CHARLESTON, S.C., and VANCOUVER, BC, Oct. 15, 2020 /CNW/ - Last Mile Holdings
Ltd. ("MILE" or the "Company") (TSXV: MILE)
(OTC: AZNVF), a leading micro-mobility company with the
broadest product suite in the industry, reported financial results
for the second quarter ended June 30,
2020.
Second Quarter 2020 and Recent Operational Highlights
- February
2020: Changed the Company's name to Last Mile
Holdings Ltd. and its ticker to "MILE."
- February
2020: Successfully closed the acquisition of Gotcha
Mobility ("Gotcha"), a long established brand in the micro mobility
space with contracts enabling the Company to deploy in numerous
locations across the U.S.
- March 2020: Appointed
Louis Lucido, founding partner of the US$148
billion investment management firm DoubleLine Capital, as
Chair of the Company's Board of Directors.
- May 2020: Announced
growth in operations with an over 200% increase in total monthly
ride minutes from 416,600 minutes in January
2020 to 1,281,500 minutes ridden in May 2020.
- May 2020: Increased
vehicles deployed by 17% from January
2020 to May 2020, denoting an
outsized increase in usage of 208% during the same period.
- August 2020: Closed a
non-brokered private placement to raise C$7.8 million at a price of C$0.075, with significant insider commitments, in
support of the Company's nationwide expansion plans.
- September 2020: Began
trading on the OTCQB market under the ticker symbol "AZNVF"
expanding its exposure to US investors.
- September
2020: Announced the launch of an all-new fleet of
e-bikes. The newly redesigned bikes use proprietary elements to
offer a more comfortable ride, smoother electric motor and longer
battery life.
Second Quarter 2020 Financial Results
In the second
quarter of 2019, the Company was a private corporation, had not yet
acquired Gotcha Mobility and operated three locations during the
period. As a result, the Company's results for second quarter of
2020 are not substantially comparable to the prior-year
results.
- Total revenue increased 964% to $1.1
million from $110,000 in the
same year-ago period. The increase in revenue was due to increased
ridership and a greater number of systems deployed as a result of
the Company's successful growth and execution as well as its
acquisition of Gotcha in January
2020.
- Cost of ridesharing services increased 507% to $732,000 from $121,000 in the same year-ago period. The total
cost includes both fixed and variable fees paid, such as fees paid
to in-market partners who managed the maintenance and deployment of
the Company's deployed fleet.
- Salaries, wages and management fees increased 316% $1.4 million from $344,000 in the same year-ago period. The
increase in salaries, wages, and management fees was primarily
driven by the overall increase in employee count as a result of the
Company's previously mentioned acquisition of Gotcha in
January 2020.
- Selling, general and administrative expenses increased 148% to
$431,000 from $173,000 in the same year-ago period. The
SG&A expense consists of marketing costs incurred to promote
the Company's ridesharing businesses as well as an overall increase
as a result of the Gotcha acquisition and additional related
overhead.
- Loss and comprehensive loss increased to $3.4 million from $962,000 in the same year-ago period. The
increase in loss and comprehensive loss was the result of a
nominally greater increase in overall expenses relative to the
increase in revenues previously described.
- At quarter-end, the Company had $275,000 in cash, compared to $720,000 at December 31,
2019. Subsequent to the quarter end, the Company
successfully conducted and completed a non-brokered private
placement for C$7.8 million,
including a commitment for C$1.7
million.
Management Commentary
"In the second quarter and past
few months we've made positive, incremental progress in combining
our operations with Gotcha and expanding our deployments further
across the country," said Last Mile Holdings CEO Max Smith. "With the help of our university and
municipal partners, we've been working to provide our riders with a
safe alternative to public transportation in the roughly 30 active
markets. The pandemic has put a spotlight on micro-mobility
solutions that provide socially-distant transportation solutions,
but we also recognize that the path forward remains largely uphill
as back-to-school programs and other events remain on hold for many
markets. In the meantime, our plan is to continue to deploy
vehicles into our contracted locations, providing a steady growth
trajectory for the foreseeable future. Longer term, we remain
hopeful that the increased ridership trends we witnessed prior to
and in the initial stages of the pandemic will resume during normal
conditions."
