Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 5

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 5
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 23, 2013 under the name “Asiya Pearls, Inc.”), entered into an Agreement and Plan
of Merger (the “Merger Agreement”) with Qpagos Corporation, a Delaware corporation (“Qpagos Corporation”), and
Qpagos Merge, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“Merger Sub”). Pursuant to the
Merger Agreement, on May 12, 2016, the merger was consummated, and Qpagos Corporation and Merger Sub merged (the “Merger”),
with Qpagos Corporation continuing as the surviving corporation of the Merger. On May 27, 2016, the Company’s name was changed
from “Asiya Pearls, Inc.” to “QPAGOS”.

Pursuant to the
Merger Agreement, upon consummation of the Merger, each share of Qpagos Corporation’s capital stock issued and outstanding immediately
prior to the Merger was converted into the right to receive two shares of Common Stock. Additionally, pursuant to the Merger Agreement,
upon consummation of the Merger, the Company assumed all of Qpagos Corporation’s warrants issued and outstanding immediately prior
to the Merger, which were exercisable for an aggregate of approximately 621,920 shares of Common Stock as of the date of the
Merger. Prior to and as a condition to the closing of the Merger, a then-current holder of 500,000 shares of Common Stock agreed
to return 497,500 shares of Common Stock held by such holder to the Company and such holder retained an aggregate of 2,500 shares
of Common Stock. The other stockholders of the Company retained 500,000 shares of Common Stock. Therefore, immediately following
the Merger, Qpagos Corporation’s former stockholders held 4,992,900 shares of Common Stock which represented approximately 91%
of the outstanding Common Stock.

The Merger was treated
as a reverse acquisition of the Company, then a public shell company, for financial accounting and reporting purposes. As such, Qpagos
Corporation was treated as the acquirer for accounting and financial reporting purposes while the Company was treated as the acquired
entity for accounting and financial reporting purposes.

Qpagos Corporation was
incorporated on May 1, 2015 under the laws of the state of Delaware to effectuate a reverse merger transaction with Qpag