Mr. Steve Levely reports

ACKROO ACQUIRES BNA SMART PAYMENTS

Ackroo Inc.'s wholly owned subsidiary, Ackroo Canada Inc., has entered into a definitive agreement with BNA Smart Payment Systems Ltd. (BNA), a value-added electronic payments provider, under which the company has acquired certain assets of BNA Smart Payments. Under the terms of the acquisition, the company has acquired BNA's software and hardware payment solutions and all related customer contracts representing between $35,000 and $40,000 of monthly recurring revenue spread across automotive, retail, hospitality and petroleum merchants.

In consideration for the acquisition, the company has paid $200,000 and will pay 100 per cent of the net residual payment commissions from BNA customers for the first 12 months and 50 per cent of the net residual payment commissions for the following 12 months to BNA.

"The addition of BNA's payment business is an exciting next step for Ackroo," commented Steve Levely, chief executive officer of Ackroo. "We introduced AckrooPay last summer with a focus on cross-selling/upselling our current customers with debit and credit services. We are continuing to create awareness with our current clients about this new service offering to add greater value for our clients while adding a new revenue stream for Ackroo. What we wanted to validate next was purchasing a payment portfolio to validate our ability to cross-sell/upsell our software solutions. We have been in discussions with a number of payment providers however BNA became the ideal portfolio for us to acquire first as their customer base stretches across all four merchant verticals Ackroo supports and their current primary acquiring partner is global payments, one of Ackroo's two acquiring partners, allowing for a smooth transition to Ackroo. BNA is also the past sister company to KESM/LoyalMark whom we acquired in late 2017, so we are very familiar with both the leadership team and many of the clients, making this the obvious first payment related acquisition we do.

"Although these are turbulent times for many businesses, we continue to focus on how we can better support our merchants and grow our business so that when businesses go back to normal we will be ready to further support and grow with them. This acquisition helps further strengthen Ackroo which in turn will allow us to further assist our growing client base in the years ahead."

"We are happy to have come to terms with Ackroo," commented Matt Moore, president of BNA Smart Payments. "After selling the KESM/LoyalMark business to Ackroo a couple years ago we had plans to also divest of the payments business to Ackroo when they were ready. The payments industry continues to consolidate with software companies like Ackroo as the need for an omni-channel offering becomes critical for merchants. Now that they have fully launched AckrooPay we are excited for our customers to begin leveraging the breadth of offering Ackroo has to offer."

About Ackroo Inc.

Ackroo provides merchants of all sizes a robust, cloud-based multicurrency marketing platform to help attract, engage and grow their customers while increasing their revenues and margins.

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