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Significant reduction of operating expenses realized resulting from successful operational reorganization of Coinmama announced in July 2023.
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Wellfield achieved a milestone first, exceeding $1 million dollars in quarterly gross margins during the three months ending September 30, 2023.
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Coinmama user acquisition from January 2023 to September 2023 exceeded 150,000 organic new user registrations, demonstrating Coinmama's enduring brand awareness and potential for further revenue growth.
Toronto, Ontario--(Newsfile Corp. - November 30, 2023) - Wellfield Technologies Inc. (TSXV: WFLD) (OTCQB: WFLDF) (FSE: K8D) (the "Company" or "Wellfield"), announces the release of its unaudited financial results for the interim period ended September 30, 2023, which are available on the Company's SEDAR+ profile at www.sedarplus.ca. All currency referenced used in this news release are in Canadian dollars ($) unless otherwise noted.
Financial Highlights
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Gross margins of $1.1 million for Q2 ended September 30, 2023, compared to $0.8 million in Q1 2023.
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Cash and short term receivables exceed $1 million for Q2 ended September 30, 2023.
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Operating expenses reduced by $0.8 million over the previous quarter ending June 30, 2023, attributed to the reorganization of Coinmama operations, announced in July 2023.
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Net loss of $0.02 per share for the quarter ending September 30, 2023.
Management Commentary
Levy Cohen, CEO of Wellfield, commented, "This second fiscal quarter has marked a significant milestone in Coinmama's ability to generate gross margins during a challenging market environment. With additional cost savings we expect to realize in the following quarters, Coinmama is now a strong and sustainable business that contributes meaningful gross margins as Wellfield prepares to launch new products and works toward profitability. Leveraging Coinmama's large base of returning users and over 150,000 new user registrations during the calendar year, we anticipate that we have the customer base to quickly monetize Wellfield's decentralized financial services and Ethereum based digital gold that will be launched to the public early next year."
Other Corporate Updates
The Company also announces that the Company's Board of Directors has approved the grant of an aggregate of 2,500,000 restricted share units ("RSUs") to certain directors, officers and employees of the Company pursuant to its amended and restated omnibus incentive plan (the "Plan"). The RSUs have a vesting period of one year. Subject to the Plan and the TSX Venture Exchange (the "TSXV") policies, each vested RSU entitles the holder to receive, on settlement, a cash payment equal to the closing price of the common shares in the capital of the Company (the "Common Shares") on the last trading date prior to settlement, or at the discretion of the Board of Directors, one Common Share, or a combination of cash and Common Shares.
The maximum number of Common Shares reserved for issue pursuant to this Plan pursuant to the exercise of options granted under this Plan is equal to 10% of the number of Common Shares outstanding and the maximum number of Common Shares reserved for issuance, in the aggregate, pursuant to the settlement of RSUs granted under the Plan is 17,310,020. Upon completion of the grants referred to herein, there will be 13,332,208 RSUs and 300,000 options granted under the Plan, representing an aggregate 7.86% of the outstanding Common Shares as of the date hereof.
About Wellfield Technologies
Wellfield is an R&D focused Fintech company that operates on public blockchains including Bitcoin and Ethereum. The Company operates a regulated platform that onboards customers globally at scale, leveraging its proprietary decentralized technology to offer highly disruptive on-chain self-custody solutions. Wellfield leverages these assets to operate two business lines: Coinmama (for consumers) with over 3.5 million registered users globally and Wellfield Capital for institutional and professional investors. Additionally, Wellfield has recently expanded the scope and monetization potential of its technology by acquiring Tradewind Markets, Inc. Tradewind Markets digitizes real world assets, starting with its flagship VaultChain™ Gold and VaultChain™ Silver products, which offer blockchain-based digital ownership of deliverable precious metals held in custody by the Royal Canadian Mint.
For further information contact:
Wellfield Technologies Inc.
Levy Cohen, CEO
levyc@wellfield.io
(832) 483-2575
Ryan Graybill, Investor Relations
investors@wellfield.io
Cautionary Statements as to Presentation of Financial Information & Cautionary Note for U.S. Securityholders
The financial information included or incorporated by reference in this press release or the documents referenced herein has been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, which differs from US generally accepted accounting principles ("US GAAP") in certain material respects, and thus are not directly comparable to financial statements prepared in accordance with US GAAP.
Cautionary Notice on Forward-Looking Statements
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events.
The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the Company's expectation to realize additional cost savings in the following quarters; the Company's ability to launch new products and work towards profitability; the Company's ability to monetize its decentralized financial services and Ethereum based digital gold that will be launched to the public early next year, and the ability to achieve the anticipated timing of such launch; and the development of the Company's business and future activities following the date hereof.
Forward-looking information in this press release are based on certain assumptions and expected future events, namely: the Company will have sufficient working capital and the ability to obtain the financing required in order to develop and continue its business and operations; no adverse changes will be made to the regulatory framework applicable to the Company's business; the Company will be able to generate cash flow from operations, the Company will be able to execute on its business strategy as anticipated; the Company will be able to meet the requirements necessary to obtain and/or maintain authorizations required to conduct the business; general economic, financial, market, regulatory, and political conditions will not negatively affect the Company or its business; the Company will be able to successfully compete in its industry; the Company will be able to effectively manage anticipated and unanticipated costs; the Company will be able to maintain internal controls over financial reporting and disclosure, and procedures in order to ensure compliance with applicable laws; general market conditions will be favourable with respect to the Company's future plans and goals; and the Company will reach the anticipated sales from continuing operations.
These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including but not limited to: the Company's ability to meet the working capital requirements; material adverse changes in general economic, business and political conditions, including changes in the financial markets, changes in applicable laws; compliance with extensive government regulation, the ability of the Company to raise additional capital to fund future operations, compliance with extensive government regulations, domestic and foreign laws and regulations adversely affecting the Company, the impact of COVID-19, and the decentralized finance industry generally.
There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated. Readers are cautioned that the foregoing list is not exhaustive and the forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Readers are encouraged to review the disclosure documents accessible on the Company's SEDAR+ profile at www.sedarplus.ca. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has approved nor disapproved the contents of this news release, nor do they accept responsibility for the adequacy or accuracy of this release.
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