KABN North America (CSE: KABN) Announces Closing of $1.15 Million Brokered Private Placement Financing

TORONTO, ON / December 23, 2020 / KABN Systems NA Holdings Corp. (CSE:KABN) (the “Company” or “KABN North America” or “KABN NA“), a Canadian Fintech company that specializes in continuous online identity verification, management and monetization in Canada and the U.S., is pleased to announce that it has closed its previously announced brokered private placement of units of the Company (the “Units“), pursuant to which the Company issued 7,666,667 Units at a price of $0.15 per Unit (the “Offering Price“) for aggregate gross proceeds of $1,150,000 (the “Offering“). The Offering was led by Mackie Research Capital Corporation as sole agent and sole bookrunner (the “Agent“).

Each Unit is comprised of one common share of the Company (a “Common Share“) and one Common Share purchase warrant (a “Warrant“). Each Warrant is exercisable to acquire one Common Share (a “Warrant Share“) at an exercise price of $0.20 per Warrant Share, for a period of 24 months from the closing of the Offering.

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The Company intends to use the net proceeds raised under the Offering for working capital and general corporate purposes.

In connection with the Offering, the Agent received an aggregate cash fee equal to 8.0% of the gross proceeds from the Offering including in respect of any exercise of the Agent’s Option. In addition, on closing the Company granted the Agent non-transferable compensation options (the “Compensation Options“) equal to 8.0% of the total number of Units sold under the Offering (including in respect of any exercise of the Agent’s Option). Each Compensation Option entitles the holder thereof to purchase one Unit at an exercise price equal to the Offering Price for a period of 24 months following the Closing.

In addition, the Company has paid the Agent a financial advisory fee satisfied by the issuance of 830,000 Common Shares.

The securities issued pursuant to the Offering are subject to a four-month and one day hold period under applicable securities laws in Canada.

The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.

About KABN North America

KABN Systems NA Holdings Corp. through its wholly owned subsidiary KABN Systems North America Inc. focuses on the verification, management and monetization of digital identity, empowering users to control and benefit from the use of their online identity. KABN NA’s propriety technology suite includes 4 key products:

Liquid Avatar allows users to create high quality digital icons representing their online personas. These icons, in conjunction with KABN ID, allow users to manage and control their Self Sovereign Identity and to use Liquid Avatars to share verifiable credentials, including access, identity and designation credentials, and public and permission based private data when they want and with whom they want. www.liquidavatar.com

KABN ID is an Always On, biometric and blockchain based digital identity validation and verification platform allowing users to continuously and confidently prove themselves throughout the online community.

KABN Card is a Visa approved prepaid card program allowing users to manage both digital and fiat currencies and earn cashback and other loyalty incentives. www.kabncard.com

KABN KASH is a cashback, loyalty and engagement program that powers the KABN NA’s revenue ecosystem. KABN NA provides its products and services at no cost to consumers and generates revenues through permission-based partner programs. www.kabnkash.com

For more information, please visit www.kabnnaholdco.com or www.kabnsystemsna.com

KABN Systems NA Holding Corp. is a publicly listed company listed on the Canadian Securities Exchange under the symbol “KABN”.