- RevoluGROUP Canada (TSXV:REVO) has entered negotiations with a U.K.-based financial group to sell its Spanish subsidiary, Revolupay EP, S.L.U., a payment institution through the Central Bank of Spain.
- The approximately C$4.3 million transaction is expected to close in the next 3-to-5 months
- RevoluGROUP Canada is a technology company active across banking, money remittance, cross-border forex, e-sports, blockchain and more
- RevoluGROUP stock has given back approximately 72 per cent year-over-year and 90 per cent since 2019
RevoluGROUP Canada (TSXV:REVO) has entered negotiations with a U.K.-based financial group to sell its Spanish subsidiary, Revolupay EP, S.L.U., a payment institution through the Central Bank of Spain.
The purchase price is approximately C$4.3 million and remains subject to a definitive agreement and regulatory approval. The parties expect to close the transaction within the next 3-to-5 months.
RevoluGROUP will make a tidy profit on the sale, according to today’s news release, which it will allocate toward its three-year growth plan focused on obtaining new licenses to increase its banking-as-a-service offerings in Canada and the United States.
A portion of the profit will also help the company hire a marketing and investor relations team, as well as further its search for a new chief executive officer after Steve Marshall resigned in July 2023 because of health reasons, and his replacement, Gavin McMillan, stepped down in May 2024.
What does RevoluGROUP’s recent financial performance tell us about its investment quality?
Though RevoluGROUP is averaging about C$500,000 in annual revenue since 2019, its yearly haul has been volatile, and the company has been consistently unprofitable over the period to the tune of over C$3 million per year.
This trajectory shows that RevoluGROUP isn’t gaining market share fast enough to justify its losses, despite its numerous partnerships, affording shareholders little reason to expect price appreciation over the near term.
About RevoluGROUP Canada
RevoluGROUP Canada is a technology company active across banking, mobile apps, money remittance, cross-border forex, mobile phone top-ups, e-gaming, healthcare payments, e-sports, invoice factoring, online travel, blockchain systems and the fintech sector.
RevoluGROUP stock (TSXV:REVO) is down by 14.29 per cent trading at C$0.03 per share as of 9:54 am ET. The stock has given back approximately 72 per cent year-over-year and 90 per cent since 2019.
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(Top photo: RevoluGROUP Canada.)