TORONTO, Aug. 27, 2019 /CNW/ - Globalive Technology
(TSX-V: LIVE) (the "Company"), a technology and software
commercialization firm developing and investing in innovative
solutions to disrupt traditional industries, including retail
consumer finance, today announced its financial and operational
results for the second quarter of 2019 (the "Financial
Period").
For a summary of the financial results, see the Selected Q2
Financial Highlights set out below as well as more detailed
information contained in the Company's interim financial statements
and related management discussion and analysis quarterly highlights
which are available on the Company's SEDAR page at
www.sedar.com.
SELECTED Q2 OPERATIONAL HIGHLIGHTS
Key operational developments for the Company in the second
quarter of 2019 included:
- Interest in FLX Holding Corp. / Flexiti Financial
Inc.: On January 9, 2019 and
February 20, 2019, the Company
announced it is exercising its call right to acquire 2629331
Ontario Inc. ("262 Ontario"), the
controlling shareholder of FLX Holding Corp. ("FLX"), the parent
company of Flexiti, under a previously disclosed put, call and
right of first refusal agreement dated June
21, 2018. The exercise of the call right is subject to
certain conditions precedent, including the Company's satisfaction
that adequate financing can be obtained to fund FLX and Flexiti.
There can be no assurance at this time that a transaction will be
completed.
- Consolidated Billing Platform (Sponsor): The
Company has been engaged with its business partner, Sponsor Energy
Inc. ("Sponsor"), in developing a utility commerce management
platform that bundles the billing for utility services and other
similar household bills into a single consolidated invoicing and
payment regime for Neighbor Billing Inc. ("Neighbor"). On
June 4, 2019, the Company completed a
transaction to sever its relationship with Sponsor, with the result
that the Company is now the sole owner of Neighbor and its
associated intellectual property, but has granted limited licenses
to Sponsor to allow it to use certain of the intellectual property
for a business in the utilities market.
- Blockchain/Cryptocurrency Business Ventures: The
Company continues to wind-down its business ventures in the
blockchain and cryptocurrency space, including its former business
ventures with HyperBlock Inc. and Business Instincts Group Inc.
- Investments: The Company has made and
continues to make strategic investments in existing and potential
future collaborators and other strategic partners. During the
Financial Period the Company allocated a small amount of capital
into Xtreme Blockchain Labs Inc. and PitchPoint Solutions Inc.
After the Financial Period the Company also made a capital
allocation in Civic Resources Group Inc.
SELECTED Q2 FINANCIAL HIGHLIGHTS
Key financial characteristics of the Company for its four most
recently completed quarters were:
|
June 30,
2019
|
March 31,
2019
|
Dec 31,
2018
|
Sept 30,
2018
|
|
Cash
|
7,080,097
|
8,393,157
|
13,436,845
|
23,816,933
|
|
Working
capital*
|
6,817,234
|
8,924,056
|
13,546,228
|
25,368,757
|
|
Total
Assets
|
24,857,659
|
36,098,955
|
38,311,011
|
46,110,725
|
|
Total
Liabilities
|
(344,712)
|
(652,311)
|
(1,046,334)
|
(381,077)
|
|
Change in
unrealized gain (loss) from investments
|
(8,768,873)
|
(163,688)
|
(921,536)
|
(1,797,444)
|
|
Net income (loss)
before taxes for the period
|
(11,060,081)
|
(1,708,286)
|
(9,630,988)
|
(4,861,959)
|
|
Deferred tax
recovery (expense)
|
–
|
–
|
–
|
--
|
|
Net income (loss)
from continuing operations for the
period
|
(11,060,081)
|
(1,708,286)
|
(9,630,988)
|
(4,861,959)
|
|
Net income (loss)
from discontinued operations for
the period
|
4,855
|
(490,100)
|
–
|
–
|
|
Net comprehensive
income (loss) for the period
|
(11,055,226)
|
(2,198,386)
|
(9,630,988)
|
(4,861,959)
|
|
|
* Note that "working
capital" does not have any standardized meaning prescribed by IFRS
and may not be comparable to similar measures presented by other
companies. Working capital consists of current assets minus current
investments minus current liabilities plus promissory notes.
Working capital excludes any digital assets and investments. For a
more detailed explanation of management's approach to working
capital and the risks and uncertainties of using this financial
measure to evaluate the Company's performance, please see the
Company's filing statement dated May 29, 2018.
|
The Company's losses for the most recently completed quarter
were driven primarily by a $9,411,669
write-down of the secured debentures which the Company holds in 262
Ontario, the controlling shareholder of FLX and Flexiti, and (ii) a
$666,553 write-down of the fair
market value of certain other debt and equity investments held by
the Company. Please refer to the Company's interim financial
statements and corresponding management discussion and analysis for
further detail.
ABOUT GLOBALIVE TECHNOLOGY
Globalive Technology is a next generation software company and
venture partner that is developing and investing in innovative
solutions to disrupt traditional industries, with a particular
focus on the retail consumer finance industry. The company forms
partnerships with leading high growth companies to develop and
commercialize software solutions using optimal technology stacks.
It is controlled by Globalive Capital Inc., which has founded and
co-founded 12 businesses over the past 20 years with six successful
exits ranging from $10M to
$1.3B USD, has made over 100 venture
investments and has over 45 technology companies in its portfolio.
For more information, visit www.globalivetech.com.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements
relating to the Company and its business ventures. Such
forward-looking statements are identified by terms such as "will",
"can be", and "subject to" and similar expressions. All statements,
other than statements of historical fact included in this release,
including those noted above, are forward-looking statements that
involve risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results
to differ materially from the Company's expectations include
a breakdown in the Company's relationship with its strategic and
transactional partners, difficulties or delays in raising the
necessary financing to complete a transaction, an inability to
satisfy the conditions precedent to a transaction, economic
conditions affecting the Company or its transaction partners, the
inability to negotiate exclusivity for a possible transaction,
competition from third parties with an interest in working with the
Company's transaction partners, a transaction not resulting in the
expected economic or other benefits for the Company, difficulties
or delays in negotiating or consummating a transaction, changes to
the value of the assets underlying the Company's secured loans,
changes to the Company's strategic plan and other risks as set out
in the Company's filing statement dated May
29, 2018 available on its SEDAR page at
www.sedar.com.
The reader is cautioned that assumptions used in the
preparation of any forward-looking information may prove to be
incorrect. Events or circumstances may cause actual results to
differ materially from those predicted as a result of numerous
known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of the Company. The Company cannot
guarantee that any of the forward-looking statements contained in
this press release will occur as disclosed herein or at all. The
reader is cautioned not to place undue reliance on any
forward-looking information.
Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made
as of the date of this news release and the Company will only
update or revise publicly the included forward-looking statements
as expressly required by Canadian securities law.
FOR FURTHER INFORMATION, PLEASE CONTACT:
For media inquiries:
Rob
Moysey
Communications Manager, Globalive
Media@globalivetech.com
For investor
inquiries:
InvestorRelations@globalivetech.com
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
SOURCE Globalive Technology
