New Payment Processing Joint Venture Making Progress Towards Anticipated Third Quarter Launch and Initial Revenues
Joint Venture Expands into Traditional Credit Card Processing in Addition to New Real-Time Consumer-To-Merchant Payments Solution
CARMEL BY THE SEA, Calif.,
IPEX was formed to provide a new proprietary, real-time consumer-to-merchant payment solution called Instant-Settlement in RealTime™. IPEX is focused on providing payment solutions to so-called high-risk sectors such as online gaming and entertainment.
Key IPEX developments since the
- IPSI has made an initial capital contribution of
$200,000 to IPEX as part of its$1.5 million total commitment amount. In exchange for this capital contribution, IPSI received its first tranche of equity ownership in IPEX amounting to 4.4% of the IPEX. This capital infusion will accelerate product delivery and cover IPEX’s start-up costs. If the full$1.5 million of capital is contributed to IPEX by IPSI, IPSI would own one-third of the joint venture. - The IPEX joint venture partners have agreed to expand the scope of services provided by IPEX to include traditional credit card processing. This expansion will allow IPEX to cater to a broader range of merchants, provide comprehensive payment solutions tailored to their specific needs, and create near term revenue generating potential for IPEX.
- IPEX has secured key relationships with commercial banks, which help solidify the robust financial infrastructure needed to support both the traditional credit card processing as well as IPEX’s new Instant-Settlement in RealTime payments solution.
- The development of IPEX’s proprietary Instant-Settlement in RealTime technology, which integrates application programming interfaces (known as APIs), will enable ecommerce businesses to seamlessly manage payments, providing a secure and efficient payments experience.
- The IPEX joint venture partners have begun soft marketing of the IPEX payment solutions to potential customers, including current customers of OpenPath who could benefit from IPEX’s new real time payments platform.
- As a result of these developments, it is now anticipated that IPEX could generate initial revenues during the third quarter of this year, which could pave the way for potential cash distributions to IPSI by the end of the year, assuming market acceptance of IPEX’s services and solutions and the availability of net cash for distribution to the IPEX joint venture partners.
In addition, the joint venture partners have recently executed the definitive operating agreement for IPEX. The Form 8-K filed by IPSI on
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This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 made by Company management and the Company’s commercial collaborators. All statements other than statements of historical fact contained in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate, “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” or “will” or the or the negative of these terms or other comparable terminology. These forward-looking statements are based on expectations and assumptions as of the date of the press release and are subject to significant risks and uncertainties, many of which are difficult to predict that could cause actual results (including the anticipated benefits to the Company (including potential revenue generation) of its participation in the IPSIPay Express joint venture as described herein) to differ materially and adversely from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include, among others: (i) whether the IPSIPay Express joint venture partners can develop and commercially launch IPSIPay Express on the timeframes anticipated, if at all; (ii) challenges with the gaming, entertainment and other markets in IPSIPay Express expects to operate; (iii) merchant and customer acceptance of IPSIPay Express as an alternative payment method, (iv) the ability of IPSIPay Express to generate revenue and distribute cash to the Company; (v) the Company’s ability to continue its commercialization efforts for the IPSIPay® App and related capabilities; (vi) the Company’s ability to increase its number of active users and generate revenue from such users on a continuing basis; (vii) the Company’s ability to operate its platform without errors; (viii) the Company’s ability to operate its technology for use in all
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