Currency Exchange International (CXI) Status Update summary

Strategic decision and rationale

• Announced discontinuation of Canadian subsidiary, Exchange Bank of Canada (EBC), with plans to seek discontinuance from the Bank Act in Q4 2025, pending regulatory approval.

• Decision followed a special committee review of strategic options, supported by an independent advisor, aiming to maximize long-term shareholder value.

• Challenging Canadian market conditions and high operational costs prompted the exit, with focus shifting to US operations and fintech growth.

• Referral agreements are being pursued to transition EBC customers and select employees to established Canadian financial businesses, with no payment expected for referrals.

• EBC is committed to minimizing disruption for stakeholders and supporting employees during the transition.

Financial and operational impacts

• One-time costs related to restructuring, vendor termination, severance, and professional fees will be incurred, mainly over the next six months.

• Profitability is expected to be maintained during the transition, with more detailed financial impacts to be provided in the Q1 update.

• EBC and Canadian operations will be reported as discontinued operations starting in Q2 2025.

• The exit is anticipated to eliminate Canadian losses and streamline the group into a more nimble, fintech-focused operator.

• Transfer pricing and stranded costs between US and Canada will be analyzed and disclosed in the Q1 update.

US business focus and continuity

• US operations remain unaffected by the EBC exit, with payment and cash businesses continuing through existing US banking partners.

• Growth in US fintech and payment businesses is a key focus, with positive long-term outlook.

• No plans to transition EBC’s international clients to the US business; focus remains on US and Canadian client transitions.

• The group structure will revert to a publicly traded fintech money service business, emphasizing proprietary software and operational agility.

• Plans are in place to establish direct correspondent banking relationships to support U.S. payments business.