XTM Announces Receipt of MCTO

XTM Inc. ("XTM" or the "Corporation") (QB: XTMIF / CSE: PAID / FSE: 7XT) announced today that further to its application to the Ontario Securities Commission (the "OSC") for a management cease trade order ("MCTO") to be imposed in respect of its delay in filing its audited annual financial statements, management's discussion and analysis, annual information form, and related certifications, all for the year ended December 31, 2023 (collectively, the "Annual Filings"), the OSC has granted the MCTO. The MCTO restricts trading in securities of the Corporation by management of the Corporation until such time as the Issuer Statements have been filed by the Corporation and the MCTO is no longer in effect.

The MCTO does not affect the ability of shareholders who are not insiders of the Company to trade their securities of the Company.

In connection with the Corporation's expectation that it may be unable to file the Issuer Statements on time, the Corporation applied for an MCTO under National Policy 12-203 – Management Cease Trade Orders ("NP 12-203") as disclosed in the Corporation's news release dated April 22, 2024.

As previously announced, the Corporation applied for the MCTO due to a delay related to audit procedures and quality review to support reliance on third party service organizations XTM, and has now determined that it will not be able to the file Issuer Statements on time.

On April 30, 2024, the OSC, as the Corporation's principal regulator, granted the Corporation's application for the MCTO.

The Corporation's finance and accounting teams are working diligently with its auditors and the Corporation expects to have the audit of the Issuer Statements completed no later than May 31, 2024. The Corporation will issue a news release once the Issuer Statements have been filed. Until the Corporation files the Issuer Statements, it will comply with the alternative information guidelines set out in NP 12-203 by issuing bi-weekly default status reports, in the form of news releases, for so long as the Issuer Statements have not been filed.

About XTM

XTM, with offices in Miami, Toronto, Denver and London, is a Fintech creator of payment innovations including fully certified Earned Wage Access through its AnyDay product. Founded in the cloud-banking space to further support businesses to inspire their workforce in the hospitality, personal care and services staffing industries, XTM provides on-demand pay for many large brands including Earls, Maple Leaf Sports & Entertainment, Cactus Club, Marriott Hotels and Live Nation. QRails is a fully owned subsidiary of XTM. A cloud-based, API-driven issuer-processor, QRails enables payroll providers, financial institutions and other global fintech companies to keep up with the on-demand economy by delivering innovative digital payment solutions to their employees. QRails helps companies modernize and leverage payroll as a differentiator in attracting and retaining talent all at low to no cost for the employee and employer. QRails’ flagship solution, AnyDay, is the first provider to own their full tech stack that powers their Earned Wage Access solution. Founded in 2016, QRails, Inc., together with its U.K. subsidiary, QRails Limited is SAP-certified, QRails also has earned several industry certifications under PCI DSS, and SOC. For more information, please visit www.QRails.com.