Banxa Closes on $3.5 Million Funding from Lind Partners

October 25, 2022 at 08:45 AM EDT

TORONTO, ON / ACCESSWIRE / October 25, 2022 / Banxa Holdings Inc. (TSXV:BNXA)(OTCQX:BNXAF)(FSE:AC00) ("Banxa" or the "Company"), the leading Web3 payments and on/off ramp solutions provider, is pleased to announce that it has closed on the funding of CAD$3,500,000 pursuant to its previously announced convertible security funding agreement (the "Funding Agreement") with Lind Global Fund II, LP, an entity managed by The Lind Partners, LLC, a New York-based institutional fund manager (together, "Lind"). All amounts are in Canadian dollars unless otherwise indicated.

Under the Funding Agreement, (i) Lind advanced to Banxa CAD$3,500,000, less a closing fee of CAD$105,000, in consideration for the issuance of an uncertificated convertible security in the principal amount of CAD$3,500,000 and having an aggregate face value of CAD$4,200,000, and (ii) the Company issued to Lind 2,673,228 common share purchase warrants exercisable for 24 months from the date of issue at an exercise price of CAD$1.27 per share.

Holger Arians, Chief Executive Officer of Banxa, commented, "We highly appreciate the confidence demonstrated by Lind since 2020 and we are excited about the opportunity this growth capital affords Banxa. Upon closing, Banxa will have over AUD$12 million in cash and equivalents giving us well over 12 months of operational cash runway based on our current transaction volumes. We also have a clear line to profitability in the current financial year and we are confident of weathering the current crypto winter like we have done over the past 8 years."

Further details concerning this funding can be found in a news release of the Company dated October 17, 2022.

The Funding Agreement and the issuance of securities thereunder were conditionally approved by the Exchange on October 19, 2022. The transactions described herein are subject to final approval of the Exchange.

About BANXA Holdings Inc.

Banxa's mission is to accelerate the world to Web3 with its leading global on-and-off ramp solution. Through its extensive network of local payment solutions paired with the required crypto licenses, Banxa gives its partners and projects access to global audiences with less friction and higher conversions. Banxa has a global team of Web3 natives - with operating headquarters in the USA, Europe and APAC regions. For further information go to www.banxa.com.

About The Lind Partners

The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind's funds make direct investments ranging from US$1 to US$30 million, invest in syndicated equity offerings and selectively buy on market. Having completed more than 100 direct investments totalling over US$1 Billion in transaction value, Lind's funds have been flexible and supportive capital partners to investee companies since 2011.

For more information, please visit http://www.thelindpartners.com.

CONTACTS

Investors:
MZ North America
Brian M. Prenoveau, CFA
BNXA@mzgroup.us
561-489-5315

Media:
Wachsman
Ethan Lyle
banxa@wachsman.com

ENDS

ON BEHALF OF THE BOARD OF DIRECTORS

Per: "DOMENIC CAROSA" https://twitter.com/dcarosa

Domenic Carosa = Chairman (1-888-218-6863)

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Forward-looking Information and Statements

This news release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends", "expects" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or will "potentially" or "likely" occur. This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding the ability of the Company to obtain final approval of the Exchange.

These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, risks related to the Company being able to obtain approval from the Exchange of the Convertible Security and risks related to changes in general economic, business and political conditions, including changes in the financial markets, changes in applicable laws, and compliance with extensive government regulation, as well as those risk factors discussed or referred to in the Company's disclosure documents filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.

In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, assumptions regarding the Company obtaining final approval of the Exchange of the Convertible Security in a timely manner, and the ability of the Company to effectively pursue its growth strategy.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.

SOURCE: Banxa Holdings

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Banxa Closes on $3.5 Million Funding from Lind Partners

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