[August 31, 2015] |
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Goldmoney Inc. Reports First Quarter Financial Results, Announces Special Meeting of Shareholders
GoldMoney Inc. (formerly BitGold Inc.) (the "Company" or "GoldMoney")
(TSX-V: XAU), a global, full-reserve and gold-based financial services
business, today announced its financial results for the first financial
quarter, ended June 30, 2015.
Management advises that results reflect a full quarter of operational
activity for the period ended June 30, 2015, but of which only includes
the first 56 days of business activity for the BitGold platform and
excludes business activity for the GoldMoney platform acquired on July 20th,
2015.
"The results highlight the strong growth in the BitGold platform since
our May 4th launch and an industry leading customer
acquisition cost. We estimate a $25 all-in customer acquisition cost for
the first 62,629 signups after adjusting for this quarter's non-cash and
non-recurring expenses associated with going public and the GoldMoney
acquisition. We expect this figure to remain stable for subsequent
quarters as we optimize our traffic acquisition strategy and benefit
from a larger mix of traffic due to the the viral adoption of the
platform. We also expect to see average deposit per user figures inching
higher over time, as can be seen in our key performance indicators
(KPIs) released at the end of every month. These are early days for our
company but the financial statements are an important confirmation of
the type of business model we have designed, one that generates
long-term recurring revenue fueled by variable-cost customer acquisition
strategy. Gross sales per customer of approximately $45.00 far outpaces
the all-in customer acquisition cost over 56 days of business activity,
and we believe gross revenues can follow as we expand engagement
features and optimize execution costs over the next 6 to 12 months as we
complete the platform core. Ultimately, we believe that the long-run
customer lifetime value will be far in excess of the customer
acquisition costs we are incurring with our long-term capital," said Roy
Sebag, GoldMoney CEO.
"We are pleased to present our first financial quarter as a public
company, results that reflect the investment we make in our users as we
prioritize long-term shareholder value. We are grateful for the
substantial capital and support afforded to us by shareholders to
achieve this mission, and we will continue to manage capital with
prudence, transparency and integrity," said Josh Crumb, Chief Strategy
Officer.
GoldMoney Inc. also announces that further to its acquisition of the
intellectual property and operating subsidiaries of GoldMoney Network
Limited announced July 20, 2015, the Company will hold a special meeting
of shareholders on September 29, 2015 to provide for the election of
directors, including GoldMoney Network Limited nominees Mahendra Naik,
James Turk, and Hector Fleming, and other corporate matters. Financial
results for the business acquired from GoldMoney Network Limited will be
consolidated and reported in the Company's financial statements
commencing for the second quarter ended September 30, 2015.
First Quarter Financial
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gold sales and transaction revenue of $2,856,937;
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total gross revenue gain of $13,396
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net loss from operations of $2,867,928;
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total comprehensive loss of $2,842,969;
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estimated adjusted loss of $1,535,410 after netting out non-cash share
payments, one-time public listing expenses and non-recurrng
professional fees associated with regulatory licensing and strategic
due diligence.
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basic and diluted loss per share of $0.08; and
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total cash and cash equivalents, gold inventory, short-term
investments and short-term marketable securities held for sale of
$28,204,924 (excluding cash and bullion acquired as part of the
GoldMoney transaction and reflecting only partial exercise of
outstanding in-the-money warrants)
Operational Highlights
During the first quarter, the Company completed its going-public
transaction by way of amalgamation, launched its BitGold platform on May
4, 2015, and extended its service to residents of the US and US
territories on Jun 26, 2015.
During the quarter, the Company acquired 62,629 users. As of June 30,
2015, customer gold in vaults, defined as total segregated and allocated
customer gold under safekeeping, totalled 63,555 grams ($2,993,400).
Total transaction volume, defined as deposits, redemptions and payments
on the BitGold platform, for the three months ended June 30, 2015
totalled 78,883 grams ($3,479,889).
This news release should be read in conjunction with GoldMoney's interim
financial statements and the accompanying notes as at and for the
quarter ended June 30, 2015, together with the related Management
Discussion and Analysis. Those documents have been filed with certain
securities regulatory authorities in Canada and are available under
GoldMoney's profile at www.sedar.com.
About GoldMoney Inc. (formerly BitGold Inc.)
GoldMoney Inc. is a global, full-reserve and gold-based financial
services business. GoldMoney provides financial services as a trusted,
limited third-party, combining the unique attributes of gold with
technology driven innovation. GoldMoney Inc. owns and operates two
client facing services through GoldMoney® and BitGoldTM.
Through GoldMoney® the company offers precious metals custody, trading
and execution, wealth management and research to individual investors
and institutions. Through BitGold™ the company operates a self-directed
savings platform and payments network allowing individuals and
businesses to make or receive online, in-store or mobile payments.
GoldMoney Inc. has over 250,000 customers from over 200 countries and
$1.5 billion in client assets under administration. GoldMoney is
regulated by the Jersey Financial Services Commission (JFSC) as a Money
Services Business. The JFSC is the main supervisory body that oversees
and regulates Jersey's large financial services industry. For more
information on BitGold, visit bitgold.com. For more information on
GoldMoney, visit ir.goldmoney.com.
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein. Neither
the TSX-V nor its Regulation Services Provider (as that term is defined
in the policies of the TSX-V) accepts responsibility for the adequacy of
this release.
Forward-Looking Statements
This news release contains certain "forward-looking information"
within the meaning of applicable Canadian securities laws that are based
on expectations, estimates and projections as at the date of this news
release. Any statements that involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions, future events or performance (often but not always using
phrases such as "expects", or "does not expect", "is expected",
"anticipates" or "does not anticipate", "plans", "budget", "scheduled",
"forecasts", "estimates", "believes" or "intends" or variations of such
words and phrases or stating that certain actions, events or results
"may" or "could", "would", "might" or "will" be taken to occur or be
achieved) are not statements of historical fact and may be forward
looking information and are intended to identify forward-looking
information. This forward-looking information is based on reasonable
assumptions and estimates of management of the Company at the time it
was made, and involves known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
of the Company to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
information. Such factors include, among others: risk factors relating
to the Company's limited operating history; future capital needs and
uncertainty of additional financing; the competitive nature of the
industry; unproven markets for the Company's product offering;
volatility of gold prices & public interest in gold investment; lack of
regulation and customer protection; the need for the Company to manage
its planned growth and expansion; the effects of product development and
need for continued technology change; protection of proprietary rights;
the effect of government regulation and compliance on the Company and
the industry; network security risks; the ability of the Company to
maintain properly working systems; foreign currency and gold trading
risks; use and storage of personal information and compliance with
privacy laws; use of the Company's services for improper or illegal
purposes; global economic and financial market conditions; uninsurable
risks; and those risks set out in the Company's public documents filed
on www.sedar.com.
Although the Company has attempted to identify important factors that
could cause actual results to differ materially, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to
be accurate as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking information. The Company
undertakes no obligation to revise or update any forward-looking
information other than as required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150831006270/en/
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