Clear Blue Technologies International Inc. (“
Clear
Blue” and the “
Company”) (TSXV: CBLU)
(FRA: 0YA) (OTCQB: CBUTF), the Smart Off-Grid™ Company, announces
its financial results for the quarter ended March 31, 2022
(“
Q1 2022”). A complete set of Financial
Statements and Management’s Discussion & Analysis
(“
MD&A”) has been filed at www.sedar.com. All
dollar amounts are denominated in Canadian dollars.
Key Financial Results
On a Trailing Four Quarter
(“TFQ”) basis:
- Revenue was $5,914,758, an 18%
decrease over the TFQ ending Q1 2021. Recall that Q1 2021 and Q4
2020 revenue benefited from large initial deployments with a
telecom infrastructure operator in Africa. Normalized for these
deployments TFQ revenue would have grown on a year-over-year
basis;
- Gross profit was $2,011,797 or 34%,
a 4% increase from the previous TFQ’s $1,941,028 or 27%;
- Non-IFRS
Adjusted EBITDA was $(2,998,255) versus $(3,103,830) for the
previous TFQ.
For Q1 2022:
- Revenues were $1,225,106, down 65%
versus Q1 2021 due to Q1 2021 having a large one-time order which
departs from the Company’s typical seasonality. Over a 5-year
trend, Q1 is usually the Company’s seasonally softest quarter,
representing 6-9% of total annual revenues. Q1 2022 was the
Company’s second highest Q1 ever (after Q1 2021), and based on
historical trends management believes Q1 2022 revenue is in line to
achieve fiscal 2022 revenue guidance of around $10 million;
- Bookings were $2,015,147 up 31%
from $1,536,118 as of December 31, 2021;
- Gross profit was $507,500 or 41%
compared to $751,163 or 22% for Q1 2021;
- Quarterly Non-IFRS Adjusted EBITDA
was $(851,890) versus $(416,969) in Q1 2021 resulting from lower
revenues and resulting increased travel and marketing expenses as
the Company’s sales activities have resumed in-person
meetings.
Management Commentary and
Outlook
Q1 2022 saw Clear Blue gain more traction with
its customers. The Company announced new partner and customer deals
with YahClick, GCES, and Viasat. New product announcements for
Illumient and the ground-breaking Pico-Grid product, were also met
with strong interest in the market.
“Q1 was a busy sales and marketing quarter,”
said Miriam Tuerk, Co-Founder & CEO of Clear Blue. “We
announced several new customers, partnerships and launched two new
products. At the same time, we witnessed a higher level of global
macroeconomic uncertainty, which is impacting supply chains and
enterprise buying behavior. While we have not lost any significant
contracts, certain large contracts we were expecting to close in Q1
2022 have transitioned into smaller, phased rollouts. We have also
undertaken an expense reduction program and allowed management and
certain employees to accept reduced cash compensation in exchange
for equity. These activities will bring the company to positive
EBITDA and cashflow sooner at a lower revenue threshold than
previously planned. Taking the current macro market pressures into
consideration, we are comfortable with revenue guidance of around
$10 million revenue for the next four quarters. Our sales funnel,
customer and project activities indicate continued and strong
demand for Clear Blue’s products, and with the closing of the
second tranche of our unit offering, we are well positioned to
execute on our opportunities.”
Second Tranche of Unit Offering
Completed for a Total of $1.64M Raised
Today, on May 30, the Company announces the
closing of the second tranche of a non-brokered unit offering (the
“Offering”) for gross proceeds of approximately
$653,443.
This second closing of the Offering resulted in
the issuance of 3,843,782 units of the Company (each, a
“Unit” and collectively the “Units”) at a price of
C$0.17 per Unit. Each Unit consists of one common share in the
capital of the Company (each, a “Common Share” and
collectively the “Common Shares”) and one common
share purchase warrant (each whole warrant, a
“Warrant” and collectively the
“Warrants”). Each Warrant entitles the holder
thereof to acquire one Common Share at a price of C$0.22 per Common
Share for a period of 24 months from the grant date.
