CannaSys, Inc. Announces Acquisition of Alliance Financial Network, Inc.
March 30 2017 - 8:45AM
InvestorsHub NewsWire
CannaSys, Inc. Announces Acquisition of
Alliance Financial Network, Inc.
Fintech Company
Provides Proprietary and Innovative Mobile Payment Solution across
Multiple Industries
DENVER, CO --
March 29, 2017 -- InvestorsHub NewsWire -- CannaSys, Inc. (OTC
QB: MJTK), a marketing, branding, and
technology company, signed a letter of intent to acquire Alliance
Financial Network, Inc. ("AFN"). AFN is a Colorado-based financial
technology (Fintech) company that provides a unique, proprietary
digital transaction and mobile payment solution.
AFN, a federally
registered financial institution, has developed, owns and operates
eXPO™, its electronic eXchange
POrtal.
eXPO™ provides access
for consumers and businesses to transfer funds electronically,
whether consumer-to-consumer, consumer-to-business,
business-to-consumer or business-to-business. eXPO™ delivers electronic payment
solutions to multiple industries. AFN is currently working with
companies in a number of vertical markets that can leverage the
eXPO system immediately because of its universally compliant
foundation and its ability to be scaled rapidly.
AFN's proprietary
eXPO™ technology facilitates transactions between
members inside the eXPO™ network, and between network
members and those outside the network, to address those served by
traditional, as well as non-banked, under-banked and cash intensive
industries. eXPO™ members include consumers, businesses, and governmental agencies. eXPO™ has the ability to
accurately track and report local, state, and if applicable,
federal tax obligations of consumers and retailers. eXPO™ can be
found at www.getexponow.com.
AFN and eXPO™ are
registered with the U.S. Department of the Treasury Financial
Crimes Enforcement Network (FinCEN) as a financial institution.
This registration provides AFN with the appropriate regulatory
framework and guidance on a federal level for Bank Secrecy Act
(BSA) and Anti-Money Laundering (AML) compliance. The
eXPO™ mobile application is downloadable by consumers and
businesses once they become an eXPO™ member.
CannaSys will acquire
AFN by issuing a controlling equity stake in the proforma company,
whereby AFN will become a wholly owned CannaSys subsidiary. The
combined company will market AFN's products, and platforms, as well
as the CannaSys suite of products. As part of the transaction,
AFN's nominees will become directors and key officers of CannaSys,
and the Cannasys, Inc. name will be changed to Alliance Financial
Network, Inc. On February 12, 2017, CannaSys solidified its
commitment to closing the transaction with a direct investment in
AFN.
"I could not be more
excited about AFN's core products, its management
team,
and its exponential
growth prospects across multiple industries," commented CannaSys
CEO, Michael Tew. "eXPO™ was created to meet the demands of a
changing landscape within the payments industry, and it
demonstrates how the fintech sector continues to introduce
revolutionary product offerings."
In addition to the
controlling interest issued to AFN as part of the transaction, AFN
will be eligible to earn additional shares for meeting certain
performance targets based upon the rollout of its core
eXPO™
technology within the
next two years. The metrics for the earn-out are the
following:
- 1. Executed agreement or contracts that use AFN's technology
and/or platform and result in projected revenue of $5 million in
the following 12 months; or
- 2.Executed agreement or contracts with commercially reasonable
terms that result in the deployment of AFN's technology in more
than 250 retailers over the following 12 months.
"The earn-out
targets are a cornerstone of AFN's alignment with shareholders and
further demonstrates AFN's conviction regarding its products and
business strategy," commented Tew.
Larry Lipman, AFN CEO
and founder, noted: "Our transaction with CannaSys is accretive to
AFN's discussions with regulators and retailers. We have already
made substantial progress in delivering a valuable
regulatory-compliant product to the marketplace. Now we are focused
on accelerating growth opportunities in the upcoming
year."
Completion of the AFN
acquisition is contingent on a number of factors, including the
execution of a definitive acquisition agreement, compliance with
representation and warranties, the satisfaction of specified
conditions, and other matters.
About CannaSys,
Inc.
CannaSys is a
technology solutions, marketing, and branding company. Its core
products are delivered "software as a service" to facilitate
point-of-purchase transactions, customer relationship marketing
solutions. CannaSys plans to develop, acquire, and build strategic
relationships with other businesses in order to bring additional
solutions to market. For more information, please
visit www.cannasys.com
About Alliance Financial Network,
Inc.
Alliance Financial
Network, Inc. (AFN) is a federally registered financial institution
that owns and operates eXPO™, a mobile payment solution that
has the ability to track product inventory, delivery and generate
audit-ready reports. AFN conducts compliance reviews on all
clients. These reviews are designed to meet financial industry
standards for know-your-customer requirements and regulatory
reporting. In addition to AFN's inventory-to-general-ledger
tracking system, the company features access to federally licensed,
secure and compliant cash transport, which also includes storage
(vaulting) and delivery to the Federal Reserve.
AFN's enterprise
end-to-end ecosystem enables licensed users to interact in a
secure, transparent environment. This unique system enforces
compliance at every step, ensuring clear and connected tracking for
regulatory audits and accounting purposes. AFN believes its
eXPO™
product will become
the gold standard for industry compliance and mobile payment
solutions.
FORWARD-LOOKING STATEMENTS
This release includes
forward-looking statements. Investors are cautioned that such
forward-looking statements involve risks and uncertainties,
including continued acceptance of CannaSys's products, increased
levels of competition for CannaSys, new products and technological
changes, CannaSys's dependence on third-party suppliers, and other
risks detailed from time to time in CannaSys's periodic reports
filed with the U.S. Securities and Exchange Commission.
CannaSys, Inc.
Michael A. Tew
Chief Executive Officer
Tel: 720.420.1290
Email: michael.tew@cannasys.com