OLB Group Acquires CBD Merchant Portfolio with Annual Transaction Volume Over $400 Million
December 01 2021 - 10:00AM
Business Wire
- 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
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 merchants, 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211201005364/en/
The OLB Group - Investor Relations Rick Lutz
InvestorRelations@olb.com (212) 278-0900 EXT: 333
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