MOBI724 Global Solutions Inc. (“MOBI724” or the “Company”)
(TSX-V:MOS) (OTCQB:MOBIF), a global Fintech company offering a
fully integrated suite of multiple EMV payment Card-Linked, Digital
Marketing and Business Intelligence Solutions today reported its
financial results for Q1 2018 ending March 31, 2018.
Q1 2018 was a significant quarter for MOBI724 in
many areas including the first Visa Offers Platform (VOP) agreement
with a bank in Latin America, launch of the commercial payment
processing business in the Philippines, and substantial growth in
the sales pipeline for all three business segments: Card Linked
Offers (CLO), Digital Marketing (DM) and Payments.
After quarter end, the Company welcomed Sylvain
Tassé, a leading technology executive as Chief Operating Officer to
its management team to accelerate growth and revenues.
Sylvain’s focus will be to increase revenues, optimize and expedite
product implementation once contracts are signed, and oversee the
launch of new products as well as the implementation of new
ventures. Sylvain will ensure the Company drives revenues
quickly from sales while ensuring superior delivery of our multiple
products.
The sales pipeline continues to grow in new and
existing markets:
- Shortening of the sales cycle from 15 months to approximately
12 months due to substantial investment in advancing sales
relationships;
- Entered new markets in Panama and the Philippines;
- 50% growth in cards under management to 12M at the end of Q1 vs
8M at the end of 2017.
MOBI724 announced that revenues for the three
months ended March 31, 2018 decreased 20% to $519,907 from $646,393
in Q1 2017. The decrease was expected and previously
disclosed, and was related primarily to lower revenues in the
digital marketing segment due to delays in the launch of certain
projects and lower activity from existing clients which is expected
to pick up in the second half of 2018.
Operating expenses decreased by 9% in Q1 2018 to
$2.18 million compared to $2.39 million in Q1 2017. The decrease is
due to lower contract labour expenses, lower expenses for
amortization and share based payments, and a gain on settlement of
liabilities (vs. a loss in 2017) partially offset by an increase in
salaries expense.
The Company reduced by 5% its operating loss to
$1.66 million in Q1 2018 vs. an operating loss of $1.75 million in
the prior quarter as reduced expenses more than offset lower
revenues.
Net loss decreased 78% to $1.6 million in Q1
2018 vs. a net loss of $7.4 million in Q1 2017. The
lower net loss is primarily related to sharply lower net financial
expenses in Q1 2018 as Q1 2017 contained a significant one time,
non-cash charge for the fair value adjustment on liability for the
acquisition of Mobi724 Solutions, which is absent in Q1
2018.
The Company continues to vigorously seek
opportunities to enhance efficiencies to reduce costs and improve
cash flow going forward.
The Company ended March 31, 2018 with $2.1
million of cash. This amount does not include cash of
$930K from the April 2018 Warrant Incentive Program and $536K
received in early May from the settlement of litigation. Including
these two amounts, cash at the beginning of May was $3.1
million.
Marcel Vienneau, MOBI724’s CEO, said, “In Q1
2018, MOBI724 made significant progress in commercializing its
business by closing its first VOP deal and launching commercial
operations in the Philippines. Equally important, we made
significant strides to develop our sales pipeline for all 3
business segments that will lead to sales contracts in the coming
weeks and months. The addition of an experienced COO will
greatly help MOBI724 to increase sales, expedite product
implementation once contracts are signed, and oversee the launch of
new products as well as the implementation of new
ventures. With the increasing activity generated by our
Visa partnership and other initiatives, we characterize 2018 as our
first year of full commercialization. We expect that in the
second half of 2018 MOBI724 will show substantially more growth
than ever before.
The Company announces that on May 28th, 2018, it
granted to 225,000 stock options to employees
and 150,000 stock options to an officer for an
aggregate total of 375,000 stock options under its stock
option plan (the “Plan”). 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 May 28th,
2021. The Company has reserved the aggregate total
of 375,000 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 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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