Lynx Global Signs Definitive Agreement to Acquire a Controlling Interest in DA5
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Lynx Global Signs Definitive Agreement to Acquire
a Controlling Interest in DA5
Vancouver, British Columbia--(Newsfile Corp. – April 19, 2021) - Lynx Global Digital Finance
Corporation (CSE:LYNX) (“LYNX” or the “Company”), formerly CannaOne Technologies Inc.
(CSE: CNNA) (OTC Pink: CNONF) (FSE: 3CT) , is pleased to announce that it has signed a
definitive share purchase agreement (the “Agreement”) in connection with its previou sly
disclosed (see March 16, 2021 news release) acquisition (the “Acquisition”) of a 51% equity
interest of Philippines-based Direct Agent 5 Inc. (“DA5”).
DA5 serves as a remittance and forex licensed entity with Bangko Sentro Pilipinas (the “BSP”)
and processed over USD $500 million worth of remittance and forex transactional volume over
more than 1.4 million transactions in 2020.
“We are very pleased to have been able to complete this definitive agreement with DA5 within a
few weeks of signing the MOU,” stated Mike Penner, CEO of LYNX. “With over 15 years of
operations as a recognized and trusted remittance and forex brand, we are excited to work with
Ray Babst, the founder and CEO, on expanding the DA5 brand internationally as the backbone
of the Lynx Digital payment platform.”
TRANSACTION DETAILS
The Acquisition is expected to close on or before May 1, 2021, or such other date as may be
mutually agreed to by the parties (the “Closing Date”). Pursuant to the Agreement, on the Closing
Date, the Company will acquire a 51% equity interest in the issued and outstanding common
shares of DA5 in exchange for 11,823,800 common shares of the Company (the “Consideration
Shares”) and 2,000,000 share purchase warrants (the “Consideration Warrants”) entitling the
holders to acquire an additional 2,000,000 common shares of the Company (“Shares”) at a price
per Share equal to the closing price of the Shares on the last trading day prior to the Closing Date.
The Consideration Shares and any Shares issued upon exercise of the Consideration Warrants
are subject to regulatory and voluntary pooling restrictions on resale in the following aggregate
amounts until the following dates: (a) 70% of the Consideration Shares and any Shares issued
upon exercise of the Consideration Warrants, shall be subject to restrictions on resale until the
date which is four months plus one day from the Closing Date; (b) an additional 10% of the
Consideration Shares and an additional 10% of any Shares issued upon exercise of the
Consideration Warrants, shall be subject to restrictions on resale until the date which is one -
hundred fifty (150) days from the Closing Date; (c) an additional 10% of the Consideration Shares
and an additional 10% of any Shares issued upon exercise of the Consideration Warrants, shall
be subject to restrictions on resale until the date which is one-hundred eighty (180) days from the
Closing Date; and (d) an additional 10% of the Consideration Shares and an additional 10% of
any Shares issued upon exercise of the Consideration Warrants, shall be subject to restrictions
on resale until the date which is two-hundred ten (210) days from the Closing Date. 100% of the
Consideration Shares and any Shares issued upon exercise of the Consideration Warrants will
also be subject to a statutory hold period of four months and one day.
At the Closing Date, in connection with the Acquisition, the Company will issue the number of
Shares, as is equal to 7.5% of the Consideration Shares (the “Finder’s Fee”). All Shares issued
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as part of the Finder’s Fee shall be subject to the same resale restrictions as the Consideration
Shares as set out above.
The Acquisition will not constitute a fundamental change for the Company and will not result in a
change of control of the Company (within the meaning of applicable securities laws and the
policies of the Canadian Securities Exchange).
ABOUT LYNX GLOBAL DIGITAL FINANCE:
Since inception, LYNX (formerly CannaOne Technologies Inc.) has focused on development and
deployment of its proprietary online marketplace platform. Integral to the true intent and directive
of the long-term planning of these development efforts was an early-stage technology agreement
to allow for integration of a payment and financial technology platform to facilitate merchant sales
within its online platform. As such, since March 2017 the company has worked closely with
payment technology providers in South East Asia, to ascertain the pathways to the greatest
potential for future growth in the world's fastest growing digital payment markets. With the
existence of ever-evolving international relationships with parties specifically focused on the
facilitation of payment processing and bank acquiring infrastructure, the Company sees potential
to increase revenue over time with the continued integration and utilization of complete payment
processing capabilities within our online marketplace solutions. The Company will look to expand
its online client portfolio to include additional business sectors , such as those to service the
payment processing requirements of e-commerce providers most effectively.
LYNX seeks to become a global leader in financial technology, solutions, and services for
merchants as it works hand in hand with select niche banking partners. LYNX intends to integrate
PCI certified payment solutions with its proprietary and proven online marketplace technology
platform to offer a truly comprehensive suite of products and services to serve B -to-B merchant
clientele. The Company has targeted banking relationships outside of North America, (specifically
in SE Asia), and by working with selected banking or licensed EMI partners, our solutions may
include merchant acquiring solutions; integrated payment solutions; global eCommerce solutions;
core processing and ancillary applications solutions; digital and online marketplace solutions,
including internet, mobile and eBanking; fraud, risk management and compliance solutions;
electronic funds transfer and network services solutions; and/or card and online retail payment
solutions. The Company is focused on organic growth while investigating potential strategic
acquisitions, that may contribute critical technology applications, services and immediate revenue
streams that can complement or enhan ce our existing offerings and potentially increase or
expedite our path to future profitability. While LYNX believes that significant near -term
opportunities exist for the Company's solutions, there can be no assurance that customer
agreements will be reac hed or that such agreements will be profitable should they be
implemented.
For more information, please contact:
Michael Penner, CEO
(604) 396-9974
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES
PROVIDERS HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
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FORWARD-LOOKING STATEMENTS: Certain information contained herein may constitute
“forward-looking information” under Canadian securities legislation, including with respect to the
completion of the Acquisition, the planned operations of the Company and any synergies created
through the acquisition of a 51% interest in DA5, DA5 providing the Company with the “transaction
engine” that will drive the expansion of a global financial ecosystem, LYNX becoming a global
leader in in financial technology, solutions and services for merchants and the ability of the
Company to grow organically or through strategic aquisitions . Generally, forward-looking
information can be identified by the use of forward -looking terminology such as, “will be”, or
variations of such words and phrases or statements that certain actions, events, or results “will”
occur. Forward-looking statements are based on the Company's estimates and are subject to
known and unknown risks, uncertainties and other factors that may cause the actual results, level
of activity, performance, or achievements of LYNX and DA5 to be materially different from those
expressed or implied by such forward -looking statements or forward -looking information,
including capital expenditures, other costs, or implied future forecasts. There can be no assurance
that the acquisition of an interest in DA5 will be completed on the terms described herein, or at
all. The Company further again cautions that all forward -looking statements are inherently
uncertain, and that actual performance may be affected by a number of material factors, many of
which are beyond the Company's control. Such factors include, among other things: risks and
uncertainties relating to the Company's limited operating history and the need to comply with
governmental regulations. There can be no assurance that such statement s 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 information. LYNX will not update any forward-looking statements or forward -looking
information that are incorporated by reference herein, except as required by applicable securities
laws.