in the US during the term provided that they deliver a minimum annual net subscriber growth of at least 30,000 new paying users annually (link to press release: https://www.newsfilecorp.com/release/211110 ). Michael Hilmer, CEO and Chairperson commented “We continued to diversify our revenue streams with innovative products that are quickly adopted in their target markets with new deals while our Auto business thrives. He added “The Company is prioritizing positive cash flow and EBITDA from operations and is focused on growth of high margin revenue while managing a relatively low operating cost model, relative to the growth opportunities available. We are nearing the period where our margin expansion drives full coverage of operating costs and all new business, as and when launched, will become accretive to the bottom line leading to near-term positive operating income as planned.” A comprehensive discussion of Hank’s financial position and results of operations is provided in the financial statements and MD&A for the nine-month period ending March 31, 2024, filed on SEDAR. About Hank Payments Corp. Hank Payments Corp (the Company or “Hank”) is a North American leader in consumer Fintech Software-as-a-Service (SaaS) and Banking-as-a-Service (BaaS) platforms that manages consumer cash flow and budgets on an automated basis using proprietary algorithms that collect, store and disburse cash as required to discharge obligations in a timely fashion. The Hank stack provides for several vertical market applications of the technology, with features specific to channels and enterprise accounts (“Partners”) that allow those partners to operate new lines of business and revenue streams, using Hank. The Partners benefit from new revenue streams and powerful insights that open up additional opportunities for Partners to grow assets using Hank. The Company operates exclusively across the USA, with certain leadership and technology functions in Toronto. Hank houses the complex technology, banking, treasury, customer service, sales and operations teams that acquire and service consumers. Hank currently charges upfront enrolment/setup fees and recurring monthly fees based on the types and quantity of payments that Hank Payments administers for the consumer (the “Users”). The Company acquires Users through various channels including (i) small to medium sized enterprises (the “SME Partners”) and (ii) large enterprise businesses (the “Enterprise Partners”). The Company’s BaaS model is emerging which is expected to add additional fees including software licensing and usage fees. For more information visit our website at www.hankpayments.com . 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. Financial performance figures in Canadian Dollars unless otherwise indicated by “U” representing United States Dollars. The forward-looking statements in this news release are based on certain assumptions, including without limitation the Shares beginning trading on the TSXV. 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: Jason Ewart, EVP Capital Markets, at 416-580-0721. For Investor Relations please contact ir@hankpayments.com and visit the Company’s website at https://ir.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.
More Posts
Share by: