Lynx Global Signs Definitive Agreement to Acquire a Controlling Interest in Arkin

Vancouver, British Columbia--(Newsfile Corp. - April 26, 2021) - Lynx Global Digital Finance Corporation (CSE: LYNX) (OTC Pink: CNONF) (FSE: 3CT), ("LYNX" or the "Company"), is pleased to announce that it has signed a definitive share purchase agreement (the "Agreement") in connection with its previously disclosed (see March 8, 2021, news release) acquisition (the "Acquisition") of a 51% equity interest in Australia-based Arkin Technologies Pty Ltd. ("Arkin").

Arkin is an Australian Transaction Reports and Analysis Centre ("AUSTRAC") registered holder of a Remittance license and Digital Currency Exchange Services Provider license in Australia. By including Arkin as one of Lynx's operating companies, Lynx will be able to able to offer its customers with both Money Transfer, and exchange and trade of money for digital currency and digital currency for money in that market.

"Adding Australia to our network of linked licensed operations is a significant step in our strategy to build a regional fintech payment platform. When this transaction is completed we will be connecting Singapore, Philippines and Australia as a single bi-directional remittance corridor that we can layer on the additional payment services from each operating company." Mike Penner, CEO, Lynx Global.

TRANSACTION DETAILS

The Acquisition is expected to close on or before April 30, 2021, or such other date as may be mutually agreed to by the parties (the "Closing Date"). Pursuant to the Agreement, on the Closing Date, the Company will acquire a 51% equity interest in the issued and outstanding common shares of Arkin in exchange for 1,114,364 common shares of the Company (the "Consideration Shares") and an option to purchase 250,000 common shares of the Company (the "Consideration Options") entitling the holders to acquire an additional 250,000 common shares of the Company ("Shares") at a price per Share equal to the closing price of the Shares on the last trading day prior to the Closing Date. The Consideration Options are exercisable for a period of two years from the Closing Date.

The Consideration Shares and any Shares issued upon exercise of the Consideration Options are subject to regulatory and voluntary pooling restrictions on resale in the following aggregate amounts until the following dates: (a) 70% of the Consideration Shares and any Shares issued upon exercise of the Consideration Options, shall be subject to restrictions on resale until the date which is four months plus one day from the Closing Date; (b) an additional 10% of the Consideration Shares and an additional 10% of any Shares issued upon exercise of the Consideration Options, shall be subject to restrictions on resale until the date which is one-hundred fifty (150) days from the Closing Date; (c) an additional 10% of the Consideration Shares and an additional 10% of any Shares issued upon exercise of the Consideration Options, shall be subject to restrictions on resale until the date which is one-hundred eighty (180) days from the Closing Date; and (d) an additional 10% of the Consideration Shares and an additional 10% of any Shares issued upon exercise of the Consideration Options, shall be subject to restrictions on resale until the date which is two-hundred ten (210) days from the Closing Date. 100% of the Consideration Shares and any Shares issued upon exercise of the Consideration Options will also be subject to a statutory hold period of four months and one day.

At the Closing Date, in connection with the Acquisition, the Company will issue 83,577 Shares, equaling 7.5% of the Consideration Shares (the "Finder's Fee"). All Shares issued as part of the Finder's Fee shall be subject to the same resale restrictions as the Consideration Shares as set out above.

The Acquisition will not constitute a fundamental change for the Company and will not result in a change of control of the Company (within the meaning of applicable securities laws and the policies of the Canadian Securities Exchange).

ABOUT LYNX GLOBAL DIGITAL FINANCE:

Since inception, LYNX has focused on development and deployment of its proprietary online marketplace platform. Integral to the true intent and directive of the long-term planning of these development efforts was an early-stage technology agreement to allow for integration of a payment and financial technology platform to facilitate merchant sales within its online platform. As such, since March 2017 the company has worked closely with payment technology providers in South East Asia, to ascertain the pathways to the greatest potential for future growth in the world's fastest growing digital payment markets. With the existence of ever-evolving international relationships with parties specifically focused on the facilitation of payment processing and bank acquiring infrastructure, the Company saw potential to increase revenue over time with the continued integration and utilization of complete payment processing capabilities within its online marketplace solutions.

LYNX seeks to become a global leader in financial technology, solutions, and services for merchants as it works hand in hand with select niche banking partners. LYNX intends to integrate PCI certified payment solutions with its proprietary and proven online marketplace technology platform to offer a truly comprehensive suite of products and services to serve B-to-B merchant clientele. The Company has targeted banking relationships outside of North America, (specifically in South East Asia), and by working with selected banking or licensed EMI partners, our solutions may include merchant acquiring solutions; integrated payment solutions; global eCommerce solutions; core processing and ancillary applications solutions; digital and online marketplace solutions, including internet, mobile and eBanking; fraud, risk management and compliance solutions; electronic funds transfer and network services solutions; and/or card and online retail payment solutions. The Company is focused on organic growth while investigating potential strategic acquisitions, that may contribute critical technology applications, services and immediate revenue streams that can complement or enhance our existing offerings and potentially increase or expedite our path to future profitability. While LYNX believes that significant near-term opportunities exist for the Company's solutions, there can be no assurance that customer agreements will be reached or that such agreements will be profitable should they be implemented.

For more information, please contact:

Michael Penner, CEO
(604) 396-9974
mpenner@lynxglobal.io

NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDERS HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

FORWARD-LOOKING STATEMENTS: Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation, including with respect to the completion of the Acquisition, the planned operations of the Company and any synergies created through the acquisition of a 51% equity interest in Arkin, Arkin providing the Company with the "Australian digital currency exchange and remittance licensing" to integrate into the LYNX pan-global financial ecosystem, LYNX becoming a global leader in in financial technology, solutions and services for merchants and the ability of the Company to grow organically or through strategic acquisitions. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be", or variations of such words and phrases or statements that certain actions, events, or results "will" occur. Forward-looking statements are based on the Company's estimates and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of LYNX and Arkin to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including capital expenditures, other costs, or implied future forecasts. There can be no assurance that the acquisition of a controlling interest in Arkin will be completed on the terms described herein, or at all. The Company further again cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: risks and uncertainties relating to the Company's limited operating history and the need to comply with governmental regulations. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and information. LYNX will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/81697

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