Clip Money Inc. Reports Second Quarter 2022 Results and Announces Option Grants
TORONTO, Aug. 29, 2022 (GLOBE NEWSWIRE) -- Clip Money Inc. (TSX-V: CLIP) (“Clip Money” or the “Company”), a company that operates a multi-bank self-service deposit system for businesses, is pleased to announce its financial results for the three and six months ended June 30, 2022.
Second Quarter 2022 Business Highlights
- Q2 saw the largest expansion of ClipDrop Box installations with 169 units installed across premier mall and retail locations in the U.S. In addition, Clip realized three additional shopping mall partnerships to further expand distribution.
- User adoption and transaction volumes continue to steadily climb. Total transactions were up 88% in Q2 2022, compared to Q1 2022. In addition, customer feedback (from internal and external surveys) has been extremely positive, evidenced by a customer retention rate of 100%.
- June 14th announcement of a transformative distribution and marketing partnership with Staples US Retail (“Staples”), a leading US retailer providing innovative products, services, and inspiration essential to the new ways of working and learning. The partnership will initially see 31 ClipDrop Box solutions deployed within Staples stores in Massachusetts (26), Rhode Island (2), New Hampshire (1), and the newly reimagined Staples Connect stores in Los Angeles, CA and Auburn, Maine. Clip Money will also be deploying additional boxes in the New York Metro and North Carolina markets beginning in Q3’22.
- The Clip Money network officially went live in the United States in July, accepting business deposits at ClipDrop Box locations across the U.S.
“The US launch for our ClipDrop Box product was a key milestone. We are looking forward to building on our momentum from Q2 on both transaction volumes (+88% increase over Q1) and additional locations in key U.S. markets. Our world class team will continue to execute our strategy which will scale our transaction volumes and revenues into the upcoming quarters.”
- Joe Arrage (CEO & Co-founder)
Second Quarter 2022 Corporate Highlights
- On May 13, 2022, Clip Money closed a private placement of subscription receipts (the “Subscription Receipts”) of Clip Money at a price of $1.00 per Subscription Receipt for aggregate gross proceeds of approximately $8,090,425, which included a lead order from Glory Ltd., for $3,000,000.
- On May 20, 2022, the Company completed a “reverse takeover” (the “RTO”) of 13842053 Canada Corp. (“138”). In furtherance of the RTO, the Company and 138 amalgamated under the federal laws of Canada pursuant to an amalgamation agreement dated May 20, 2022 (the “Amalgamation Agreement”). The amalgamated entity continued under the name “Clip Money Inc.”
- In connection with the closing of the Amalgamation, Clip Money appointed two new independent directors, John Desmond and Peter Dorsman, to serve on the Company’s board of directors.
- The Company’s common shares commenced trading on the TSX Venture Exchange on May 26, 2022.
In addition, the Company announced that it has granted an aggregate of 1,531,350 options (the “Options”) to acquire Clip Money common shares (the “Common Shares”) to certain board members, executive officers, senior employees and consultants of the Company under the terms of the Company’s omnibus equity incentive plan (the “Plan”). In addition, the company granted an aggregate of 650,000 restricted share unites (“RSUs") to certain executive officers of the Company under the Plan. The foregoing grants were made in connection with efforts on the Company’s recently completed go-public transaction.
The Options were granted at an exercise price of $1.00 and expire 10 years from the date of grant. 25% of the Options vest 1 year from the date of grant, with the remaining balance to vest in equal increments over the following 12 months, other than the Options granted to certain executive officers of the Company, which fully vest as of the date of grant. Each RSU entitles the holder to acquire one Common Share or cash payment equal to the equivalent of one Common Share on vesting. The RSUs vest one-third on June 7, 2023, one third on June 7, 2024 and one third on June 7, 2025.
The Company’s interim condensed consolidated financial statements, notes to financial statements, and management’s discussion and analysis for the three and six months ended June 30, 2022 are available on the Company’s SEDAR profile at www.sedar.com. Unless otherwise indicated, all references to “$” in this press release refer to Canadian dollars.
This news release may contain forward‐looking statements (within the meaning of applicable securities laws) which reflect the Company's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the future success of the Company's business.
The forward-looking statements in this news release are based on certain assumptions. The forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
About Clip Money Inc.
Clip Money operates a multi-bank self-service deposit system for businesses through its ClipDrop Boxes that gives users the capability of making deposits outside of their bank branch at top retailers and shopping malls. Rather than having to go to their personal bank branch or using a cash pickup service, businesses can deposit their cash at any ClipDrop Box located near them. After being deposited, the funds will automatically be credited to the business’ bank account, usually within one business day. The Company combines functional hardware, an intuitive mobile app and an innovative cloud-based transaction engine that maximizes business banking transactions. Combined with mobile user applications, Clip Money offers a cost-effective and convenient solution for business banking deposits in metropolitan statistical areas across Canada and the United States. For more information about the Company, visit www.clipmoney.com.
For further information, please contact:
Chief Executive Officer