XTM Closes Over-Subscribed Private Placement for Gross Proceeds of more than $8.5 million
OCTOBER 1, 2021
MIAMI, TORONTO, October 1, 2021 – XTM, Inc. (“XTM” or the “Company”) (QB: XTMIF / CSE:PAID / FSE:7XT), a Miami and Toronto-based Fintech company in the neo-banking space, providing mobile banking and payment solutions for the hospitality and personal care industries throughout North America, is pleased to announce that on Wednesday, September 29 it closed a non-brokered private placement offering (the "Offering") of 21,398,256 units of the Company (“Units”) at a price of $0.40 per Unit, for gross proceeds of $8,559,302.40.
“This over-subscribed Offering demonstrates our strength in the market and the confidence that investors have in our growth momentum” said Marilyn Schaffer, XTM CEO. “We expect to use the proceeds from the Offering in part to support the launch of our ambitious U.S. expansion plan. Canada is in a strong market and XTM’s position in the Canadian hospitality industry has experienced steady growth. The U.S. will provide added opportunity for the Company while we continue to gain a stronghold in Canada. XTM’s overall growth strategy is both ambitious and responsible, and we are very excited about new prospects and added value for our shareholders.”
Each Unit consists of one common share in the capital of the Corporation (each a "Common Share") and one warrant exercisable for one additional Common Share at a price of $0.65 for a period of 24 months after closing (“Warrants”). In the event that the volume-weighted average price (VWAP) of the Common Shares on the Canadian Securities Exchange or a recognized Canadian stock exchange is equal to or greater than $1.00 over a ten consecutive trading day period, XTM may at its option accelerate the expiry of the Warrants by issuing a press release (a “Warrant Acceleration Press Release”) and in such case the expiry of the Warrants shall be deemed to be on the 30th day following the issuance of the Warrant Acceleration Press Release.
The Securities issued are subject to a four-month hold period under securities laws. XTM anticipates that the net proceeds of the Offering will be used for general working capital purposes and future strategic acquisitions.
An aggregate cash finder’s fee of $684,744 (representing 8% of the gross proceeds) and 1,711,860 finder warrants (“Finder Warrants”), with the same exercise price and other terms as the Warrants (representing 8% of the number of Units issued), was paid to finders in respect of the Offering.
XTM, www.xtminc.com, is a Miami and Toronto-based fintech innovator in the neo-banking space, helping businesses and service workers in the hospitality and personal care space disseminate and access earned wages and gratuities. XTM's Today™ Solution, comprised of a free mobile app and a Visa or Mastercard debit card with free banking features, is used by thousands of restaurants, salons and staff across Canada and the United States. XTM is a real-time payment specialist and our technology is used by Restaurants and Salons at no charge to automate and expedite worker payouts and eliminate cash from their ecosystems. XTM's Today solution drives enterprise value with efficiency and a bespoke user experience designed specifically for restaurateurs and personal care services.
For further information please visit xtminc.com or contact:
This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws (the “forward-looking statements”), within the meaning of applicable Canadian securities legislation. Forward-looking information is not a guarantee of future performance or results, since it involves risks and uncertainties. There is no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in forward-looking statements. Some of the factors on which the forward-looking statements are premised include (but are not limited to) the satisfaction or waiver of the conditions to the completion of the private placement, the receipt of the approval of the Canadian Securities Exchange, and the lack of material changes to general economic, market and business conditions. The CSE has not approved nor disapproved the contents of this press release, and the CSE does not accept responsibility for the adequacy or accuracy of this release.