Highlights:
- Total Transaction Value (TTV) of $396m for the nine months ended March 31, 2021, an increase of 1,470% from
$25m for the same period in 2020
- Revenue of $21m for the three
months ended March 31, 2021, an
increase of 1,479% from $1.3m for
the same period in 2020
- Adjusted EBITDA Profit increased to $1m for the three months ended March 31 2021, up from Adjusted EBITDA Loss of
$480,170 for the same period in
2020
- March 2021 Quarter TTV of
$205m, an increase of 93% from
$107m for the same period in
2020
- Over $25m in cash and cash
equivalents based on today's date.
TORONTO and MELBOURNE, May 26,
2021 /CNW/ - BANXA Holdings Inc (TSXV: BNXA) (OTCQX:
BNXAF) (FSE: AC00) ("BANXA" or "The Company") a Payment Service
Provider (PSP) focused on providing clients safe, compliant access
to the digital assets market, is pleased to announce it has
recorded its maiden adjusted EBITDA profit since listing. The
Company anticipates continued revenue growth and recognizes that in
volatile markets, increased interest in cryptocurrencies from both
individuals and institutions, confirms the resilience of the
Company's business model, growing transaction volumes as crypto
currencies rise and fall.
Banxa had its initial public listing on January 6, 2021, and is the only Payment Service
Provider (PSP) serving the digital asset industry that is publicly
traded anywhere in the world.
Founder & Chairman Domenic
Carosa stated, "I am pleased to see the financial
performance of the business improving across all key metrics. I am
confident that moving forward we will continue to demonstrate to
our loyal stakeholders that we are steadfast in our mission to
build the bridge between the existing financial systems and the
emerging, expanding digital asset world."
Banxa CEO Holger Arians said "We
are very happy to announce these results. Over the previous three
months we have been focused on improving the service and experience
for our customers and expanding our capacity to service the rapidly
growing demand. The industry is maturing, with greater
infrastructure and interest. Our aim is to be at the forefront of
this new stage of development."
The Company is also announcing a Zoom Investor Event on
Thursday, May 27 at 4:30 ET detail below
Topic: Banxa Investor Call
Time: May 27, 2021 04:30 ET
Join Zoom Meeting
https://us02web.zoom.us/j/85058227028?pwd=WGFOaWVNbCsvV1RaY3VlcEZIeDN4UT09
Meeting ID: 850 5822 7028
Passcode: 038456
One tap mobile
+16465588656,,85058227028#,,,,*038456# US (New York)
+16699009128,,85058227028#,,,,*038456# US (San Jose)
Meeting ID: 850 5822 7028
Passcode: 038456
Find your local number:
https://us02web.zoom.us/u/kek0pQHOvA
Summary of financial results
- Revenue for the three months ended March
31, 2021, was AUD $21.0 M
compared with AUD $1.3 M for the same
period in 2020, an increase of 1,479%. Revenue for the nine months
ended March 31, 2021, was AUD
$ 28.4 M compared with AUD
$4.6 M for the same period in 2020,
an increase of 512%.
- Gross profit for the three months ended March 31, 2021, was AUD $6.0 M compared with AUD $0.8 M for the same period in 2020, an increase
of 686%. Gross profit for the nine-months ended March 31, 2021, was AUD $
8.2 M compared with AUD $1.5
for the same period in 2020, an increase of 454%.
- Adjusted earnings before interest, taxes, depreciation and
amortization for the three months ended March 31, 2021, totalled AUD $1 M compared with a negative EBITDA of AUD
$0.5 M for the same period in
2020.
- Net loss for three months ended March
31, 2021 totalled AUD $1.4 M
compared with net loss of AUD $0.6 M
for the same period in 2020. Net loss for nine months ended
March 31, 2021, was AUD $2.3 M , compared with net loss of AUD
$2.5 M for the same period in
2020.
