Hank Payments Enters Canadian Market; Signs Exclusive National License Agreement
Toronto, Ontario--(Newsfile Corp. - March 28, 2023) - Hank Payments Corp. (TSXV: HANK) ("Hank" or the "Company"), is a North American leader in consumer Fintech Software-as-a-Service ("SaaS") in the Banking-as-a-Service ("BaaS") market segment. The Hank base platform 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. Hank markets specific technology layers on top of the base platform and provides for enterprise customer and user experiences more tailored to market segments and use cases. The Company is pleased to announce the signing of a material license agreement.
Highlights of the National Technology License Agreement:
- Three-year license agreement with minimum base revenue of C$5,000,000 plus 22% maintenance revenue to be earned quarterly commencing in calendar 2023;
- Licensee is exclusive to the Canadian Territory for the term, with customary renewals to support recurring long-term nature of Hank users;
- Licensee has exclusive protection on several entities outside of Canada for nine months, to allow licensee to close contracts already in discussion;
- Recurring user counts expected to exceed 130,000 by the end of year three with additional user licensing fees to be paid monthly for user counts exceeding contracted base counts;
- Additional 15% royalty to Hank on Licensee monthly revenues attributed to Hank products, in perpetuity and applied to users exceeding base counts;
"Over the past five months we have worked closely with our new Canadian partner to introduce the Hank platform to multiple enterprises with significant interest. We could not be happier with the certainty this agreement provides Hank, our new partners, and the prospects of helping consumers in the Canadian market." said 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. 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/licensee businesses (the "Enterprise Partners"). The Company's BaaS model is emerging and is expected to accumulate additional high margin fees including software licensing and usage fees. 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 email@example.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.
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