News Press Releases

MineHub Achieves Record Revenue in First Quarter

V.MHUB | June 29, 2023

Management provides a positive outlook based on an expanded sales pipeline and larger market opportunity with the combination of MineHub and Waybridge in the first quarter.

Vancouver, British Columbia--(Newsfile Corp. - June 29, 2023) - MineHub Technologies Inc. (TSXV: MHUB) (OTCQB: MHUBF) ("MineHub" or the "Company") the digital supply-chain platform for commodities, is pleased to announce it has filed its condensed interim consolidated financial statements (the "Interim Financial Statements'') and management's discussion and analysis (the "MD&A") for the Q1 - Fiscal 2024, representing the three months ended April 30, 2023. Copies of the Interim Financial Statements and MD&A are available on the Company's profile on SEDAR at www.sedar.com.

Arnoud Star Busmann, CEO at MineHub, comments, "Q1 was a transformational quarter for MineHub in which we completed the combination of MineHub and Waybridge to create the leading global digital platform for commodity supply chains. This highly accretive transaction immediately increased our user base to more than 100 companies and has had a positive impact on the Company's revenue, which is evident in the first quarter financial results. We expect cost synergies through the acquisition of Waybridge which will reduce the Company's timeline to anticipated profitability. In addition, we recently strengthened our balance sheet with approximately $3 million of capital investment in the Company coming from $1 million from the first tranche of private placement in Q1, followed by $1 million from the second tranche and approximately $1 million from Sumitomo Corporation following the end of the quarter."

Andrea Aranguren, President of MineHub, further adds, "We are at an inflection point having witnessed revenue growth driven by the combination of MineHub and Waybridge, groundbreaking technology platforms, and increasing customer traction. As we embark on a new phase of our journey, we remain committed to leveraging our combined strengths, signing new customers, improving profitability, and investing in research and development. Our focus on growth, innovation, and customer value will propel us forward as the market leader in digitizing commodity supply chains."

First Quarter Financial and Business Highlights:

MineHub achieved quarterly revenue of $341,636 during Q1, compared to zero revenue generated in the same period of 2022. Revenue growth was primarily driven by the addition of SaaS revenue from Waybridge customers and project revenue related to the roll-out of the MineHub platform and enterprise applications into its customers operations and business networks.
On March 10, 2023, the Company announced the completed acquisition of certain operational assets, intellectual property, contracts and accounts receivable of Waybridge Technologies Inc. ("Waybridge") for which 8,176,634 common shares were issued as consideration. Waybridge's ground breaking SaaS platform provides seamless order processing, real-time shipment tracking, inventory management and reporting for the commodities ecosystem. Waybridge has over 90 customers who manage more than $7 billion in raw materials.
On March 23, 2023, the Company announced that Codelco, the largest copper producer in the world, had selected the Waybridge Platform as Codelco's Global Commercial Platform, following a Request for Proposal (RFP) and successful pilot. Codelco will utilize the Waybridge Platform to digitize 100% of its global refined copper business and lead the industry towards more efficient, reliable, and sustainable trading.
On April 14, 2023, the Company closed the first tranche of its non-brokered private placement for gross proceeds of approximately $1m. The first tranche of the Private Placement consisted of 4,075,000 units at a price of $0.25 per unit. Each unit is comprised of one common share of the Company and one-half of one transferable common share purchase warrant exercisable at $0.40 for three years.

Events Subsequent to April 30, 2023:

On May 16, 2023, the Company announced the appointment of Andrea Aranguren as the Company's President and Chief Operating Officer. She was previously co-founder and the Chief Customer Officer at Waybridge, where she led customer implementations, counterparty onboarding and ecosystem partnerships for Waybridge's global customer base, including the largest copper and aluminum manufacturers in the U.S. and the largest copper producer in the world. Mrs. Aranguren also served as Vice President, Metals Logistics at Goldman Sachs & Co., where she was responsible for the scheduling and inventory management for the North and South American physical base metals business (including copper, lead and aluminum).

On June 9, 2023, the Company closed the second tranche of its non-brokered private placement for total gross proceeds of $1 million. The second tranche consisted of 5,000,000 units at a price of $0.20 per unit. Each unit is comprised of one common share and one-half of one transferable common share purchase warrant exercisable at $0.40 for two years.

