TORONTO, ON / ACCESSWIRE / December 22, 2022 / BANXA Holdings Inc. (TSX-V:BNXA)(OTCQX:BNXAF)(FSE:AC00) ("Banxa" or "The Company"), the leading global web3 on/off ramp solution, provides a further update on the trade cessation status and general business matters.
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The Company continues to make progress with its auditor, RSM Canada, on completing its audited financial statements for the fiscal year ended June 30, 2022. Due to the nature of Banxa's industry, combined with the material growth of the fiscal year to be reported, all parties have sought extra assurances that reporting is in-line with current accounting standards. The Company anticipates the audit being completed in the new year and will provide shareholders with a further update in due course.
The Company has now been granted 12 USA Money Transmitter Licence (MTLs).
The Company is also pleased to report that it successfully signed and executed over 30 paid integrations and token listing fees in the period October 2022 to December 2022, resulting in an additional AUD$500,000 in gross profit margin contribution. After the successful pilot of this additional revenue stream, the Banxa team is working hard to scale this revenue stream which is above and beyond the existing commission/spread revenue stream the Company currently generates.
The Company's day-to-day business operations continue to operate soundly and are making headway in the execution of its strategic plan, particularly concerning sales and product development.
Working Capital facility
Total Transaction Value (TTV) has been steadily increasing since the middle of calendar 2022 and there is a requirement for increased working capital to fund the T+2 to T+5 settlements over the coming holiday period. The Company's subsidiary, BTC Corporation Pty Ltd. ("BTC"), entered into an unsecured loan agreement with TIGA Trading Pty Ltd. ("Thorney") pursuant to which Thorney will provide BTC with a revolving credit facility in the principal sum of up to AUD$2 million, the credit facility with Thorney accrues interest at the rate of 19.99% per annum (calculated daily) and the loan matures on April 20, 2023. The company will issue Thorney 100,000 3-year warrants with a strike price of CAD$1 as part of the loan facility.
CONTACTS
Investors:
MZ North America
Brian M. Prenoveau, CFA
BNXA@mzgroup.us
561-489-5315
Media:
Wachsman
Ethan Lyle
banxa@wachsman.com
ENDS
ON BEHALF OF THE BOARD OF DIRECTORS
Per: "DOMENIC CAROSA" https://twitter.com/dcarosa
Domenic Carosa = Chairman (1-888-218-6863)
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward-looking Information and Statements
This news release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends", "expects" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or will "potentially" or "likely" occur. This information and these statements, referred to herein as "forward-looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding the completion of the Audit by RSM, and the filing of the Annual Filings by the Company.
These forward-looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, risks related to the completion of the Audit by RSM within the timeframe expected by management, and risks relating to the filing of the Annual Filings within the timeframe expected by management, and risks related to changes in general economic, business and political conditions, including changes in the financial markets, changes in applicable laws, and compliance with extensive government regulation, as well as those risk factors discussed or referred to in the Company's disclosure documents filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.
In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, assumptions regarding the completion of the Audit by RSM in a timely manner and the filing of the Annual Filings by the Company in a timely manner.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, 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 statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbour.
SOURCE: Banxa Holdings
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