Clip Money Inc. Reports Second Quarter 2023 Results and Announces Appointment of a new Board Chair and Issuance of Options

August 28, 2023

TORONTO, Aug. 28, 2023 (GLOBE NEWSWIRE) -- Clip Money Inc. (TSX-V: CLIP) (“Clip” 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 months ended June 30, 2023.

Clip’s commercial momentum accelerated in the second quarter of 2023, driven by new customers and the expansion of existing customers, which resulted in strong quarter over quarter growth. The second quarter demonstrated the migration of customers from pilot projects to expanded rollouts, which resulted in 136 additional retail stores during the quarter (+53% vs the first quarter of 2023) to bring the network total of depositing stores to 395. New customers from the second quarter will add over 400 incremental stores in the third quarter of 2023.

As depositing retailers rely upon the Clip network to lower operating costs, increase convenience, and accelerate store cash flow, Clip is experiencing additional tailwinds from the back to school shopping season that kicked off in July, specifically in locations in the South and Western U.S. Clip expects deposit volume and growth to remain vibrant through the third quarter, where it has seen triple digit deposit volume growth month on month.

Second Quarter 2023 Highlights

  • Clip customer highlights:
    • Lids, an enterprise retailer with over 1100 stores, commenced a rollout with Clip to over 300 stores within the current Clip network, and will grow as Clip’s serviceable network expands.
    • A North American apparel retailer with over 350 stores in North America has also started rolling out stores across the U.S. This retailer has received strong feedback from its employees who are no longer burdened with the daily visit to the bank branch.
    • Cherry Hill Productions, the industry leader in experiential photography, operates in hundreds of venues during the Christmas and Easter seasons, has expanded their partnership with Clip after two successful holiday photo seasons.
    • A North American fashion retailer with over 600 stores began testing Clip in Q2 at 4 stores. After this successful pilot, they are rolling out the deposit service to over 240 stores in Q3.
  • In the second quarter, Clip users performed over 9,600 deposit transactions totaling over $7.7M USD in Gross Deposit Value (“GDV”). GDV grew by 104% in the quarter and transactions increased by 108%.
  • The Company launched a new solution, Clip Change Order during the quarter. This solution provides businesses the critical mix of coin and notes required for daily commerce, mailed directly to the business’ front door. Clip Change Order utilizes a vertically integrated supply chain, supported and delivered through a leading payment and technology platform to transform how businesses receive cash. This convenient solution allows businesses to avoid the cumbersome trip to the bank branch while focusing on servicing customers in store. Clip will expand this solution to more clients in third quarter of 2023.
  • On June 14, 2023, the Company closed the second tranche (first tranche closed on May 4, 2023) of a non-brokered private placement of approximately 3,420 note units of the Company (each a “Note Unit”) at a price of CDN$1,000 per Note Unit for gross proceeds of approximately CAD$3,420,000 (the “Private Placement”). Each Note Unit consisted of one 12% unsecured convertible note with a principal amount of $1,000 (each a “Note”) and 1,000 common share purchase warrants of the Company (each, a “Warrant”). Together with the closing of the first tranche of the Private Placement announced on May 4, 2023, the closing of the second tranche has resulted in a total issuance of approximately 3903 Note Units for aggregate gross proceeds of approximately CDN$3,903,713.50. Certain insiders of the Company participated in the Private Placement for approximately 1,107 Note Units in the aggregate. Finder's fees of CDN$13,510 were paid in cash to parties at arm's length to the Company (the “Finders”). In addition, 13,510 non-transferable warrants were issued to the Finders (the “Finder Warrants”). The Finder Warrants are exercisable at a price of CDN$0.70 for a period of 36 months following the date hereof. Further details regarding the Private Placement and the terms of the Notes can be found in the Company’s press release dated June 14, 2023

“The second quarter marked a significant milestone for the Company by successfully transitioning major enterprise retail customers from pilot phases to full-scale implementations and launching our new Change Order solution. This further enhances and validates our strong value proposition and sets the stage for a user and volume surge, enabling accelerated growth in the third quarter and throughout the remainder of 2023.”

– Joe Arrage (CEO & Co-founder)

Appointment of new Board Chair

The Company is also pleased to announce that, effective immediately, Peter Dorsman has been appointed as the Chair of the Company’s board of directors. Peter will be assuming the role from the Company’s chief executive officer, Joseph Arrage. Peter brings considerable private and public company board experience to the Company, which will be instrumental as the Company continues to further its strategic plans.

Option Grants

The Company also announces the grant of 200,000 options to each of Peter Dorsman, Daren Trousdell, Jeff Gibson, and John Desmond as part of their annual 2023 remuneration for serving on the board of directors of the Company. All options have a twelve-month vesting period, an exercise price equal to CDN$0.25 and are governed by the terms of the Company’s omnibus equity incentive plan.

In addition to options granted to directors of the Company, the Company has also granted a total of 612,000 options to certain executives of the Company to recognize their strong performance over the course of the past year. Options have been granted as follows: (i) 463,000 options to Brian Bailey; (ii) 100,000 options to Roger Dalal; and (iii) 49,000 options to Andrew Tussing. All options have a three-year vesting period, an exercise price equal to CDN$0.25 and are governed by the terms of the Company’s omnibus equity incentive plan.

Additional Information

The Company’s interim condensed consolidated financial statements, notes to financial statements, and management’s discussion and analysis for the three and six month periods ended June 30, 2023 are available on the Company’s SEDAR profile at Unless otherwise indicated, all references to “$” in this press release refer to Canadian dollars.

ForwardLooking Statements

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 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 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

For further information, please contact:

Joseph Arrage
Chief Executive Officer
tel: 844-593-2547