Hank Payments Closes Equity Financing and Shares for Debt Transaction

Hank Payments Corp. (TSXV: HANK), an emerging leader in the Banking-as-a-Service (BaaS) market, has announced the successful closing of its equity financing and shares for debt transaction. The Company raised funds and reduced debt obligations through these transactions, positioning itself for future growth and expansion.

Equity Financing

Hank Payments completed a non-brokered private placement offering of 11,666,667 common shares at a price of $0.03 per share, raising a total of $350,000. The Company expects to use the proceeds from this placement for debt repayment and working capital purposes. Shares issued pursuant to the placement will be subject to a statutory four-month and one-day hold period from the date of closing.



Shares for Debt Settlement

Hank Payments also announced agreements with certain creditors for the settlement of amounts owing in the aggregate amount of $461,675 in exchange for the issuance of an aggregate of 13,764,163 shares. The Debt Settlements include shares issued for principal and interest owed to arm-length and related parties, as well as fees owed to former directors and arms-length parties. The settlement of an aggregate of $143,342 with three of the Company's management and board members constitutes a related party transaction.

Impact on Capital Structure and Financial Flexibility

The equity financing and shares for debt transaction impact Hank Payments' capital structure and financial flexibility in several ways:

1. Dilution and Shareholder Value: By issuing new shares, Hank Payments dilutes the value of existing shares. However, the Company expects the synergies and growth opportunities from the acquisition of FUTR Inc. to offset this dilution and enhance shareholder value in the long run.
2. Debt Repayment: The equity financing allows Hank Payments to repay debt obligations, improving its financial flexibility and liquidity.
3. Shares for Debt Settlement: The settlement of amounts owing to creditors in exchange for shares reduces Hank Payments' cash outflows and improves its working capital, while also reducing debt obligations and enhancing financial flexibility.

In conclusion, Hank Payments' successful closing of the equity financing and shares for debt transaction demonstrates the Company's commitment to raising capital, reducing debt, and improving its financial flexibility. These transactions position Hank Payments for future growth and expansion in the Banking-as-a-Service (BaaS) market.