Hank Payments Signs Strategic Agreement with Industry Expert to Penetrate Lending and Debt Repayment Management Market
Toronto, Ontario--(Newsfile Corp. - June 10, 2022) - Hank Payments Corp. (TSXV: HANK) ("Hank" or the "Company"), a North American leader in consumer Fintech Software-as-a-Service (SaaS) that supports consumer budgeting, cash management and payment automation through it's secure, modern, automated and best-in-class proprietary Cloud-based technology solution and related intellectual property (the "Hank Payment Platform") is pleased to announce it has entered into a long-term strategic agreement with an industry leading advisor to the tech-enabled business service and platform providers market (the "Strategic Partner"). The Strategic Partner will provide, amongst other things, qualified strategic introductions and licensing negotiations assistance in support of Hank acquiring new Enterprise SaaS accounts in the large and untapped lending and debt repayment management market (the "Market").
- Credible Strategic Partner to materially expand access into this large Market for Hank's SaaS platform
- In-the-funnel deals currently either being, or in the very near term will be, actively pursued that may exceed Enterprise SaaS user counts, in the near-term range of many hundreds of thousands of end user consumers, and expected to materially increase ARR (Annualized Recurring Revenue)
- Performance based deal assures alignment of interests with a very reasonable revenue share over time for deals won by Hank and introduced by the Strategic Partner
- Broadens company access to massive market by cost efficiently cultivating the Strategic Partner's existing relationships
Headquartered in the Northeastern United States, the Strategic Partner possesses almost a half-century of combined deep domain industry expertise and unparalleled experience acting as advisors in varying capacities to a number of companies within the Market. Their team has completed well over 100 mandates and generated over multiple billions of dollars in transaction value within various sectors, a large portion of which have been comprised of advising clients operating in the Market space across North America and beyond. After extensively evaluating the Hank Payment Platform, the Strategic Partner determined that their Enterprise clients and other relationships would be logical users. The Strategic Partner has earned trusted, front of the line decision maker access to some of the most reputable institutions in the Market and will support Hank in further penetrating and serving this vastly lucrative vertical.
Under this long-term year performance agreement, the Strategic Partner will receive a percentage fee of the revenue Hank generates from Enterprise SaaS licensing deals and other strategic commercial relationships which the Strategic Partner procures for Hank's benefit. Hank's industry leading gross margin profile - currently approaching 90% - comfortably supports this fee structure and allows for Hank to achieve expedited, low customer acquisition cost and qualified access to decision makers, with additional guidance to be provided by the Strategic Partner to Hank on crafting the commercial specifics of each new Enterprise SaaS licensing and other commercial relationships.
Michael Hilmer, Chairperson and CEO of Hank commented, "We are excited to be partnering with seasoned, proven business leaders and advisors at the Strategic Partner, who have a long and exceptional track record of successful outcomes in the lending and debt repayment management verticals, and we are delighted with the quality of introductions they have already made."
About Hank Payments Corp.
Hank is a SaaS based consumer Fintech company. One of the important vertical markets of the industry leading proprietary Cloud-based software Hank Payment Platform is to act as a consumer's financial budget manager using powerful technology and other intellectual property to automate a consumer's personal cash flow and payments. Through its FDIC (Federal Deposit Insurance Corporation) insured bank partners in the U.S., Hank helps consumers in all 50 States find funds in their existing cash flow and speed up the retirement of liabilities. The Hank Payment Platform instructs its banking partners to debit consumers when they have cash, store the money in FDIC insured accounts, then automatically pay bills and loans as they come due; often sooner than required. Approximately half of Hank's customers are financially sound, but time challenged and use the Hank Payments Platform for convenience, while the other half are looking to improve their on-time payment performance and improve their credit scores using Hank Payment Platform. Hank's customers pay setup and ongoing recurring monthly processing fees while remaining on the Hank Platform for an average of six years. Hank continues to innovate and anticipates launching more expansive state of the art features to its expected growing customer base to provide greater visibility into their cash flow, credit performance, and viability to borrow or refinance at lower rates, including introducing Hank customers to interested lenders. For more information visit our website at www.hankpayments.com.
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 firstname.lastname@example.org and visit the Company's website at www.hankpayments.com.
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