Acquisition of 3 Billion XTP Tokens

Tap Global Group plc (AIM: TAP), an innovative digital finance hub that brings money payments and crypto settlement services together in a single user-friendly app, is pleased to announce it has acquired three billion XTP tokens from Tap N Go Ltd ("Tap N Go") for nil cost. The tokens are worth approximately US$1.8 million based on prevailing market prices.

XTP is one of the most actively traded tokens on the Tap platform, with strong user adoption. Tap has over 32,850 users with an XTP balance on its platform, demonstrating the high level of existing and potential future synergy. The acquisition also strengthens Tap Group's balance sheet and digital asset treasury, which includes 6.14 Bitcoin, and deepens the Tap-XTP ecosystem integration as the tokens can be used for cashback rewards and other incentives.

Background and Rationale

XTP is a digital token that has been available for trading on the Tap platform since its launch in 2020. The token's utility is deeply integrated into Tap's ecosystem, including fee discounts for users who elect to pay trading fees in XTP, and cashback rewards of up to 8% on card spend through the existing commercial agreement between Tap Group and Tap N Go, which was announced on 1 July 2024.

The acquisition of 3 billion XTP tokens provides the Company with a significant strategic reserve to deploy across multiple growth initiatives, including customer acquisition incentives, loyalty reward schemes, trading volume promotions, and partnership development. This acquisition provides Tap Group with one of the largest token treasuries of any AIM-listed company and reinforces the mutually beneficial relationship between the Tap platform and the XTP ecosystem.

As of the date of this announcement, the fully diluted market capitalisation of the XTP token is approximately US$5.9 million The 3 billion XTP tokens represent approximately 30% of the total token supply.

Planned Use of XTP Tokens

The Company intends to deploy the acquired XTP tokens strategically across the following areas:

• Cashback rewards programme: Expanding the existing XTP cashback on card spend to drive user engagement and card transaction volumes
• User acquisition incentives: Sign-up bonuses and first-trade rewards denominated in XTP to accelerate new customer onboarding
• Trading volume promotions: Time-limited trading fee rebates paid in XTP to drive exchange volumes and revenue
• Referral programme: XTP-denominated referral bonuses to drive organic growth
• Strategic reserve: Holding a meaningful position to support long-term ecosystem development and potential future partnerships

Arsen Torosian, CEO of Tap Group, commented:

"Acquiring three billion XTP tokens valued at US$1.8 million at no cost to Tap Group is a great deal for the Company and its shareholders. This acquisition gives us a powerful strategic asset that we can deploy to accelerate user growth, drive trading volumes, and deepen engagement across our platform.

As the owner of Tap N Go, and as Tap Group's largest shareholder, I believe we can create more value for both Tap Group shareholders and XTP token holders through this transaction and alignment.

XTP has always been deeply intertwined with Tap's platform, and this acquisition cements that relationship. Our aim is to build the biggest crypto bank, and this is another milestone on that journey."

Related Party Transaction

Tap N Go is controlled by Arsen Torosian, Chief Executive Officer and Co-Founder of Tap Group. Accordingly, this acquisition constitutes a related party transaction under AIM Rule 13.

The independent directors, being all of the directors other than Arsen Torosian, consider, having consulted with SPARK Advisory Partners Limited, the Company's Nominated Adviser, that the terms of the acquisition are fair and reasonable insofar as the Company's shareholders are concerned.

Tap Group's operating subsidiaries

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