Adjusted EBITDA is a non-IFRS financial measure that we
calculate as net income (loss) before tax excluding depreciation
and amortization expense, share based expense, unrealized gain on
inventory, finance expense and listing expense. Adjusted EBITDA is
used by management to understand and evaluate the performance and
trends of the Company's operations. The following table shows a
reconciliation of adjusted EBITDA to net income (loss) before tax,
the most comparable IFRS financial measure, for the three and nine
months ended 31 March 2021 and
2020:
|
|
|
Nine months
ended
31 March
2021
|
Nine months
ended 31 March
2020
|
Three months
ended 31
March 2021
|
Three months
ended 31
March 2020
|
Loss before
tax
|
$(1,079,542)
|
$(2,173,576)
|
$(171,497)
|
$(635,039)
|
Depreciation and
amortization
|
25,418
|
464,608
|
9,243
|
154,869
|
Share based
expense
|
1,218,501
|
-
|
1,117,860
|
-
|
Gain on fair value of
inventory
|
(2,744,986)
|
-
|
(380,364)
|
-
|
Finance
expense
|
580,826
|
-
|
399,123
|
-
|
Listing
expense
|
2,690,513
|
-
|
-
|
-
|
Adjusted
EBITDA
|
690,730
|
(1,708,968)
|
974,365
|
(480,170)
|
|
|
Investors Relations Agreement
The Company also announces that it has entered into an
employment agreement with Mr. Liam
Bussell, dated February 24,
2021 (the "Agreement"), pursuant to which Mr. Bussell
will, as Head of Corporate Communications of the Company, be
providing investor relations services to the Company for an
indeterminate term, subject to termination in certain events. In
accordance with the Agreement, the Company will pay Mr. Bussell an
annual salary of AUD$145,000 per annum (gross) plus superannuation
and has issued Mr. Bussell incentive stock options
("Options") to purchase up to 50,000 common shares
("Shares") of the Company for a period of 2 years.
Each Option is exercisable at an exercise price of CAD$2.15 per Share, and will vest quarterly over
a 24 month period.
The Company and Mr. Bussell are arm's length parties. The
Agreement and grant of the Options remain subject to the approval
of the TSX Venture Exchange.
ON BEHALF OF THE BOARD OF DIRECTORS
Per: "DOMENIC CAROSA"
Domenic Carosa
Chairman (1-888-218-6863)
About BANXA
BANXA - Banxa Holdings Inc.
(TSX-V:BNXA/OTCQX:BNXAF/FSE:AC00) is a Payment Service
Provider (PSP) with a mission to build the bridge between
traditional financial systems, regulation and the digital asset
space. Our goal is to onboard the general public to digital
currency by building a fully compliant payment infrastructure that
enables simple and secure conversion of fiat currency to digital
currency (eg. USD/CAD to BTC/ETH). Banxa has offices in
Australia, the Netherlands and Lithuania. For further information go
to www.banxa.com
This news release may contain "forward-looking statements"
within the meaning of applicable Canadian securities laws.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
management, are inherently subject to significant business,
economic and competitive uncertainties, and contingencies. These
statements generally can be identified by the use of
forward-looking words such as "may", "should", "will", "could",
"intend", "estimate", "plan", "anticipate", "expect", "believe" or
"continue", or the negative thereof or similar variations.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause future results,
performance or achievements to be materially different from the
estimated future results, performance or achievements expressed or
implied by those forward-looking statements and the forward-looking
statements are not guarantees of future performance. BANXA's
statements expressed or implied by these forward-looking statements
are subject to a number of risks, uncertainties, and conditions,
many of which are outside of BANXA's control, and undue reliance
should not be placed on such statements. Forward-looking statements
are qualified in their entirety by the inherent risks and
uncertainties of the Company's business, including: BANXA's
assumptions in making forward-looking statements may prove to be
incorrect; adverse market conditions, including risks related to
COVID-19 and risks that future results may vary from historical
results. Except as required by securities law, BANXA does not
assume any obligation to update or revise any forward-looking
statements, whether as a result of new information, events or
otherwise.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For Further Information, see www.banxa.com
SOURCE Banxa Holding Inc