TORONTO, Sept. 26,
2024 /CNW/ - Payfare Inc. (TSX: PAY) (OTCQX:
PYFRF), a leading international Earned Wage Access ("EWA")
company powering instant access to earnings and digital banking
solutions for workforces, today announced that its core services
agreement related to DoorDash, Inc.'s DasherDirect card program
will not be renewed beyond the current term in early 2025.
DasherDirect is currently Payfare's largest program, and the
revenue derived from the program has been a substantial proportion
of Payfare's total revenues. As such, Payfare is withdrawing its
previously issued 2024 financial guidance for revenue and earnings,
as the Company and DoorDash establish a transition plan to begin in
the fourth quarter of 2024. Both parties are expected to work
collaboratively during the remainder of the term.
Payfare has over $100 million in
cash, cash equivalents, and guaranteed investment certificates and
is well capitalized to fund its new strategic initiatives.
Payfare continues to see high growth with its other client
programs and is working on securing new, large-scale EWA programs
in both the gig economy and employee verticals. The Company
believes the aggregate Gross Dollar Value ("GDV") from these
opportunities could mitigate the impact of the DoorDash
non-renewal.
Board of Directors Update
Following receipt of his resignation to be effective on
September 26, 2024, Mr. Hugo Chan will no longer serve as a director of
the Company. Mr. Chan, who has served on the Board during the prior
two years has since moved to become a resident in Asia and has resigned for personal reasons.
The Company thanks Mr. Chan for his expertise and support over the
years.
About Payfare (TSX:PAY, OTCQX: PYFRF)
Payfare is a leading, international Earned Wage Access company
powering instant access to earnings through an award-winning
digital banking platform for today's workforce. Payfare partners
with leading e-commerce marketplaces, payroll platforms and
employers to provide financial security and inclusion for all
workers.
Cautionary Statement Regarding Forward Looking
Information
Information and statements contained in this news release that
are not historical facts are "forward-looking information" within
the meaning of applicable securities legislation that involve risks
and uncertainties relating, but not limited, to Payfare's current
expectations, intentions, plans, and beliefs. Forward-looking
information can often be identified by forward-looking words such
as "anticipate", "believe", "expect", "goal", "plan", "target",
"intend", "estimate", "could", "should", "may" and "will" or the
negative of these terms or similar words suggesting future
outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions or statements about future events or
performance. Examples of forward-looking information in this news
release include, without limitation: the actual timing for the
non-renewal and eventual termination of the Company's services
agreement with DoorDash, the anticipated material impact on future
revenues and earnings, winning new EWA programs in both the gig
economy and employee verticals and aggregate potential new GDV
opportunities being able to mitigate the impact of the non-renewal
of the Agreement with DoorDash. This forward-looking information is
based, in part, on assumptions and factors that may change or prove
to be incorrect, thus causing actual results, performance or
achievements to be materially different from those expressed or
implied by forward-looking information.
Security holders, potential security holders and other
prospective investors should be aware that these statements are
subject to known and unknown risks, uncertainties and other factors
that could cause actual results to differ materially from those
suggested by the forward-looking statements. Such risks include the
factors discussed from time to time in Payfare's filings with the
Canadian Securities Authorities, copies of which can be found under
Payfare's profile on the SEDAR+ website at www.sedarplus.ca. In
addition, there is risk that the non-renewal of the Agreement with
DoorDash is either expedited or delayed in comparison to current
expectations, or that new client opportunities will take longer to
execute on and therefore delay the mitigation impacts sought by the
Company. Security holders, potential security holders and other
prospective investors are cautioned not to place undue reliance on
forward-looking information. By its nature, forward-looking
information involves numerous assumptions, inherent risks and
uncertainties, both general and specific, that contribute to the
possibility that the predictions, forecasts, projections and
various future events will not occur. Payfare undertakes no
obligation to update publicly or otherwise revise any
forward-looking information whether as a result of new information,
future events or other such factors which affect this information,
except as required by law.
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content:https://www.prnewswire.com/news-releases/payfare-and-doordash-to-not-renew-agreement-302260513.html
SOURCE Payfare Inc.