On June 20, 2023, the Company announce that Sumitomo Corporation had provided MineHub approximately $1 million in capital contribution towards accelerating their joint goal of digitization of the metal concentrates market by promoting the adoption of the MineHub platform and its Concentrates Application as the emerging industry standard for the settlement of concentrates transactions.

Outlook:

MineHub has a robust sales pipeline and demand for MineHub's products has increased since the acquisition of Waybridge. The Company has not felt any material impacts thus far due to recession, inflation, or other macroeconomic effects. Management remains optimistic about the Company's growth prospects, and is pleased to share MineHub's key goals:

Leverage the combined strengths of MineHub and Waybridge to further accelerate the Company's growth, improve margins and increase long term customer value.

Increase Annual Recurring Revenue ("ARR")1 by signing customers from the Company's sales pipeline.

Improve profitability with cost containment strategies while increasing revenue and cash flow.

Continue to invest in Research and Development to integrate the MineHub and Waybridge technology platforms.

Management anticipates projected Annual Recurring Revenue ("ARR")1 of CAD $2 Million and an acceleration of user growth and ARR throughout 2023, reflecting MineHub's market-leading position among digitized commodity supply chains. MineHub expects that by the end of 2023, approximately 130 companies will be enrolled on its platforms, servicing the copper, aluminum and steel markets.

About MineHub

MineHub provides enterprise-grade digital solutions that connect buyers, sellers and financiers within physical commodities supply chains in a digitally integrated workflow powered by data that is useable, shareable, verifiable and unforgeable. Users of MineHub solutions are in full control of their supply chains, enabling them to optimize their use of resources, respond better and faster to disruptions, and provide a better customer service. Global enterprises already use MineHub solutions as part of their logistics, compliance, trade management and financing operations

Arnoud Star Busmann
CEO, MineHub Technologies Inc.

For further information regarding MineHub, please email info@Minehub.com or visit our website at www.minehub.com.

Cautionary Note Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains statements that are considered "forward-looking information" within the meaning of applicable Canadian securities legislation ("forward-looking statements") with respect to MineHub including, but not limited to, statements with respect to MineHub's future operational plans, the timing of such plans, anticipated customers and demand for its products and anticipated revenue growth. Forward-looking statements are statements that are not historical facts are generally, but not always, identi?ed by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although MineHub believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to, the Company's ability to raise su?cient capital to fund its operations, applications and for general working capital purposes, changes in economic conditions or ?nancial markets, changes in laws or regulations that could have an impact on the Company's operations, dependence on its key management personnel and market competition. Other risk factors are identified in the Company's management discussion and analysis, available on the Company's SEDAR profile at www.sedar.com. There may be other risk factors not presently known that management believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. Although the Company has attempted to identify risk factors that could cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Also, many of the factors are beyond the control of the Company. Accordingly, readers should not place undue reliance on forward-looking statements or information. The forward-looking information is made as of the date included herein, and the Company assumes no obligation to publicly update or revise such forward-looking information. Forward-looking statements are based on the reasonable beliefs, estimates and opinions of MineHub's management on the date the statements are made. However, except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors should change. We believe the expectations and assumptions made regarding ARR are reasonable and appropriate in the circumstances based on information presently available. Reliance should not be placed on forward-looking statements as we cannot provide assurance they will prove to be correct. Projected ARR at the end of 2023 assumes additional customer acquisitions and retention of active customers. The number of expected enrolled companies by the end of 2023 assumes successful onboarding of acquired customer counterparties from Waybridge. An update of projected ARR and enrolled companies would be provided should the projection change materially, in accordance with applicable securities laws. A significant amount of ARR is denominated in United States dollars (and not the Canadian Dollar). As a result, movements in exchange rates will have an impact on ARR.

1 ARR is a Key Performance Indicator for the Company. We consider ARR a key indicator of future recurring revenues and the trajectory of the business. ARR includes annualized revenue of all active SaaS platform revenue as of a specified point in time and assumes all active contracts are renewed on existing terms. ARR is subject to change through acquisition of new customers, and expansion or attrition of existing customers. ARR is not a standardized measure and may not be comparable to ARR disclosed by other issuers.

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