MOBI724 Global Solutions Announces Q4 and Fiscal Year 2017 Results - Increase in Revenues in 2017, With Revenues Up 51% in th...
May 02 2018 - 9:09AM
MOBI724 Global Solutions Inc. (“MOBI724” or the “Company”)
(TSX-V:MOS) (OTCQB:MOBIF), a Fintech leader offering all in one
fully integrated EMV payment, Card-Linked Offers, Digital Marketing
and Business Intelligence Solutions, today reported its financial
results for FY 2017 ending December 31, 2017.
FY 2017 was a significant year for MOBI724 in
many areas including the start of commercialization of the
important Visa partnership, new sales contracts and a substantial
increase in the sales pipeline.
MOBI724 announced that sales increased 29% in Q4
2017 vs. Q3 2017: $814.7K in revenues for the 3 months ended
December 31, 2017 compared with $630.9K for Q3 2017. For the twelve
months ended December 31, 2017 revenues increased 13% to $2.87
million from $2.55 million in the same period last year. In the
important card linked offers vertical, revenue grew 51% to $729K.
Card Linked Offers is our line of business where we expect
significant growth, as the Visa Offers partnership began commercial
rollout in late-2017 and is anticipated to start recording material
transactional revenue by mid-year 2018.
In addition, sales and markets are growing:
- Shortening of the sales cycle from 15 months to approximately
12 months due to substantial investment in advancing sales
relationships;
- Entered new markets in Colombia and the Philippines, and
expanded in Argentina;
- Expanding cards under management.
The Company incurred an operating loss of $7.7
million for the 12 months ended December 31, 2017 vs. a loss of
$3.7 million in 2016. Of this loss, approximately $2.7 million are
non-cash charges relating mainly to amortization and share-based
compensation. Though revenues increased period over period, this
increase was more than offset by increased operating expenses
related to higher labour costs, and increased costs for business
development, travel and marketing activities.
The higher net loss at $10.8 million for 2017
vs. $4.9 million in 2016 is related to the increase in the
operating loss and higher non-cash accounting charges of $4.6
million primarily associated with the increase in fair value
adjustment on liability for the acquisition of Mobi724 Solutions
Inc.
The Company continues to seek opportunities to
enhance efficiencies to reduce costs and improve cash flow going
forward.
The Company ended 2017 with $3.7 million of
cash. This amount does not include cash of $930K from the April
2018 Warrant Incentive Program.
Marcel Vienneau, MOBI724’s CEO, said, “In 2017,
MOBI724 made strategic decisions that will promote success for
years to come. We invested considerable resources in terms of time,
staffing and capital that will demonstrate accelerating returns in
2018. With the increasing activity generated by our Visa
partnership and other important relationships, we characterize 2018
as our first year of full commercialization.”
The Company also announces that on April 26th,
2018, it granted 60,000 stock options under its stock option plan
(the “Plan”) to two employees and 180,000 stock options to the CFO.
All stock options will vest gradually over a period of three years
(the first 1/3 vesting on the granting date, 1/3 twelve months
after the granting date and the balance, twenty-four months from
the granting date), and will allow the holder of the stock option
to acquire one common share of the Company per option granted at a
price of $0.35 until April 26th, 2021. The Company has reserved the
aggregate total of 240,000 common shares for issuance in connection
with the grant of stock options under the Plan.
About Mobi724 Global Solutions
Inc.“We enable smart transactions anywhere”
MOBI724, a global Fintech company, offers a
fully integrated suite of multiple Payment Card-linked, Digital
Marketing and Business Intelligence Solutions, which work with any
payment card, on any mobile device and at any Point of Sale; and a
mobile EMV compliant payment platform. MOBI724 provides turn-key
solutions for card associations, card issuers, banks, retailers,
manufacturers, offer providers, to create, manage, deliver and
track and measure incentive campaigns worldwide in real time. The
company captures value from big data to deliver seamless and
personalized user experiences for the benefits of all parties in
the ecosystem. MOBI724 headquarters are in Montreal, Canada, and
the company presently has operations in North and Latin America,
the Caribbean and Asia Pacific.
Legal Disclaimer
Certain statements in this document, including
those which express management’s expectations or estimations with
regard to the Company’s future performance, constitute
“forward-looking statements” as understood by applicable securities
laws. Forward-looking statements are, of necessity, based on a
certain number of estimates and hypotheses; while management
considers these to be accurate at the time they are expressed, they
are inherently subject to significant uncertainties and risks on
the commercial, economic and competitive levels. We advise readers
that these forward-looking statements are subject to risks,
uncertainties, and other known and unknown factors that 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 in these forward-looking
statements. Investors are advised to not rely unduly on the
forward-looking statements. This advisory applies to all
forward-looking statements, whether expressed orally or in writing,
attributed to the Company or to any individual expressing them in
the name of the Company. Unless required by law, the Company is
under no obligation to publicly update these forward-looking
statements, whether to reflect new information, future events, or
other circumstances.
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. This news release does not constitute a
solicitation to buy or sell any securities in the United
States.
For further information, please visit
www.MOBI724.com or contact:
Investor Relations:Mr. Andreas
CurkovicProconsul Capital Ltd.T: 416-577-9927; E:
andreascurkovic@sympatico.ca
Mr. Derek LindsayMOBI724 Global Solutions
Inc.Chief Financial OfficerT: 514-394-5200; E:
derek.lindsay@mobi724.com
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