Edmonton, Alberta--(Newsfile Corp. - January 2, 2025) - Everyday People Financial Corp. (TSXV: EPF) (OTCQB: EPFCF) ("Everyday People" or the "Company"), a financial service provider, is pleased to announce that the Company under its Everyday People Financial Services ("EP Financial") business pillar has completed the Company's bespoke prepaid card programs and has entered into an eight year contract renewal agreement (the "Agreement") with Digital Commerce Bank ("DC Bank") and Digital Commerce Payments Inc. ("DC Payments", together with DC Bank the "DC Parties").
"The renewal of our Agreement with the DC Bank marks a significant step forward for our EP Financial business pillar which supports the completion of our two main bespoke prepaid card platform offerings, one of which is our Everyday HSA, a health care spending account, and the other our Everyday Wallet, a procurement card providing B2B and government services, which are now positioned to rollout in 2025 streamlining purchasing and benefit distribution for better spending control. By securing more favorable terms and strengthening our partnership, we are well-positioned to enhance our financial services we provide to our clients while improving operational efficiencies. This milestone reflects our commitment to delivering long-term value to our shareholders and partners," said Barret Reykdal, Co-CEO Financial Services of the Company.
The Company also currently offers two other product offerings outside of the DC Bank bespoke prepaid card platform are: 1) the Everyday People Borrowed Down Payment Program ("EP BDPP") provides qualified homebuyers the chance to achieve homeownership immediately and responsibly, even with no down payment. Potential homebuyers can borrow up to 5% of their new home's equity to use as a down payment from the Company. The Company receives incentives from home builders and remains balance sheet neutral for the Company; and 2) the Everyday People Supply Chain ("EP Supply Chain") assists companies in accessing capital and facilitating the movement of essential goods. The Company aligns funding partners for operating partners to source and purchase product. In exchange for providing the access to capital, the Company earns a majority share of the profits, with partners handling local logistics and sales. This process requires careful management of cash flow and secure transactions. EP Supply Chain addresses these complexities by developing innovative solutions to ensure secure, efficient, and compliant fund transfers and product delivery.
"We are very excited to rollout all of these new programs in 2025 adding to the growth strategy for the EP Financial Services pillar," said Barret Reykdal, Co-CEO Financial Services of the Company. "With no additional capital required to scale these consumer products businesses, and an overall margin contribution between 75% - 90%, this business is poised to scale."
About Digital Commerce Bank
DC Bank is a technology-driven chartered Canadian bank focused on fully customizable Banking-as-a-Service solutions for corporations. DC Bank is a Canadian leader in digital payment solutions for corporate online banking, empowering financial institutions and FinTech entrepreneurs to effortlessly scale their business.
Agreement Details
Effective September 30, 2024, and approved by the Company's Board of Directors on November 14, 2024, the Company terminated the previous Processing Agreement and BIN Sponsorship Agreement, originally dated January 31, 2021 (collectively the "Former Agreements") and entered into two renewed agreements with the DC Parties. Pursuant to the New Program Agreements, the Company entered into a Card Program Services Agreement and a Transaction Processing Agreement. Under the terms of the New Program Agreements, the Company will utilize different technology services of DC Bank, which allows for a reduction in monthly fees payable to DC Bank, and the Company will issue 1,000,000 commons shares in the capital of the Company to DC Bank to settle the outstanding debt of $553,281.61. The renewed Agreement is for an 8-year term and matures on September 30, 2032.
Pursuant to the Card Program Services Agreement, DC Bank will provide services related to the issuance of prepaid cards to the Company's clients. The Card Program Services Agreement grants the Company a non-exclusive and revocable license to use DC Bank's property for the purpose of operating its card program(s). The Card Program Services Agreement does not transfer ownership of the intellectual property to the Company.
Pursuant to the Transaction Processing Agreement, DC Bank agreed to provide transaction processing services to the Company. The Transaction Processing Agreement grants the Company a non-exclusive and revocable license to access and use DC Bank's processor software and documentation solely for the purpose of utilizing the processing services. DC Bank owns all intellectual property, and the Transaction Processing Agreement grants the Company a limited license to use the intellectual property. The Transaction Processing Agreement does not transfer ownership of the intellectual property to the Company.
The New Program Agreements represent a continuation of the Company's efforts to optimize financial and operational terms with its partners, supporting its growth strategy in the financial services sector.
Issuance of Common Shares
In connection with the New Program Agreements and the settlement of the outstanding accounts receivable owed to DC Bank, as stated above, the Company will issue to DC Payments 1,000,000 common shares in the capital of the Company, of which issuance is subject to final TSX Venture Exchange ("TSXV") approval. The common shares issued are subject to a statutory four-month hold-period, which will expire on a date that is four months and one day from the date the Company issues the common shares to DC Payments. Following the issuance of the common shares to DC Payments, the Company will have 119,654,361 issued and outstanding common shares.
About Everyday People Financial Corp.
Everyday People is founded on the belief that everyone deserves a second chance to financially reestablish themselves with access to affordable credit products. We are changing the way people manage money by enhancing our client services with our own affordable and specialized financial products and literacy programs. We're helping everyday people rebuild their financial health for generational wealth. Operating in the United Kingdom, Canada, and the United States of America, we have a workforce of about 500 people and our operations were first established in 1988,The company includes two main pillars of business: one pillar, EP Revenue Cycle Management operates under our Co-CEO RCM, Graham Rankin, and one pillar, EP Financial Services operates under our Co-CEO Financial Services, Barret Reykdal. We stand for creativity and entrepreneurship. Our combination of companies, products and services has been established to ensure we can fulfill consumers' financial needs and service them in a low-cost and effective manner.
Contact Gordon Reykdal Executive Chairman of Everyday People Financial Corp. letsconnect@epfinancial.ca 1 888 825 9808 (Press Option 2 for Investor and Media Relations)
Disclaimer
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of the United States of America, its territories (the "United States"), and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, any U.S. person (as defined in Regulation S under the U.S. Securities Act) unless exemptions from the registration requirements of the U.S. Securities Act and any applicable state securities laws are available.
This news release includes certain "forward-looking statements" or "forward-looking information" (collectively referred to hereafter as "forward-looking statements") under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to financial performance, results of operations, integration of the acquired businesses, and the business, plans, strategy and operations of the Company. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the 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, expectations and assumptions concerning the Company and the acquired businesses as well as other risks and uncertainties, including those described in the documents filed by the Company on SEDAR+ at www.sedarplus.ca. There can be no assurance that such statements 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. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities.
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