XTM Inc., a fintech company specializing in innovative payment solutions including Earned Wage Access (EWA) through its AnyDay platform, announced the execution on December 11, 2024 of an arms-length, non-binding Letter of Intent with Pateno Payments Inc. (“Pateno”) for the acquisition by Pateno of 51% of the equity of the XTM business in consideration for Pateno capitalizing the XTM business with a $10 million cash injection (the “Proposed Transaction”).
Pateno Payments is a payments products and services business.
“We are pleased to work with XTM on the expansion and execution of their business plan in Canada and the US, and look forward to creating long term shareholder value,” said Jeff Smith, Chairman of the Board, Pateno.
On closing of the Proposed Transaction, XTM and Pateno will be one of few, fully integrated issuer/processors offering Daily Tip Disbursement and Earned Wage Access in the United States, Canada and the UK.
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“XTM is thrilled to announce this union with Pateno, a synergistic partner creating new opportunities, empowering the consolidation of costs and positioning the company to increase revenue and accelerate profitability,” said Marilyn Schaffer. “With a solid balance sheet, strong Board additions and a disciplined finance strategy, XTM is positioned to meet the demands of its growth trajectory.”
Pursuant to the Term Sheet, it is proposed following the completion of the Proposed Transaction, XTM Shareholders are expected to hold approximately 49% equity interest in XTM and Pateno would hold approximately 51%. Pateno will include its fintech assets, clients, will be debt free and have a minimum of $10M CAD in cash on the date of closing. Following the closing of the transaction, it is expected that the shares of the successor issuer will continue to trade on the Canadian Securities Exchange (the “CSE”) or another stock exchange in Canada or the United States mutually acceptable to XTM and Pateno. The Company expects to announce additional details regarding the Proposed Transaction upon execution of a definitive agreement, which is expected to occur in the coming weeks. The completion of the Proposed Transaction is subject to, among other matters, the completion of due diligence, the final negotiation of a definitive agreement, satisfaction of the conditions negotiated therein, and approval of the Proposed Transaction by the shareholders, as and when applicable. There can be no assurance that a definitive agreement will be entered into or that the Proposed Transaction will be consummated on the terms or timeframe currently contemplated, or at all.
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Source – Businesswire
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