VANCOUVER, British Columbia, May 30, 2017 /PRNewswire/ --
Glance Technologies Inc. (CSE:GET.CN), (OTCQB:GLNNF) (CSE:GET.WT), (FKT:GJT) is pleased to announce that it is has agreed to license its mobile payment technology to Cannapay Financial Inc. for $1,000,000, marking Glance's entry into the legal marijuana market.
"As Canada progresses towards legalization of marijuana, a multi-billion dollar industry in need of financial services is emerging," says Desmond Griffin, CEO of Glance. "Cannapay Financial's technology licence from Glance will allow it to bring marijuana industry payments into the digital age by providing a wide variety of Fintech solutions to all levels of the marijuana business, from suppliers to customers. This is inline with our strategy to monetize our robust and constantly advancing technology platform through strategic alliances to address markets that are not on our near term operational roadmap. This deal allows our shareholders to benefit from both significant ongoing revenue as well as equity upside in this exciting space."
Pursuant to the licence agreement, Glance will grant to Cannapay a non-exclusive, worldwide licence to white label Glance's mobile payment processing platform and its proven anti-fraud technology, for legal business to business and business to consumer mobile payments in the marijuana industry. The licence will have an initial term of 10 years and will be renewable for two additional 10 year periods. As consideration for the licence, Cannapay will pay to Glance an initial fee of $1,000,000, payable in two payments of $200,000 each in cash and a third payment of $600,000 in cash or in common shares of Cannapay due within 3 years of signing the licence agreement, with the exception that if Cannapay completes an IPO at a price per offered security of $0.25 or higher, Cannapay will issue to Glance, contemporaneously with closing the IPO at a price per security equal to the price per security under the IPO, as many voting shares in payment towards the $600,000 fee as results in Glance holding, in the aggregate, a maximum of 49% of Cannapay's issued and outstanding voting shares immediately after closing the IPO. Any outstanding amounts to bring the full payment to $600,000 will be due and payable within 3 years of the date of the licence in cash or in common shares of Cannapay. Glance will also receive a 50% royalty on the revenue from all sublicences and will receive additional fees for any development work required for customization and operation of the Cannapay payment platform. In conjunction with the first two payments under the licence agreement, Glance will purchase an aggregate of 8,000,000 common shares of Cannapay at a price of $0.05 per share for a total investment of $400,000, with the result that Glance will own approximately 48% of Cannapay, and Cannapay will be treated as a non-controlled partially owned subsidiary over which Glance exerts significant influence. Separate financial statements for Cannapay will be maintained in accordance with IAS28.
According to a recent study disclosed in the Toronto Star, legalized recreational marijuana promises to spark a $22.6 billion industry in Canada, eclipsing combined sales of beer, wine and spirits. According to Business Insider, the legal weed market is growing as fast as broadband Internet in the 2000s with an annual projected growth rate of 25% through 2021.
Fees from the licence agreement will be recorded in Glance's financial statements as a related party transaction, as Penny Green is a director and President of both Glance and Cannapay.
About Cannapay Financial Inc.
Cannapay combines traditional financial service with innovative technology to provide enhanced digital financial services to legally operating businesses in the marijuana industry. The Company is also developing a mobile payment app that will allow users to order products from their smart phones, tablets or computer and have marijuana products delivered to their physical location in compliance with local rules and regulations.
About Glance Technologies Inc.
Glance Technologies owns and operates Glance Pay, a streamlined payment system that revolutionizes how smartphone users choose where to dine, order food & drink, settle bills, access digital receipts, earn great rewards, & interact with merchants. Glance is building a valuable network of merchants and consumers, and offers targeted in-app marketing, social media marketing, customer feedback, in-merchant messaging and custom rewards programs. The Glance Pay mobile payment system consists of proprietary technology, which includes user apps available for free downloads in IOS (Apple) and Android formats, a merchant manager apps, large scale technology hosting environment with sophisticated anti-fraud technology and lightning fast payment processing.
For more information about Glance, please go to Glance Technologies' website.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking information or forward-looking statements including the completion of the rights offering (collectively "forward- looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. Glance cautions investors that any forward-looking information provided by Glance is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to Glance's public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Glance's profile on SEDAR at www.sedar.com.
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SOURCE Glance Technologies Inc.