Hank Payments Corp. announced that it has signed a binding Memorandum of Understanding ("MOU") to enter into an exclusive negotiating period, to close a national license agreement for the use of the Hank technology platform in Canada, allowing the Company to enter a new country alongside a strong partner. Highlights: 1. An initial term of five years, underpinned by minimum monthly licensing fees approaching material user counts over time and is commensurate with meaningful penetration of the Canadian market; 2. Additional licensing fees to be paid monthly as user counts exceed minimums; 3. Potential to lengthen the exclusivity beyond five years given subscribed consumers are expected to continue to use the platform beyond the initial term; 4. A customization and integration period to allow the parties to integrate with existing and new channels/suppliers/platforms that the licensee will deliver, including banking and regulatory compliant platforms; 5. Licensee has provided a deposit of $150,000 and will invest $250,000 into the next available financing offered by Hank at then current pricing; 6. Up to $500,000 in R&D work to be provided by the Company for customization.

Market rates for customization over and above hours consumed by the initial R&D credit amount; 7. Hank will provide platform hosting, segmented in Canada, dedicated to the licensee with customary support and related service levels; 8. Expected definitive signing of licensing agreement, no later than January 30, 2023.