XTM Obtains Creditor Protection to Stabilize the Business and Pursue Restructuring Options and Reports on Bank of Canada Order that provides path for Everyday Payments Platform to Resume Operations

Executive Summary

• XTM Inc. and its subsidiary Everyday People Payments Inc. were granted an Initial Order under the Companies' Creditors Arrangement Act (CCAA) to place the entities in creditor protection, stay proceedings, and enable debtor‑in‑possession financing.
• A DIP loan will be provided by Pateno Payments Inc. to fund working capital, professional fees, and expenses during the CCAA process; a monitor (The Fuller Landau Group Inc.) has been appointed.
• The company disclosed an accumulated trust deficit of approximately $18.75 million as of September 30 2025 and announced that trading of its common shares remains halted on the Canadian Securities Exchange.

Key Details

• Initial Order Provisions:
• Stay of proceedings for XTM Entities.
• Approval of debtor‑in‑possession (DIP) financing.
• Appointment of The Fuller Landau Group Inc. as monitor with enhanced powers over merchant fund trust accounts at Digital Commerce Bank.

• Relief from certain securities reporting and exchange obligations.

• Financial Condition:

• Accumulated trust deficit (“Shortfall”) of ≈ $18.75 M disclosed in interim financial statements for the period ended September 30 2025.

• DIP Financing Arrangement:

• Term sheet executed with Pateno Payments Inc. (the “DIP Lender”).
• DIP lender to advance a loan during the stay of proceedings; exact amount and terms not disclosed.

• Proceeds earmarked for working capital, professional fees, and expenses related to CCAA proceedings.

• Operational Impact:

• Daily operations of the Everyday Payments platform were ceased on February 17 2026 per a temporary Bank of Canada order.

• A revised Bank of Canada temporary order (issued Feb 27 2026) permits limited activities necessary for the re‑branded EveryDay Payments platform, subject to court‑approved controls.

• Share Trading:

• Trading of XTM’s common shares remains halted on the Canadian Securities Exchange (CSE).

• Monitor Communications:

• The monitor will maintain a website posting updates, reports to the Court, and related orders/information.

Notable Quotes

(No direct quotes were provided in the release.)