Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 2182

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7A
Chunk 2182
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 of Merger (the “Qpagos
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 Qpagos Merger Agreement,
on May 12, 2016, the merger was consummated, and Qpagos Corporation and Merger Sub merged (the Qpagos “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 Qpagos Merger Agreement, upon consummation of the Qpagos 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 the Company’s common stock, par
value $0.0001 per share (the “Common Stock”). Additionally, pursuant to the Qpagos 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 Qpagos Merger.
Prior to and as a condition to the closing of the Qpagos 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 Qpagos Merger, Qpagos Corporation’s former stockholders held 4,992,900 shares of Common Stock which represented approximately 91%
of the outstanding Common Stock.

The
Qpagos 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