XTM Obtains Creditor Protection to Stabilize the Business and Pursue Restructuring Options and Reports on Bank of Canada Order that provides path for Everyday Payments Platform to Resume Operations

Canada NewsWire

TORONTO, March 2, 2026 /CNW/ - XTM Inc. (OTCQB: XTMIF) (CSE: PAID) (the "Company") announced today that the Company and its subsidiary, Everyday People Payments Inc. (together, "The XTM Entities") have been granted an order (the "Initial Order") from the Ontario Superior Court of Justice (Commercial List) (the "Court") under the Companies' Creditors Arrangement Act (the "CCAA") in order to assist in stabilizing the business and allow it to pursue restructuring options.

After consideration of all available alternatives, following consultation with legal and financial advisors, the directors of the Company determined that it is in the best interests of the The XTM Entities and its stakeholders to seek creditor protection under the CCAA given, among other things, that the Company has been operating in a financially strained position since inception. While the Company attempted to reach profitability, it depleted its resources and used restricted cash for operating expenses which resulted in an accumulated trust deficit of approximately $18.75 million as at September 30, 2025 (the "Shortfall") as disclosed in the Company's most recent interim financial statements for the period ended September 30, 2025.

The Initial Order provides for, among other things: (i) a stay of proceedings in favour of the The XTM Entities; (ii) approval of the debtor-in-possession financing (the "DIP Financing"); (iii) the appointment of The Fuller Landau Group Inc., as monitor of The XTM Entities (in such capacity, the "Monitor"); and (iv) enhanced powers for the Monitor, including without limitation, to oversee the merchant fund trust accounts held in the Company's name at Digital Commerce Bank. In addition, the Initial Order provides the Company with relief from certain reporting obligations under securities legislation and stock exchange rules.

In order to fund the Company's working capital needs, professional fees and expenses during the CCAA proceedings, the Company has executed a term sheet with Pateno Payments Inc. (the "DIP Lender"), pursuant to which the DIP Lender has agreed to advance a debtor-in-possession loan during the stay of proceedings. The stay of proceedings and the DIP Financing is intended to provide the Company with the time to stabilize the business, put safeguards in place with respect to merchant and end use funds and to consider restructuring options including potentially going back to Court to seek to undertake a sale or investment solicitation process with a view to maximizing value for stakeholders including merchants that suffered a loss as a result of the Shortfall.  

The Monitor has set up a website where updates on the restructuring process, the Monitor's reports to the Court, Court orders and other information will be posted.

As disclosed on February 19, 2026, the Company ceased the operations of its Everyday Payments platform and all retail payment activities on February 17, 2026 in accordance with a temporary order issued by the Bank of Canada. On February 27, 2026, following the granting of the Initial Order, the Bank of Canada issued a revised temporary order to the Company that, among other things, revoked and replaced its previous order and permits certain activities of the Company to the extent necessary to enable the operations of the AnyDay Payments platform that has been rebranded EveryDay Payments platform by other parties provided that, among other things, the Company ensures that the platform operates in accordance with the proposed processes, controls and authorizations described in the Initial Order from the Court.  

The trading in the Company's common shares will continue to remain halted on the CSE.

About XTM Inc.

XTM Inc. is a Toronto-based fintech enabler and the founder of AnyDay®, a real-time payroll, tip, and earned wage access platform. (www.paidanyday.com). The XTM Entities are subject to the terms of the Order and readers are encouraged to read the Initial Order issued by the Court and the Temporary Order issued by the Bank of Canada in their entirety.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this news release are forward-looking statements, including with respect to future plans of the Company. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Some of the specific forward-looking information in this news release includes, but is not limited to, statements with respect to the Company's belief that the stay of proceedings and DIP Financing will provide the XTM Group with the time and stability required to consider potential restructuring transactions; the trading and delisting of the Company's common shares. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive creditor or regulatory approvals; the ability to complete any future potential transactions in connection with a sale and investment solicitation process in CCAA proceedings and the terms and conditions thereof; the availability of DIP Financing; the application of federal, provincial and municipal laws; the impact of increasing competition; and those additional risks set out in the Company's public documents filed on SEDAR+. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The CSE has neither approved nor disapproved the contents of this press release and the CSE does not accept responsibility for the adequacy or accuracy of this release.

SOURCE XTM Inc.

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