NATL National Interstate Corporation

Clip Money, Inc.  (“Clip” or the “Company”) (TSXV:CLIP) (OTCQB:CLPMF), is pleased to announce its financial results for the three months and fiscal year ended December 31, 2023.

Clip achieved significant milestones throughout the year, including (i) the expansion of the largest multi-bank deposit network in the United States for businesses, (ii) the strategic investment and partnership with NCR Atleos (NYSE:NATL), (iii) the launch of the Clip Change Order solution and (iv) noteworthy year-over-year customer and revenue growth.

Clip’s platform enables cash deposits through the ClipDrop network, which has been deployed across the U.S. and Canada in leading retail locations such as Simon, Brookfield Properties, Spinoso, Tanger, and Bentall Green Oak. In addition to ClipDrop locations, Clip customers can now deposit at more than 2,500 NCR cash-accepting ATMs operating across 30 states and serving over 70 of the largest population centers across the United States. This network creates unmatched locational convenience, making it easier and more cost-effective for businesses to deposit into any bank account. Since launching deposit services in the U.S. in late 2022, Clip has garnered strong customer interest and demand from leading retailers in North America.

Fiscal Year 2023 Highlights

• Revenue for 2023 was $577,919, compared to $27,687 in 2022, representing nearly 20x growth year-over-year (“YoY”). Revenue in Q4 alone was $352,582, which was fueled by a seasonal surge in deposit volumes and new user growth. 
• In 2023, Clip established active depositing relationships across a variety of business segments, further validating the value proposition it brings to customers. Clip’s growth included customer segments such as Quick Serve Restaurants (QSR), Convenience Store and Gas Station operators, Apparel, Jewelers, Entertainment, and Retail merchandise. Leading national brands such as Lids, Miss A, Invicta, and Cherry Hill Programs are benefiting from Clip’s solutions through regular deposits and change ordering via the Clip Platform.
• On December 19, 2023, the Company entered into a binding offer letter with the Business Development Bank of Canada (“BDC”) for a loan in the amount of CDN$500,000 in the form of non-revolving subordinated secured debt (the “BDC Loan”). The BDC Loan bears interest at a floating rate equal to the BDC floating base rate plus a margin of 1.00%. The BDC base rate as of December 19, 2023 was 9.30% per annum. All obligations of the Company under the BDC Loan are secured by a third-lien security interest that is subordinated to prior security interests granted to certain existing lenders of the Company.
• On September 21, 2023, the Company completed a non-brokered private placement of 28,596,826 common shares in the capital of the Company (each a “Common Share”) at a price of CDN$0.23 per Common Share for gross proceeds of approximately $4,900,000 (the “Equity Financing”). Separately, the Company also completed a non-brokered private placement of secured convertible notes of the Company (each a “Secured Note”) for gross proceeds in the principal amount of $6,132,271, inclusive of $1,032,271 subscribed for by an existing arm’s length investor (the “Secured Notes Financing”). Cardtronics, Inc. (“Cardtronics”), a wholly-owned subsidiary of NCR Atleos Corporation (NYSE:NATL), subscribed for the entire Equity Financing and $5,100,000 of the Secured Note Financing, for a combined $10,000,000 investment in the Company.
• On June 14, 2023, the Company closed a private placement of note units (each a “Note Unit”) for aggregate gross proceeds of $2,928,572 (CDN$3,903,714) (the “Unsecured Notes Financing”). Each Note Unit consisted of one 12% unsecured convertible note with a principal amount of CDN$1,000 (each an “Unsecured Note”) and 1,000 common share purchase warrants of the Company.

"As we close a successful year at Clip, I am proud to share that our relentless dedication has led to the implementation of a scaled operation and platform. This achievement, coupled with the endorsement of our value proposition by several large nationwide retailers and our partnership with NCR Atleos, underscores our commitment to innovation and excellence. Our collaboration with NCR Atleos further strengthens our position in the market and enhances our ability to deliver cutting-edge solutions to our customers. Together, we are poised for even greater success as we continue to expand our reach and drive growth. Looking ahead to 2024, we are excited to announce the launch of new solutions including ClipChange and ClipATM that will further accelerate our growth and solidify our leadership in the industry. These developments represent our ongoing efforts to meet the evolving needs of our customers and exceed expectations. I extend my sincere appreciation to our team, customers, partners, and stakeholders for their unwavering support. Together, we are shaping a future of continued success and prosperity for Clip.”

Joseph Arrage (CEO & Co-founder)

Additional Information

The Company’s audited consolidated financial statements, notes to financial statements, and management’s discussion and analysis for the year ended December 31, 2023 are now available on the Company’s SEDAR+ profile at www.sedarplus.ca. Unless otherwise indicated, all references to “$” in this press release refer to US dollars.

Forward‐Looking Statements

This news release may contain forward‐looking statements (within the meaning of applicable securities laws) which reflect the Company's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the future success of the Company's business.

The forward-looking statements in this news release are based on certain assumptions. The forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

About Clip Money Inc.Clip operates a multi-bank, self-service deposit system for businesses through its network of ClipDrop Boxes and Clip-enabled ATMs. Rather than going to their personal bank branch or using an armored carrier service, businesses can deposit their cash at any ClipDrop or ATM located nearby at top retailers and shopping malls. Deposited funds are automatically credited to the business’ bank account, usually within 1 business day. The company combines functional hardware, an intuitive mobile app, and an innovative cloud-based transaction engine that maximizes business banking transactions. Clip also facilitates mobile change orders, which are fully-insured and shipped within 1-2 business days. Clip offers a cost-effective and convenient solution for business banking deposits across major markets in Canada and the United States. For more information about the Company, visit www.clipmoney.com.

For further information, please contact:

Joseph ArrageChief Executive Officertel: 844-593-2547