TORONTO, Nov. 20, 2019 /CNW/ - Globalive Technology
(TSX-V: LIVE) (the "Company"), a technology and software
commercialization firm developing and investing in innovative
solutions to disrupt traditional industries, including retail
consumer finance, today announced its financial and operational
results for the third quarter of 2019 (the "Financial Period").
For a summary of the financial results, see the Selected Q3
Financial Highlights set out below as well as more detailed
information contained in the Company's interim financial statements
and related management discussion and analysis quarterly highlights
which are available on the Company's SEDAR page at
www.sedar.com.
SELECTED Q3 OPERATIONAL HIGHLIGHTS
Key operational developments for the Company in the third
quarter of 2019 included:
- Interest in FLX Holding Corp. / Flexiti Financial
Inc.: On January 9, 2019 and
February 20, 2019, the Company
announced it is exercising its call right to acquire 2629331
Ontario Inc. ("262 Ontario"), the
controlling shareholder of FLX Holding Corp. ("FLX"), under a put,
call and right of first refusal agreement dated June 21, 2018, subject to certain conditions
precedent, including the Company's satisfaction that adequate
financing can be obtained to fund FLX and Flexiti Financial Inc.
("Flexiti"). The Company has continued to work with FLX, Flexiti
and their stakeholders throughout the Financial Period to see if
these conditions can be satisfied. Further to an announcement made
on September 13, 2019, the Company is
also considering, in addition or in the alternative to the exercise
of the call right, negotiating a business combination transaction
that would result in the Company owning all or a substantial
portion of the common equity of Flexiti on terms acceptable to the
parties and their respective stakeholders. The negotiation and
implementation of such a business combination is now the Company's
primary focus in relation to Flexiti, however, those negotiations
are still preliminary and there can be no assurance that such a
transaction, or even an agreement relating to such a transaction,
will be reached.
- Blockchain/Cryptocurrency Business Ventures: The
Company has substantially ceased its active operations in the
blockchain and cryptocurrency space. During the Financial Period
the Company sold its interest in Globalive BIG Dev Inc. ("GBD"),
its business venture with Business Instincts Group Inc. ("BIG"), to
BIG and took back a debenture from BIG in the principal amount of
$1,250,000.
- Investments: The Company has made and continues
to make strategic investments in existing and potential future
collaborators and other strategic partners. During the Financial
Period the Company allocated a small amount of capital into Civic
Resource Group International Inc. and fulfilled its second
$250,000 USD ($331,125 CAD) commitment to invest in the
University of Toronto Creative
Destruction Lab's Blockchain and Artificial Intelligence Fund.
After the Financial Period, the Company also invested a small
amount of capital into Acorn Biolabs, Inc. The details of these
investments and their valuations are described in the Financial
Statements.
SELECTED Q3 FINANCIAL HIGHLIGHTS
Key financial characteristics of the Company for its four most
recently completed quarters were:
|
Sep 30,
2019
|
Jun 30,
2019
|
Mar 31,
2019
|
Dec 31,
2018
|
Cash
|
9,432,854
|
7,080,097
|
8,393,157
|
13,436,845
|
Working
capital*
|
9,399,539
|
6,817,234
|
8,924,056
|
13,546,228
|
Total
Assets
|
25,925,144
|
24,857,659
|
36,098,955
|
38,311,011
|
Total
Liabilities
|
(113,416)
|
(344,712)
|
(652,311)
|
(1,046,334)
|
Change in
unrealized gain (loss) from investments
|
1,465,768
|
(8,768,873)
|
(163,688)
|
(921,536)
|
Net income (loss)
before taxes for the period
|
891,916
|
(11,060,081)
|
(1,708,286)
|
(9,630,988)
|
Deferred tax
recovery (expense)
|
–
|
–
|
–
|
–
|
Net income (loss)
from continuing operations for the period
|
891,916
|
(11,060,081)
|
(1,708,286)
|
(9,630,988)
|
Net income (loss)
from discontinued operations for the period
|
-
|
4,855
|
(490,100)
|
–
|
Net comprehensive
income (loss) for the period
|
891,916
|
(11,055,226)
|
(2,198,386)
|
(9,630,988)
|
* Note that "working
capital" does not have any standardized meaning prescribed by IFRS
and may not be comparable to similar measures presented by other
companies. Working capital consists of current assets minus current
investments minus current liabilities plus promissory notes.
Working capital excludes any digital assets and investments. For a
more detailed explanation of management's approach to working
capital and the risks and uncertainties of using this financial
measure to evaluate the Company's performance, please see the
Company's filing statement dated May 29, 2018.
|
The Company's gains for the most recently completed quarter were
driven primarily by the realization of one of the Company's private
equity investments for a gain of $1,310,116 and the disposition of the Company's
interest in GBD for a gain of $183,978. Please refer to the Company's interim
financial statements and corresponding management discussion and
analysis for further details.
ABOUT GLOBALIVE TECHNOLOGY
Globalive Technology is a next generation software company and
venture partner that is developing and investing in innovative
solutions to disrupt traditional industries, with a particular
focus on the retail consumer finance industry. The company forms
partnerships with leading high growth companies to develop and
commercialize software solutions using optimal technology stacks.
It is controlled by Globalive Capital Inc. which has founded and
co-founded 12 businesses over the past 20 years with six successful
exits ranging from $10M to
$1.3B USD, has made over 100 venture
investments and has over 45 technology companies in its portfolio.
For more information, visit www.globalivetech.com.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements
relating to the Company and its business ventures. Such
forward-looking statements are identified by terms such as "will",
"can be", "subject to", "if", "considering", "would", "continues
to" and similar expressions. All statements, other than statements
of historical fact included in this release, including those noted
above, are forward-looking statements that involve risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Company's expectations include a breakdown in
the Company's relationship and/or negotiations with its strategic
and transactional partners, difficulties or delays in raising the
necessary financing to complete a transaction, an inability to
satisfy the conditions precedent to a transaction, economic
conditions affecting the Company or its transaction partners, the
inability to negotiate exclusivity for a possible transaction,
competition from third parties with an interest in working with the
Company's transaction partners, a transaction not resulting in the
expected economic or other benefits for the Company, difficulties
or delays in negotiating or consummating a transaction, changes to
the value of the assets underlying the Company's secured loans and
other investment assets, changes to the Company's strategic
plan and other risks as set out in the Company's filing
statement dated May 29, 2018
available on its SEDAR page at www.sedar.com.
The reader is cautioned that assumptions used in the
preparation of any forward-looking information may prove to be
incorrect. Events or circumstances may cause actual results to
differ materially from those predicted as a result of numerous
known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of the Company. The Company cannot
guarantee that any of the forward-looking statements contained in
this press release will occur as disclosed herein or at all. The
reader is cautioned not to place undue reliance on any
forward-looking information.
Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made
as of the date of this news release and the Company will only
update or revise publicly the included forward-looking statements
as expressly required by Canadian securities law.
FOR FURTHER INFORMATION, PLEASE CONTACT:
For media inquiries:
Rob
Moysey
Communications Manager, Globalive
Media@globalivetech.com
For investor
inquiries:
InvestorRelations@globalivetech.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release
SOURCE Globalive Technology