Mr. Gordon Reykdal of Everyday People Financial reports

EVERYDAY PEOPLE FINANCIAL CORP. AND XTM INC. ANNOUNCE STRATEGIC MANAGEMENT SERVICES AGREEMENT TO INTEGRATE CANADIAN PAYMENTS OPERATION

Everyday People Financial Corp. and XTM Inc. have entered into a management services and program management agreement (MSA) dated Oct. 22, 2025, under which Everyday People Financial, through a jointly formed subsidiary called Everyday People Payments Inc. (Everyday Payments), will be assigned full operational management, compliance oversight and technology administration of XTM's Canadian-network-branded card and digital wallet programs. The MSA is expected to have an initial term of five years from the effective date, automatically renewing for successive five-year periods unless terminated earlier in accordance with the terms of the agreement.

This agreement combines both companies' payment technologies under Everyday People Financial's Digital Commerce Bank (DC Bank) issuing and processing platform, creating one of Canada's most comprehensive fintech (financial technology) ecosystems for earned wage access, corporate disbursement and digital wallet solutions.

"This partnership accelerates our strategy to deliver a unified, scalable and compliant payments infrastructure across North America," said Gordon J. Reykdal, executive chairman of Everyday People Financial. "By combining XTM's client base and technology with EPF's regulatory, operational and banking framework, we are unlocking high-margin recurring revenues and long-term value for both shareholder groups."

"Partnering with EPF ensures that our programs operate on some of the most compliant infrastructure operators in Canada and that their staff are delighted by new features, including lending," said Marilyn Schaffer, chief executive officer of XTM. "This partnership enables XTM to focus on cross-border expansion of gig payments and earned wage access across various new verticals. This transaction is immediately accretive to XTM's financial performance and aligns with its focus on debt reduction, sustainable growth and profitability."

Transaction economics

XTM contributes advanced financial technology, a powerful sales network and a loyal consumer base with approximately 200,000 active card users while Everyday People Financial adds a decades-long partnership with DC Bank, a proven operational framework and a customer-first brand philosophy focused on service excellence. Pursuant to the terms of the MSA:

• The jointly formed subsidiary called Everyday Payments will be owned 90 per cent by XTM and 10 per cent by Everyday People Financial with significant net revenue milestones allowing Everyday People Financial to earn additional equity over time to a maximum of 49.9 per cent with a right-of-first-refusal option to purchase XTM's shares of Everyday Payments at a later mutually acceptable date.
• Everyday People Financial will assume full management and cost responsibility for all Canadian-network-branded card, and wallet programs under the Everyday Payments brand.
• XTM's historical operating costs, including technology support, compliance, reconciliation and program management, will be fully eliminated, replaced by Everyday People Financial's existing infrastructure and personnel.
• Everyday People Financial will manage these programs with fewer than six incremental team members, leveraging its integrated systems to achieve material economies of scale.
• All programs will operate under Everyday People Financial's DC Bank Visa platform, ensuring regulatory compliance and daily settlement through trust accounts.
• Net revenue sharing is defined as revenue share after deducting only direct network, banking and processor costs.

XTM's net revenues in 2024 were $9.1-million and the collaboration is anticipated to generate annualized revenues in line with historical results within 12 months of full transition, with a significant increase in bottom-line profit share due to Everyday People Financial's cost absorption and consolidated operations. The MSA is structured as a capital-light, profit-sharing model requiring minimal new head count and no shareholder dilution.

"With EPF managing all operational, compliance and technology layers, XTM immediately eliminates significant ongoing costs while maintaining participation in future revenues," added Tyler Hatch, Everyday People Financial co-chief executive officer, EP Financial Services. "The efficiency of this integration, executed with fewer than six new hires, translates directly to higher EBITDA [earnings before interest, taxes, depreciation and amortization] and margin expansion for both companies."

Strategic rationale:

• Cost efficiency: XTM removes the burden of legacy operational costs, resulting in immediate improvement to its cash flow and profitability.
• Regulatory compliance: Everyday People Financial serves as the payment service provider of record, ensuring full alignment with Bank of Canada oversight.
• Scalability: Unified processing under Everyday People Financial's infrastructure enables faster client onboarding, real-time settlement and expansion into new verticals, including hospitality, gig and franchise payroll.
• Revenue synergy: Shared monetization across interchange, SaaS (software-as-a-service) and lending programs enhances predictability and recurring income for both companies.
• Technology continuity: XTM's proprietary wallet and app technology will continue to operate under the Everyday Payments brand, with Everyday People Financial providing continuing management, compliance and integration.

About Everyday People Financial Corp.

Everyday People Financial is a technology-driven financial services company with a mission to help individuals and businesses manage money better. First established in 1988, the company has a work force of over 600 people operating in the United Kingdom and Canada providing fully fee-for-service solutions across two business pillars operating in Canada and the United Kingdom.

Revenue cycle management (RCM) helps organizations recover receivables and streamline billing processes without purchasing consumer debt and financial services provide digital tools and credit access programs that support Canadians on their financial journey.

Founded on the belief that everyone deserves a second chance to rebuild financial health and wealth, the company is committed to providing affordable, innovative and responsible financial solutions that create lasting value for the company's clients, customers and shareholders.

Everyday People Financial is changing the way people manage money by enhancing its client and consumer services with the company's own affordability assessment programs with specialized financial products and literacy programs. Everyday People Financial is helping everyday people rebuild their financial health for generational wealth. Everyday People Financial stands for creativity and entrepreneurship. Everyday People Financial's combination of companies, products and services has been established to ensure the company can fulfill consumers' financial needs and service them in a low-cost and effective manner.

About XTM Inc.

XTM is a fintech innovator providing real-time payment and earned wage access solutions. XTM's platform enables instant access to earnings for workers and contractors through digital wallets and prepaid cards, serving restaurants, hospitality and gig-economy sectors across North America.

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