Proceeds from the Offering are anticipated to be
used for sales, marketing, research and development, and working
capital requirements.
Tranche 1 of this Unit Offering was completed
and announced on April 29, 2022 for $989,834. Together the two
Tranches totaled $1,643,277.
All securities issued under both tranches of the
Offering are subject to a statutory hold period ending four months
and one day from the closing date of the first tranche. The
Offering remains subject to the final approval of the TSX Venture
Exchange.
Conference Call
The Company will host a conference call to
discuss its latest financial results at 11:00 AM Eastern Time
(Canada/U.S.) on Tuesday, May 31, 2022. Those interested can
register at:
https://us06web.zoom.us/webinar/register/WN_y6NeIbuNRvqRYBhvO-lLOQ
For more information, contact:
Miriam Tuerk, Co-Founder and CEO+1 416 433
3952investors@clearbluetechnologies.comwww.clearbluetechnologies.com/en/investors
Nikhil Thadani, Sophic Capital+1 437 836
9669Nik@SophicCapital.com
About Clear Blue Technologies International
Clear Blue Technologies International, the Smart Off-Grid™
company, was founded on a vision of delivering clean, managed,
“wireless power” to meet the global need for reliable, low-cost,
solar and hybrid power for lighting, telecom, security, Internet of
Things devices, and other mission-critical systems. Today, Clear
Blue has thousands of systems under management across 37 countries,
including the U.S. and Canada. (TSXV: CBLU) (FRA: 0YA) (OTCQB:
CBUTF)
Legal Disclaimer
Neither 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.
Forward-Looking Statement
This press release contains certain
"forward-looking information" and/or "forward-looking statements"
within the meaning of applicable securities laws. Such
forward-looking information and forward-looking statements are not
representative of historical facts or information or current
condition, but instead represent only Clear Blue’s beliefs
regarding future events, plans or objectives, many of which, by
their nature, are inherently uncertain and outside of Clear Blue's
control. Generally, such forward-looking information or
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or may contain
statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "will continue", "will occur"
or "will be achieved". The forward-looking information contained
herein may include, but is not limited to, information concerning
financial results and future upcoming contracts.
By identifying such information and statements
in this manner, Clear Blue is alerting the reader that such
information and statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Clear Blue to be
materially different from those expressed or implied by such
information and statements.
An investment in securities of Clear Blue is
speculative and subject to several risks including, without
limitation, the risks discussed under the heading "Risk Factors" in
Clear Blue's listing application dated July 12, 2018. Although
Clear Blue has attempted to identify important factors that could
cause actual results to differ materially from those contained in
the forward-looking information and forward-looking statements,
there may be other factors that cause results not to be as
anticipated, estimated or intended.
In connection with the forward-looking
information and forward-looking statements contained in this press
release, Clear Blue has made certain assumptions. Although Clear
Blue believes that the assumptions and factors used in preparing,
and the expectations contained in, the forward-looking information
and statements are reasonable, undue reliance should not be placed
on such information and statements, and no assurance or guarantee
can be given that such forward-looking information and statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such information
and statements. The forward-looking information and forward-looking
statements contained in this press release are made as of the date
of this press release. All subsequent written and oral forward-
looking information and statements attributable to Clear Blue or
persons acting on its behalf is expressly qualified in its entirety
by this notice.”
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
described in this news release. Such securities have not been, and
will not be, registered under the U.S. Securities Act, or any state
securities laws, and, accordingly, may not be offered or sold
within the United States, or to or for the account or benefit of
persons in the United States or “U.S. Persons”, as such term is
defined in Regulation S promulgated under the U.S. Securities Act,
unless registered under the U.S. Securities Act and applicable
state securities laws or pursuant to an exemption from such
registration requirements.
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