MONTREAL, May 01, 2018 (GLOBE NEWSWIRE) -- 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 Curkovic
Proconsul Capital Ltd.
T: 416-577-9927; E: andreascurkovic@sympatico.ca
Mr. Derek Lindsay
MOBI724 Global Solutions Inc.
Chief Financial Officer
T: 514-394-5200; E: derek.lindsay@mobi724.com