XTM Closes Acquisition of Earned Wage Access Company QRails
As the First Fully Certified and Vertically Integrated Provider of EWA, QRails' Flagship Product, AnyDay™, Provides Leading Human Capital Management and Payroll Organizations With White Labelled EWA Solutions For Their Fortune 100 Companies
Last Updated: 25.3.2024 2:23
XTM Inc. (CSE: PAID) (OTCQB: XTMIF) (FSE: 7XT), a Miami and Toronto-based Fintech creator of disruptive payment innovations, is pleased to announce that it has completed its previously announced acquisition of QRails, under which XTM acquired all of the issued and outstanding shares of QRails from its existing shareholders for an aggregate purchase price of USD $3,500,000.00, which was paid through the issuance of 28,343,750 common shares of XTM at USD $0.12 (CDN $0.16) per share.
QRails is the first vertically integrated provider of fully certified Earned Wage Access (EWA), AnyDay™, white labelled by leading Human Capital Management and Payroll organizations providing EWA to the employees of their Fortune 100 companies.
XTM and QRails began working together upon signing their letter of intent (LOI) in May 2023, including planning and execution of resource, overhead and technology licensing efficiencies.
How Does EWA Work?
Earned Wage Access (EWA), also known as On-Demand Pay, allows employees to receive a portion of their wages before the regular pay date. This is not a loan. Any EWA disbursement taken will be deducted directly from your paycheck on payday.
With an AnyDay card (virtual and physical), you can pay bills, shop in-store and online, and transfer money directly to your bank account.
Also Read: XTM Reports 3X EWA Growth in the United States
Deal Terms
The transaction was structured as an agreement and plan of merger by and among the company, XTM QRails Intermediary Inc., XTM QRails USA Inc., a wholly-owned subsidiary of the company, QRails Inc. and Nancy Lester (Stockholder Representative), dated June 15, 2023. On the close of the deal, QRails and XTM QRails USA Inc. merged with QRails surviving that merger on the terms with the resulting issuer becoming a subsidiary of the company.
Upon the deal’s close, XTM has 200,198,087 common shares issued and outstanding. The transaction shares represent approximately 14.16% of the XTM’s issued and outstanding shares upon closing the deal. No new control person was created due to the merger, and the transaction is not considered a fundamental change or change of business as defined by the Canadian Securities Exchange (CSE) policies.
In addition, the company announced a recruitment and retention-based employee equity plan for QRails, XTM employees and executives instrumental to the success of the transaction of an additional 12,000,000 restricted share units (RSUs) and 20,000,000 options to purchase common shares to its pool.
XTM’s Cary Strange Appointed President of QRails
Upon closing, Cary Strange, XTM’s Chief Revenue Officer, has been appointed President of QRails. Cary is an early investor in QRails and its former Chief Revenue Officer. QRails will run as a wholly owned subsidiary of XTM, with staff and operational integrations phased in over time as revenue potential achieves momentum. With a deep and experienced background in payments and first-hand knowledge of QRails’ clients, Cary has been assisting XTM with its evaluation and integration planning to be able to quickly scale QRails and XTM into the U.S. and international markets.
Shares of XTM closed today’s trading session at $0.17 per share, up +3.03% on the day. YTD, PAID stock is up +54.55%.
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Read More:
XTM Posts Year-End 2022 Earnings, Revenue Climbs 111%
XTM Signs Definitive Agreement to Acquire World-Class Earned Wage Access Company QRails
This 15 Cent Earned Wage Access Company is Eating the Lunch of its Much Larger Fintech Competitors
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