OLB Group Acquires
CBD Merchant Portfolio with Annual Transaction Volume Over $400
Million
-
Portfolio includes
over 1,500 merchants, which will provide OLB with a strong position
in a rapidly growing marketplace
-
Acquisition includes
new sales channel currently onboarding an average of 120 new
accounts a month
-
Based on historical
performance, deal expected to add approximately $20 million in
annual payment processing revenue, increasing total revenue 200%,
with an additional $5 million EBITDA projected
NEW YORK-- 01 December
2021 -- InvestorsHub
NewsWire -- The OLB Group,
Inc. (NASDAQ: OLB), a diversified fintech merchant services provider and Bitcoin mining
enterprise, today announced it has entered into a definitive
agreement to acquire a portfolio of cannabidiol (CBD)
merchants that will utilize the company's SecurePay Payment Gateway
to process payments. The acquired merchant portfolio has
demonstrated a historical annual transaction run rate where it is
anticipated to achieve an annual transaction volume of
approximately $400 million in 2022, providing OLB with a
significant foothold in the nearly $3 billion global CBD market
while adding an accomplished and experienced sales channel to the
OLB team. The OLB Group anticipates, based on the historical
performance of the group of merchant, an additional $20 million in
annual revenue and $5 million in earnings before interest, taxes,
depreciation, and amortization (EBITDA) for the company's payment
processing business. Terms of the transaction can be found in the
Company's SEC filing [https://www.sec.gov/ix?doc=/Archives/edgar/data/0001314196/000121390021062606/ea151441-8k_theolbgroup.htm
.
"OLB is very pleased to have
successfully closed this transaction resulting in this substantial addition to our
payment processing business in a market sector that has been
growing rapidly over the past several years. This portfolio
acquisition of successful merchants in a market that is forecasted
to continue its very healthy growth rate in both profitability and
revenue provides OLB with a new growth engine," said Ronny Yakov,
Chief Executive Officer of The OLB Group. "The revenue contribution
to our top line is anticipated to represent an increase of revenue
of approximately 200% percent in 2022 when compared to 2020
revenue."
According to a recent
market analysis by Grandview Research, the flourishing CBD market was valued at
approximately $2.8B in 2020 and is projected to increase at an
annual rate of 21.2% through 2028. This strategic acquisition
positions OLB to capitalize on the projected growth of the CBD
market, enabling further penetration into one of the fastest
growing sectors in the United States. By providing the merchant
portfolio with the proprietary and customizable "SecurePay" system,
OLB will be able to address many of the payment concerns relating
to the increase in activity in the CBD sector.
SecurePay provides an integrated
support platform for traditional card-based payments, major digital
wallets including Apple Pay® and Google Pay®, PayPal, and
cryptocurrency wallets. The cloud-based platform also includes
integrations with multiple back-office systems including QuickBooks
and other business software applications.
For merchants searching for a
comprehensive solution to simplify business processes and payment
acceptance at the point of sale (PoS,) OLB's OmniSoft Business
Management Platform offers merchants extended services including
PoS terminals, warehouse, inventory, and logistics support,
accounting and payroll, and customer relationship management.
Merchants interested in implementing omnicommerce services can set
up a SecurePay or OmniSoft account at https://cardaccept.com/#contact.
For more information about The OLB
Group, please visit www.olb.com
or www.olb.com/investors-data.
Future OLB Press
Releases and Updates
Interested investors or shareholders
can be notified of future Press Releases and Industry Updates by
e-mailing investorrelations@OLB.com.
About The OLB Group,
Inc.
The OLB Group, Inc. is a diversified
Fintech eCommerce merchant services provider and Bitcoin crypto
mining enterprise. The Company's eCommerce platform delivers
cloud-based merchant services for a comprehensive digital commerce
solution to over 9,500 merchants in all 50 states. DMint, a wholly
owned subsidiary of OLB Group, is engaged in the mining of Bitcoin
utilizing sustainable natural gas with an initial deployment of
efficient 1,000 ASIC-based S19j Pro 96T mining computers projected
by end of 2021. For more information about solutions, services, or
to find a reseller, please visit www.olb.com.
Investor information is available at www.olb.com/investors-data.
Safe Harbor
Statement
All statements from The OLB Group, Inc.
in this news release that are not based on historical fact are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and the provisions of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements include, but are not limited to,
statements concerning the impact of COVID-19 on our operations and
financial condition, our ability to enter into a definitive
agreement and consummate the proposed acquisition of the merchants,
the continuing growth of the CBD sector generally, the continued
sales and revenues of the merchants that are being acquired, our
ability to generate revenues and profits from the new merchants,
that the agreement, if entered into, will result in additional
business for our Omni Commerce and SecurePay applications. While
the Company's management has based any forward-looking statements
contained herein on its current expectations, the information on
which such expectations were based may change. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of risks,
uncertainties, and other factors, many of which are outside of our
control, that could cause actual results to materially differ from
such statements. Such risks, uncertainties, and other factors
include statements regarding the expected revenue and income for
operations to be generated by The OLB Group, Inc. For other factors
that may cause our actual results to differ from those that are
expected, see the information under the caption "Risk Factors" in
the Company's most recent Form 10-K and 10-Q filings, and
amendments thereto, as well as other public filings with the SEC
since such date. The Company operates in a rapidly changing and
competitive environment, and new risks may arise. Accordingly,
investors should not place any reliance on forward-looking
statements as a prediction of actual results. The Company disclaims
any intention to, and undertakes no obligation to, update or revise
any forward-looking statement.
Contacts
The OLB Group - Investor Relations
Rick Lutz
InvestorRelations@olb.com
(212)
278-0900 EXT: 333