Last Mile Holdings also announced today Kate Marley has resigned as Chief Financial
Officer due to personal reasons effective today, October 15, 2020. Marley will remain on board
with the Company for a transitional period as Last Mile begins a
search for a CFO candidate. Marley's departure was not due to any
disagreement with the Company nor any issue related to the
Company's financial statements or accounting practices.
Smith continued: "We appreciate Kate's efforts and the impact
she had during her tenure at Last Mile. With the ongoing pandemic
affecting all of us in different ways, we fully support her
decision to devote more time to her family during a challenging
period. On behalf of our entire organization, we wish her well in
her future pursuits."
For more information on Last Mile Holdings, visit
lastmile-holdings.com.
About Last Mile Holdings
Last Mile Holdings
(TSXV: MILE; OTC: AZNVF), formerly OjO Electric, is one
of the largest micro-mobility companies in the U.S., offering the
broadest product suite in the industry. Last Mile has 30
university and 50 municipal contracted shared mobility systems
under the OjO and Gotcha brands. The acquisition of Gotcha in
the first quarter of 2020 provides an expansive growth pipeline and
a portfolio of products including electric bikes, scooters, and
cruisers. For more information,
visit lastmile-holdings.com.
Follow us on social:
LinkedIn: Last Mile Holdings
About Gotcha Mobility
Gotcha, a subsidiary of Last
Mile Holdings, is a shared electric mobility company dedicated to
providing innovative products and technologies that get people out
of single-occupancy cars and safely onto efficient, sustainable
micro-transit products. The company operates electric bikes,
scooters, and cruisers as transportation solutions tailored to
cities and universities across the US. Gotcha empowers communities
to lead happier, more productive lives through the transformative
power of affordable, accessible micro-transit. For more
information, visit ridegotcha.com.
Follow us on social:
Instagram: @RideGotcha
Facebook: @RideGotcha
Cautionary Statement Regarding Forward-Looking
Information
This news release includes certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian securities legislation that are not
historical facts. Forward-looking statements involve risks,
uncertainties, and other factors that could cause actual results,
performance, prospects, and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Forward-looking statements in this news release include, but are
not limited to, statements with respect to: Last Mile Holdings and
Gotcha's business and prospects and the Company's objectives, goals
or future plans, including the planned deployment of its mobility
units; and the business, operations, expected future costs and
revenues for and management of the Company. Forward-looking
statements are necessarily based on a number of estimates and
assumptions that, while considered reasonable, are subject to known
and unknown risks, uncertainties and other factors which may cause
actual results and future events to differ materially from those
expressed or implied by such forward-looking statements. Such
factors include, but are not limited to: the ability of Company to
meet its deployment targets, access to sufficient mobility units,
usage of mobility units, meeting the requirements of the permits
granted to Company including insurance, general business, economic
and social uncertainties including the impact of COVID-19;
litigation, legislative, environmental and other judicial,
regulatory, political and competitive developments; delay or
failure to receive board, shareholder or regulatory approvals;
those additional risks set out in the Company's public documents
filed on SEDAR at www.sedar.com; and other discussed in this news
release. Accordingly, the forward-looking statements discussed in
this release, may not occur and could differ materially as a result
of these known and unknown risk factors and uncertainties affecting
the companies. Although the Company believes that the assumptions
and factors used in preparing the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed time frames or at all. Except where required by law, the
Company disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events, or otherwise.
Reader Advisory
Neither the TSX-V nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX-V) accepts responsibility of the adequacy or
accuracy of this release.
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SOURCE Last Mile Holdings Ltd.
