Hank Payments Executes Binding MOU for Exclusive Canadian License, Appoints Strategic Executive
Toronto, Ontario–(Newsfile Corp. – November 10, 2022) – Hank Payments Corp. (TSXV: HANK) (“Hank” or the “Company”), is a North American leader in consumer Fintech Software-as-a-Service (SaaS) that provides a platform that manages consumer cash flow and budgets on an automated basis using proprietary algorithms. Hank is pleased to announce that it has signed a binding Memorandum of Understanding (“MOU”) to enter into an exclusive negotiating period, to close a national license agreement for the use of the Hank technology platform in Canada, allowing the Company to enter a new country alongside a strong partner.
Highlights:
- An initial term of five years, underpinned by minimum monthly licensing fees approaching material user counts over time and is commensurate with meaningful penetration of the Canadian market;
- Additional licensing fees to be paid monthly as user counts exceed minimums;
- Potential to lengthen the exclusivity beyond five years given subscribed consumers are expected to continue to use the platform beyond the initial term;
- A customization and integration period to allow the parties to integrate with existing and new channels/suppliers/platforms that the licensee will deliver, including banking and regulatory compliant platforms;
- Licensee has provided a deposit of $150,000 and will invest $250,000 into the next available financing offered by Hank at then current pricing;
- Up to $500,000 in R&D work to be provided by the Company for customization. Market rates for customization over and above hours consumed by the initial R&D credit amount;
- Hank will provide platform hosting, segmented in Canada, dedicated to the licensee with customary support and related service levels;
- Expected definitive signing of licensing agreement, no later than January 30, 2023.
The Company also announces the appointment of Mr. John Cerny as Head of Strategic Partnerships and Chief Compliance Officer. Mr. Cerny has more than 30 years experience in the US banking sector, including roles as President, Chief Operating Officer and Chief Compliance Officer. He will be instrumental in supporting additional product ideation, innovation and regulatory compliant advancement of Hank products. His experience and network of strategic contacts in banking and within Hank’s developing markets are expected to accelerate Hank’s access to those markets. The addition of Mr. Cerny to the executive team is consistent with the Company’s focus on cost management and judiciously investing in revenue growth initiatives and preserves the previously announced lower operating cost base.
Prior to joining Hank, as President of a Regional Bank in Texas, he developed and oversaw the implementation of new business lines and comprehensive compliance management systems. Under his leadership, the Bank grew its assets and revenues significantly. Prior to that, Mr. Cerny was Senior Vice President Compliance and Risk Manager at an Idaho based Bank.
“We developed meaningful interest in our first country wide license and are very pleased with the progress we have made with our Canadian partner. After our due diligence, we grew very confident the volume of users they have access to will provide meaningful growth to Hank. We are also very excited to have John Cerny join in a fundamental and important executive capacity. John’s innovative style and fearless approach to new ideas and markets is refreshing and we are excited to build on the opportunities he has already identified,” said Michael Hilmer, Chairperson and CEO.
Mr. Cerny commented, “When I look at markets such as student and education related budget and cash management, as well as, medical payment management, among many others, I am extremely excited. Hank has the right solution at the right time for the problems facing the American and Canadian consumer. I look forward to contributing my ideas and network to growth acceleration.”
Hank also granted a total of 300,000 options of Hank, with an exercise price of $0.15 and an expiry date of November 1, 2024 and issued 250,000 restricted share units to two executives including Mr. Cerny. The options and RSUs are subject to the standard provisions of the Hank’s equity incentive plan.
About Hank Payments Corp.
Hank Payments Corp (the Company or “Hank”) is a North American leader in consumer Fintech Software-as-a-Service (SaaS) that provides a platform 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 Company historically operated 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 does not take balance sheet risk when managing loan and other household payments for Users as it does not lend funds or bridge cash shortfalls. All of Hank’s current revenues are derived from usage and licensing fees.
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. Several 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 because 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 www.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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/143850