XTM Announces Delay in Its Annual Filings

TORONTO--(BUSINESS WIRE)-- XTM Inc. (“XTM” or the “Corporation”) (QB: XTMIF / CSE:PAID / FSE:7XT) announced today that due to a delay related to audit procedures and quality review to support reliance on third party service organizations XTM may not be in a position to file its audited annual financial statements (the “Issuer Statements”), management’s discussion and analysis and related certifications for the financial year ended December 31, 2023 on or before May 1, 2024, as required.

The delay in the Annual Filings is outside of XTM’s control and due solely to the quality review to support reliance on third party service organizations. The Company confirms that there have been no material business developments or other material information relating to its affairs as of the date of this news release that have not been generally disclosed, and is not subject to any insolvency proceedings.

Accordingly, the Corporation has requested the issuance of a management cease trade order under the provisions of National Policy 12-203 Management Cease Trade Orders (“NP 12-203”) so as to permit the continued trading in the Corporation’s common shares by persons other than insiders and employees of the Corporation. The Corporation’s finance and accounting teams are working diligently with its auditors, and the Corporation expects to have the audit of the Issuer Statements completed, and the Issuer Statements filed, no later than May 31, 2024.

The Corporation confirms that it intends to satisfy the provisions of NP 12-203 and issue bi‑weekly default status reports for so long as the Corporation remains in default of the financial statement filing requirement, containing any material changes to the information in this release, all actions taken by the Corporation to remedy the default; particulars of any failure by the Corporation to fulfill these provisions, any subsequent defaults of the Corporation requiring a default announcement and any other material information concerning the affairs of the Corporation not previously disclosed. The Corporation is not subject to any insolvency proceedings nor is there in other material information concerning the affairs of the Corporation that has not been generally disclosed.

About XTM

XTM with offices in Miami, Toronto, Denver and London is a Fintech creator of payment innovations including fully certified Earned Wage Access through its AnyDay™ product. Founded in the cloud-banking space to further support businesses to inspire their workforce in the hospitality, personal care and services staffing industries, XTM provides on-demand pay for many large brands including Earls, Maple Leaf Sports & Entertainment, Cactus Club, Marriott Hotels and Live Nation. QRails is a fully owned subsidiary of XTM. A cloud-based, API-driven issuer-processor, QRails enables payroll providers, financial institutions and other global fintech companies to keep up with the on-demand economy by delivering innovative digital payment solutions to their employees. QRails helps companies modernize and leverage payroll as a differentiator in attracting and retaining talent all at low to no cost for the employee and employer. QRails’ flagship solution, AnyDay™, is the first provider to own their full tech stack that powers their Earned Wage Access solution. Founded in 2016, QRails, Inc., together with its U.K. subsidiary, QRails Limited is SAP-certified, QRails also has earned several industry certifications under PCI DSS, and SOC. For more information, please visit www.QRails.com.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240422563281/en/

Marilyn Schaffer

E: finance@xtminc.com

T: 416.260.1641

Source: XTM Inc.