Datametrex closes acquisition of Yuzu payment processor

Executive Summary

• Datametrex AI Ltd. has completed the acquisition of the Yuzu payment processing solution, including related patents and intellectual property, from Firstpayment Inc. via its wholly owned subsidiary, Paymetrex Payment Solutions Inc.
• The transaction was valued at $5.5 million, satisfied entirely through the issuance of 55 million common shares at a deemed price of $0.10 per share.
• Michael Kron, who received shares as part of the transaction, has been appointed to the Board of Directors and as Vice-President of Paymetrex, increasing his ownership stake to approximately 12.15% of the company.

Key Details

• Acquisition Target: Yuzu payment processing solution, including related patents and intellectual property.
• Seller: Firstpayment Inc., a Canadian-based financial technology company.
• Acquirer: Datametrex AI Ltd. via wholly owned subsidiary, Paymetrex Payment Solutions Inc.
• Purchase Price: $5.5 million.
• Consideration Structure: Issuance of 55,000,000 common shares in Datametrex.
• Share Price: Deemed issue price of $0.10 per share.
• Share Restrictions: The consideration shares are subject to a hold period of four months and one day.
• Use of Proceeds: Funds from a previously announced private placement of subscription receipts (released from escrow) will be used to integrate the Yuzu solution into Datametrex's technology division and pursue merchant opportunities.
• Debt Assumption: Datametrex has not assumed any debt of Firstpayment.
• Control Change: The acquisition does not constitute a fundamental change, result in a change of business, or result in a change of control of Datametrex.
• New Director Appointment: Michael Kron appointed to the Board of Directors and as Vice-President of Paymetrex.
• Michael Kron Ownership:
  • Pre-transaction holding: 55,194 shares (0.07% of 81,336,006 outstanding shares).
  • Post-transaction holding: 18,531,997 shares (approx. 12.15% of issued and outstanding common shares).
  • Kron is required to file an early warning report under National Instrument 62-103.

Notable Quotes

• "The closing of the Yuzu payment solution acquisition represents a significant milestone in Datametrex's growth strategy and our expansion into next-generation payment technologies," said Paul Haber, chief executive officer of Datametrex. "Yuzu's patented payment infrastructure and cryptocurrency capabilities complement our existing technology portfolio and position Paymetrex to capitalize on the growing demand for secure, efficient and innovative digital payment solutions. We are excited to integrate this platform into our operations and to begin pursuing merchant relationships that will drive meaningful revenue growth for the company."