XTM Partners with Pateno Payments for Major Investment Move

XTM Partners with Pateno Payments for Major Investment Move

XTM Inc. is excited to announce a significant development in its journey as a fintech leader. The company, known for its innovative payment solutions, including Earned Wage Access (EWA) via its AnyDay™ platform, has entered into discussions with Pateno Payments Inc. in a potential partnership that promises to reshape its future.

Details of the Proposed Transaction

In a recent announcement, XTM Inc. (CSE: PAID / FSE: 7XT) revealed an arms-length, non-binding Letter of Intent with Pateno, aimed at acquiring 51% of XTM's equity. This partnership is made possible by a substantial cash injection of $10 million from Pateno, designed to capitalize on XTM's operations and accelerate growth initiatives.

Strategic Growth and Future Outlook

With this proposed transaction, both XTM and Pateno are set to become one of the few entities in North America capable of offering fully integrated issuer/processors. This includes services like Daily Tip Disbursement and Earned Wage Access, expanding their reach in the competitive landscape of modern payment solutions.

XTM’s Vision and Leadership Comments

Jeff Smith, Chairman of the Board at Pateno, expressed his enthusiasm about the collaboration, highlighting the commitment to expand XTM's business plan across Canada and the U.S. “We are looking forward to creating long-term shareholder value,” said Smith, marking a promising outlook for the partnership.

Marilyn Schaffer, CEO of XTM, described the partnership as a synergistic step forward, enabling new opportunities and cost efficiencies. She noted, “XTM is positioned to meet the demands of its growth trajectory with a solid balance sheet and recent strategic Board additions.”

Equity Distribution Post-Transaction

Upon finalizing the Proposed Transaction, XTM shareholders are anticipated to maintain approximately 49% equity interest in the company, while Pateno will hold about 51%. Pateno, being a debt-free entity, will also bring essential fintech assets and a minimum cash reserve of $10 million CAD on the closing date.

Market Presence and Future Developments

With this merger, XTM expects its shares to continue trading on the Canadian Securities Exchange (CSE) or another mutually accepted stock exchange, maintaining transparency and accessibility for investors. As both companies move forward, they plan to provide further insights regarding this Proposed Transaction following the execution of a definitive agreement in the upcoming weeks.

The Importance of Due Diligence

The completion of this transformative partnership hinges on thorough due diligence and the satisfaction of various conditions. Stakeholders are advised that while negotiations are underway, there is no certainty that the definitive agreement will be finalized as intended.

About XTM Inc.

XTM Inc. stands at the forefront of the fintech sector, distinguishing itself through its innovative payment solutions tailored for diverse industries. Its flagship product, AnyDay™, allows workers in hospitality, personal care, and staffing sectors to access their earned wages on-demand, enhancing their financial flexibility.

With its subsidiary, QRails, XTM offers a robust cloud-based payment platform that empowers on-demand pay for workers and payroll providers worldwide. This commitment to innovation positions XTM as a key player in redefining payment solutions for modern businesses.

Frequently Asked Questions

What is the purpose of the partnership between XTM and Pateno?

The partnership aims to enhance XTM's payment solutions, specifically in Earned Wage Access, by leveraging Pateno's financial resources and capabilities.

What will Pateno gain from this investment?

Pateno aims to capitalize on XTM's established market position, expanding its portfolio in the fintech space and driving shared growth.

How does this impact XTM's shareholders?

XTM shareholders will retain 49% of the company, ensuring they remain invested in the company's growth and future prospects.

When is the expected completion of the Proposed Transaction?

The completion is subject to various conditions and is expected to occur in the coming weeks as due diligence and negotiations proceed.

What is XTM's main product offering?

XTM's flagship product, AnyDay™, provides on-demand access to earned wages, primarily targeting industries like hospitality and staffing.

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