Clip Money Inc. Reports Third Quarter 2023 Results
29 November 2023 - 10:12AM
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 and nine-month
periods ended September 30, 2023.
Clip Money’s
performance in third quarter of 2023 (“Q3”) was
highlighted by an acceleration of enterprise customers making
regular deposits through the network. The Company validated the
acute need for businesses to find a modern and alternative approach
to managing cash versus the status quo, including the bank branch
or legacy armored carrier service. Transaction volumes and
additional enterprise customers onboarded by the Company in Q3
create a tailwind for the balance of 2023 and a springboard into
2024. The Company is also encouraged by the growing interest from
national and regional Financial Institutions in Clip that are
seeking alternatives to servicing business deposits in their branch
networks.
Third Quarter 2023
Highlights
- Revenue for Q3 was $148,965 USD,
compared to $44,907 in Q2, 2023. This growth was fueled by new
customers, expansion of existing customers and positive seasonal
tailwinds, including back-to-school shopping.
- The Company made continued progress
in the deployment of its Clip Change Order solution in Q3 following
the product launch in Q2, 2023. Several leading enterprise
retailers are actively using the change order service, bringing the
convenience of coin and cash notes directly to their businesses'
front door. Clip is incorporating customer feedback and developing
critical operational experience with this new solution and will be
expanding its availability to more businesses in Q4, 2023. Combined
with Clip Deposits, a business can now realize a comprehensive
solution for managing cash through Clip Change Orders versus
cumbersome and time-consuming legacy options.
- Clip Customer Highlights:
- The Company processed deposits for
over 850 unique depositing stores in Q3.
- The company processed over 40,000
deposits in the quarter, totaling approximately $26.5M in deposit
value. Deposit transactions were up 365% from the prior period and
deposit value was up 342%.
- Deposit growth was primarily driven
by three large multi-store national retailers adding stores to the
Clip platform; including Lids who added over 300 of their
approximately 1,200 stores, while the other two retailers added 246
of their combined 1,200 stores.
- In addition, Clip welcomed new
customer brands to the platform in Q3 with initial store rollouts:
- A national apparel retailer piloted
15 stores in the quarter, including the adoption of Clip Change
Orders. This retailer has over 600 individual stores in shopping
malls across North America.
- Another 600 store retailer began
depositing with Clip at five initial stores in the quarter,
including the adoption of the Clip Change order solution. The
Company plans to expand new store locations with this retailer in
December.
- On September 22, 2023, the Company
announced the closing of a non-brokered private placement of
28,596,826 Common Shares at a price of CDN$0.23 per Common Share
for gross proceeds of approximately US$4,900,000 (the
“Equity Financing”). Separately, the Company also
announced the closing of a non-brokered private placement of
secured convertible notes of the Company (each a
“Convertible Note”) for gross proceeds in the
principal amount of US$6,132,271, inclusive of US$1,032,271
subscribed for by an existing arm’s length investor (the
“Secondary Investor”) (the “Convertible
Notes Financing”, together with the Equity Financing, the
“Financings”). Cardtronics, Inc.
(“Cardtronics”), a wholly-owned subsidiary of NCR
Atleos Corporation (NYSE:NATL) (“NCR”), subscribed
for the entire Equity Financing and US$5,100,000 of the Convertible
Note Financing, for a combined US$10,000,00 investment in the
Company (CAD$13,423,000).
- Cardtronics strategic investment in
Clip has established a long-term, firmware exclusive, commercial
collaboration that will combine Clip's pioneering business cash
deposit solution with NCR’s cardless cash deposit API and cash in
network. NCR will enable Clip deposit services at its premier cash
in network with more than 2,500 operating sites across 30 states
serving more than 70 of the largest population centers across the
United States, complementing the current ClipDrop network of nearly
400 locations. The expanded network will provide a large portion of
U.S. business convenient access to Clip services allowing
businesses to manage cash more efficiently regardless of the branch
presence of their bank or credit union of choice.
"We're thrilled about
Clip’s impressive quarter-over-quarter revenue growth and are
excited to welcome NCR Atleos as a strategic investor and
commercial partner. This partnership seamlessly complements Clip's
existing deposit network. Commercial milestones with large
retailers, like Lids, have onboarded all the stores we can service
with our current network, validating our business model and
onboarding capabilities. Additionally, NCR's network will expand
our total network to approximately 3,000 convenient locations,
including high-quality spots like Walgreens and CVS, where
customers can easily make their business deposits. This substantial
growth reinforces our confidence in the business's upward
trajectory for 2024."
- Joe Arrage (CEO &
Co-founder)
Appointment of ICP Securities
Inc. as Market Maker
The Company is also
pleased to announce that it has entered into a Market Making
Services Agreement with ICP Securities Inc.
(“ICP”) for the purposes of facilitating trading
and liquidity in its common shares. ICP is based in Toronto,
Ontario and is a registered dealer member in good standing with the
Canadian Investment Regulatory Organization. ICP provides
comprehensive market making solutions that help to improve the
trading liquidity and lack of transparency of small and mid-cap
companies. The initial term of the agreement will be four months
commencing on December 1, 2023. Thereafter, the agreement will
automatically renew for subsequent one-month periods unless either
party elects not to renew upon 30 days prior written notice.
ICP is an arms-length
party to the Company and does not currently hold any interest in
the securities of the Company (either directly or indirectly) nor
does it hold any rights or options to acquire such an interest. In
consideration of the market-making services provided by ICP, the
Company shall make a monthly payment to ICP for $7,500.
Additional
Information
The Company’s interim
condensed consolidated financial statements, notes to financial
statements, and management’s discussion and analysis for the three
and nine-month periods ended September 30, 2023 are available on
the Company’s SEDAR+ profile at www.sedarplus.ca. . Unless
otherwise indicated, all references to “$” in this press release
refer to Canadian dollars.
Forward‐Looking
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 www.clipmoney.com.
For further
information, please contact:
Joseph ArrageChief Executive
Officertel: 844-593-2547
Clip Money (TSXV:CLIP)
Historical Stock Chart
From Apr 2024 to May 2024
Clip Money (TSXV:CLIP)
Historical Stock Chart
From May 2023 to May 2024