XTM secures $1.15 million investment and $3 million EWA contract

MIAMI & TORONTO – XTM, Inc. (QB: XTMIF / CSE:PAID / FSE:7XT), a fintech company specializing in payment solutions, announced that it has received $1.15 million in funding from strategic investors. . The company, which has operations in Miami, Toronto, Denver and London, also announced that it has signed a $3 million license agreement with a US entity for its Earned Wage Access (EWA) product, AnyDay™.

The funds raised from strategic investors, along with additional underwriting commitments from existing shareholders and others, will form part of a non-brokered private placement offering to raise up to $5 million. XTM expects to close this funding round by January 31, 2024.

The license agreement enables XTM to provide processing services to Banking as a Service providers in the United States and is a significant step in the company’s growth strategy. With the proceeds from the bond financing and license agreement, XTM will fulfill the necessary covenants to access his EWA financing facility.

XTM aims to position itself among the world’s top three EWA providers by leveraging operating capital to expand its EWA business contracted through distributor agreements. The company actively works with human capital management (HCM) and payroll departments to offer AnyDay as a licensed managed hosted solution or as a standalone product without managed services.

This announcement is based on a press release statement from XTM, Inc. XTM, Inc. has a history of creating payments innovation and integrating EWA solutions with notable brands. XTM continues to enhance its digital offerings to support businesses across a variety of service industries by providing on-demand payroll and other workforce management tools.

Investment Pro Insights

XTM, Inc.’s recent strategic financing and licensing agreements highlight the company’s growth trajectory in the fintech space. To provide a deeper financial perspective, InvestingPro’s data shows important metrics that can influence investor decisions. The company’s market capitalization is modest at $15.49 million, reflecting its position in the competitive fintech market. Despite the challenges, the company has achieved solid revenue growth of 42.63% over the past 12 months as of Q1 2023, demonstrating the potential for market acceptance of its business model and products. I am.

According to InvestingPro Tips, XTM is expected to continue this trend, with analysts expecting revenue growth this fiscal year. However, the company faces hurdles such as a low gross profit margin of 9.24%, which could impact future profitability. It’s also worth noting that XTM’s stock price is highly volatile, which may be of interest to investors looking for short-term opportunities. For those looking to learn more about XTM’s financial health and prospects, InvestingPro offers additional tips, including projections for profitability and cash flow concerns.

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