WonderFi Technologies Inc (WNDR)

[happyglass]

Vancouver, British Columbia--(Newsfile Corp. - May 16, 2022) - WonderFi Technologies Inc. (NEO: WNDR) (OTC Pink: WONDF) (WKN: A3C166) (FTX: WNDR) (the "Company" or "WonderFi") today announced its second quarter 2022 financial results for the period ended March 31, 2022. All financial references are in Canadian dollars unless otherwise noted.
Financial Highlights:
-- WonderFi has commenced revenue generation through its acquisition of
Bitbuy on March 25, 2022

-- Total assets as of March 31, 2022 were $598 million, including $18.8
million in cash and $20.6 million in crypto assets, as well as $412
million of AUC for customers

-- Cash used in operating activities, excluding one-time transaction costs
related to the Bitbuy acquisition, of $4.1 million for the quarter ended
March 31, 2022

-- Total loss and comprehensive loss of $14 million for the quarter ended
March 31, 2022
Operating Highlights:
-- Closed acquisition of Bitbuy on March 25, 2022

-- Completed "bought deal" public offering for aggregate gross proceeds of
$45 million
Subsequent to March 31, 2022
-- Signed definitive agreement to acquire Coinberry Limited ("Coinberry") on
April 18, 2022

-- On closing of the acquisition, WonderFi will house one of the largest
communities of Web3 users in Canada with over 750,000 users
"WonderFi's second quarter was marked by the transformative acquisition of Bitbuy, which immediately positions the company as one the leading regulated crypto exchange businesses in Canada. The signing of the definitive agreement to acquire Coinberry so soon after the closing of the Bitbuy transaction will further add to the company's leadership position within the industry and we are excited for what the future holds as we integrate all of our businesses to continue our rapid user acquisition growth and explore ways to unlock cost synergy opportunities, " said Ben Samaroo, CEO of WonderFi.
Summary of Financial Results for the Quarter ended March 31, 2022
Revenues were $254K for the three and six months ended March 31, 2022, compared to $nil for the same three and six month ended period in 2021. The increase in revenue was due to the acquisition of Bitbuy and represents the activity of Bitbuy from March 25, 2022, to March 31, 2022.
The Company's operating expenses were $14.1 million and $19.4 million for the three and six months ended March 31, 2022, respectively, compared to $439K for the period from January 30, 2021, the Company's incorporation date, to March 31, 2021. The operating expenses increased for the three and six months ended March 31, 2022, compared to the respective prior periods as spending on labour, marketing and software development increased to support the Company's business expansion.
Of total operating costs, one-time expenses of $7.9 million and $10.2 million for professional and consulting fees were incurred for the three and six months ended March 31, 2022, respectively, related to the acquisition of Bitbuy and the $45 million "bought deal" financing. Out of the one-time costs for the Bitbuy acquisition, $5.5 million was paid through shares. Finally, non-cash share-based payments of $2.6 million and $3.5 million, respectively, for the three and six months ended March 31, 2022, were related to the issuance of stock options and RSUs to employees, directors, and external consultants.
Access to Financial Statements and Management Discussion and Analysis
Complete financial statements along with related management discussion and analysis can be found in the System for Electronic Document Analysis and Retrieval (SEDAR), the electronic filing system for the disclosure documents of issuers across Canada at www.SEDAR.com.
Additional Information
For additional information, please contact:
WonderFi Technologies Inc.
Ben Samaroo, CEO
[e-mail]
[phone]
Investor Relations Contact: [e-mail]
Media Contact: [e-mail]
ABOUT WONDERFI
WonderFi is a leading technology company with the mission of creating better access to digital assets through compliant centralized and decentralized platforms. WonderFi provides unified access to digital assets including crypto, DeFi, gaming and NFTs, in a compliant and regulated environment. WonderFi's executive team and Board of Directors have an established track record in finance and crypto, with previous experience at Amazon, Shopify, PayPal, Galaxy Digital and Hut 8. WonderFi's core team of engineers and technologists believe that everyone should have equal access to finance, and are aligned in the mission to empower people around the world to access finance in a simple, smart and secure way. For more information, visit www.wonder.fi.