MIAMI & TORONTO - XTM, Inc. (QB: XTMIF / CSE:PAID / FSE:7XT), a fintech company specializing in payment solutions, has announced the receipt of $1.15 million in funding from a strategic investor. The company, which operates in Miami, Toronto, Denver, and London, also disclosed the signing of a $3 million licensing agreement with a U.S. entity for its Earned Wage Access (EWA) product, AnyDay™.
The funds raised from the strategic investor, along with additional Subscription Agreements from existing shareholders and others, are part of a non-brokered private placement offering aimed at raising up to $5 million. XTM expects to close this round of funding by January 31, 2024.
The licensing agreement will enable XTM to provide processing services for a U.S. Banking as a Service provider, marking a significant step in the company's growth strategy. With the proceeds from the debenture financing and the licensing agreement, XTM will fulfill the covenants necessary to access the EWA lending facility.
XTM aims to position itself among the top three global EWA providers, leveraging the operational funding to expand its contracted EWA business through Distributor Agreements. The company is actively engaging with the Human Capital Management (HCM) and Payroll sectors 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. The company has a history of creating payment innovations and has integrated its EWA solutions with prominent brands. XTM continues to enhance its digital offerings to support businesses in various service industries by providing on-demand pay and other workforce management tools.
InvestingPro Insights
XTM, Inc.'s recent strategic funding and licensing agreements highlight its growth trajectory in the fintech space. To provide a deeper financial perspective, InvestingPro data shows significant metrics that could influence investor decisions. The company's market capitalization stands at a modest 15.49 million USD, reflecting its position in the competitive fintech market. Despite challenges, the company has achieved a robust revenue growth of 42.63% over the last twelve months as of Q1 2023, signaling potential in its business model and market acceptance of its products.
InvestingPro Tips indicate that XTM is expected to continue this trend, with analysts anticipating sales growth in the current year. However, the company faces hurdles, such as weak gross profit margins of 9.24%, which could impact future profitability. It's also worth noting that XTM's stock has experienced high price volatility, which could be of interest to investors looking for short-term opportunities. For those considering a deeper dive into XTM's financial health and prospects, InvestingPro offers additional tips, including predictions around profitability and cash flow concerns.
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