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- Revenue growth driven by a 7x increase in CTV Revenues
and 38% increase in Mobile
- Subsequent to the quarter ended September 30, 2021, Sabio Holdings Inc. completed
its TSX Venture Exchange qualifying transaction with Sabio,
Inc.
TORONTO, Nov. 29, 2021 /CNW/ - Sabio Holdings Inc.
(formerly, Spirit Banner II Capital Corp. ("Spirit")) (TSXV:
SBIO) (the "Company"), a leader in mobile data-powered CTV
solutions, is pleased to announce the financial results of its
wholly-owned subsidiary Sabio, Inc. (formerly, Sabio Mobile, Inc.)
("Sabio") for the three and nine months ended September 30, 2021. Subsequent to such quarter
end, the Company completed its previously announced qualifying
transaction (the "Transaction") with Sabio, resulting in the
reverse takeover of the Company by Sabio, a private company
incorporated under the laws of Delaware, with the common shares of the
resulting issuer of the Transaction, Sabio Holdings Inc.,
commencing trading on the TSX Venture Exchange on November 26, 2021, under ticker symbol "SBIO" as
a Tier 2 technology issuer.
Accordingly, the results announced today reflect the operations
of Sabio only as the reverse takeover acquiror for securities laws
purposes. The financial results of the business of the Company for
the interim period ended September 30,
2021, prior to the completion of the Transaction, have been
filed separately. The interim financial statements and Management's
Discussion and Analysis for each of the Company and Sabio for the
interim period ended September 30,
2021 are available under the Company's issuer profile on
SEDAR at www.sedar.com. Unless otherwise stated, all dollar
amounts referred to herein or in Sabio's financial results are in
United States (U.S.) dollars.
All amounts in the Company's financial results are in Canadian
dollars.
"Sabio delivered outstanding results for our third quarter 2021.
Our revenue more than doubled year over year, driven by the rapid
adoption of our industry leading connected TV (CTV) solutions,
which now represent over 42% of total sales," said Aziz Rahimtoola, Chief Executive Officer of the
Company and Sabio. "Additionally, I'm very pleased by our team's
ability to remain focused on delivering operational excellence
while completing our recent TSXV listing and capital raise. We
continue to see solid momentum as we close out 2021 with a healthy
balance sheet and robust pipeline, which positions us well to
continue to deliver strong growth in 2022 and beyond."
"2021 has been a pivotal year for Sabio. We have achieved record
revenues, driven by rapid market adoption of our industry leading
CTV solutions. We have begun to make considerable investments into
our sales and support infrastructure, which will allow us to
continue to provide exceptional service to our existing client
relationships while seizing the funnel of new opportunities ahead
of us," said Mr. Rahimtoola. "We believe we are in a unique
position to further capitalize on the thriving Connected TV market,
and we expect our sales momentum to continue for the remainder of
this year and into 2022".
The Qualifying Transaction
For further information regarding the Transaction, please refer
to the Company's press releases dated June
29, 2021, October 6, 2021,
October 15, 2021, November 16, 2021 and November 22, 2021, and the filing statement
("Filing Statement") posted to the Company's issuer profile
on SEDAR at www.sedar.com.
Third Quarter 2021 Financial Highlights of Sabio,
Inc.
- Third quarter 2021 revenues were $6.8
million, which represents a 112% increase from the
$3.2 million in sales reported in the
third quarter of 2020.
- Mobile revenues were $3.9
million, which represents a 38% increase from the
$2.9 million reported in the third
quarter of 2020.
- Connected TV revenues were $2.9
million, which represents a 713% increase from the
$0.4 million reported in the third
quarter of 2020.
- Gross profit was reported at $4.1
million, which represents a 102% increase from the
$2.1 million reported in the third
quarter of 2020. Sabio's gross margin(1) was 61% in the
current quarter.
- Adjusted EBITDA was reported at $0.7
million, which is down 16% from $0.8
million reported in the third quarter of 2020. The reduction
in Adjusted EBITDA is primarily a result of Sabio's increase in
sales & marketing, research & development and general &
administrative expenses.
- IFRS net income was reported at $0.1
million, compared to $0.3
million in the third quarter of 2020.
- Sabio's cash balance was $0.5
million as of September 30,
2021, compared to $0.05
million at year end 2020. This does not include the impact
of the recent capital raise, which closed subsequent to quarter
end, as noted below.
Subsequent Events – Sabio, Inc.
- On October 15, 2021, Sabio
announced the closing of the previously announced private placement
of subscription receipts for aggregate gross proceeds of
C$6,559,316 by Sabio Canada Finco, Inc. ("Finco"), an
Ontario corporation and a
wholly-owned subsidiary of Sabio. On October
22, 2021, Finco closed a second tranche of the concurrent
financing for aggregate gross proceeds of C$89,374. Including both tranches, the concurrent
financing was comprised of an aggregate of 3,799,252 subscription
receipts at a price of C$1.75 per
subscription receipt for aggregate gross proceeds of C$6,648,691.
- On November 19, 2021, in
connection with the completion of Spirit's Qualifying Transaction
(as such term is defined in the policies of the TSX Venture
Exchange), Finco and 2872484 Ontario Inc., a wholly owned
subsidiary of Spirit, amalgamated pursuant to the provisions of the
Business Corporations Act (Ontario), and all of the issued and
outstanding shares of Finco were exchanged for securities of the
resulting issuer, being the Company, on a one-for-one basis.
Effective November 19, 2021, Sabio
also consolidated its share capital on the basis of approximately
0.2735 common shares (old) for 1 common share (new), and Spirit
consolidated its share capital on the basis of approximately
15.9091 common shares (old) for 1 common share (new). The resulting
issuer of the Transaction is the Company, and was renamed "Sabio
Holdings Inc." (TSXV: SBIO), and its U.S. operating subsidiary
"Sabio Mobile, Inc." changed its name to "Sabio, Inc.".
- On November 23, 2021, Sabio
closed on a new credit facility pursuant to the terms of a credit
agreement between Sabio and Avidbank. The facility is secured
against assets of the [Company] including, but not limited
to, its accounts receivable and provides for a $4 million accounts receivable line of credit at
an interest rate of the greater of (i) the Wall Street Journal
prime rate plus 1.00% and (ii) 4.25%. On November 24, 2021, Sabio drew on the facility to
refinance $2,685,000 in high-interest
promissory notes, which bore stated interest rates ranging from 10%
to 15%. The refinance is expected to result in significant cost
savings to Sabio.
About Sabio
Sabio Holdings Inc., through its operating subsidiary, provides
a CTV platform that is powered by mobile data, providing leading
brands with the perfect balance between media, data and technology.
The company's unique approach to combining mobile data, device
location and consumer behaviors aims to provide brands with more
effective targeting and greater prediction accuracy for their
mobile and connected TV ad campaigns. Its team of experienced
marketers, engineers and data scientists are passionately
innovative in everything they do, from developing the company's
proprietary audience platform and ad server to creating and
delivering stunning ads on connected TVs and mobile devices.
For more information, visit: sabio.inc.
Use of Non-IFRS Measures
This press release makes reference to certain non-IFRS
(International Financial Reporting Standards) measures. These
measures do not have a standardized meaning prescribed by IFRS and
therefore they may not be comparable to similarly titled measures
presented by other companies and should not be construed as an
alternative to other financial measures determined in accordance
with IFRS. Rather, these non-IFRS measures are provided as
additional information to complement IFRS measures by providing a
further understanding of operations from management's perspective.
Accordingly, non-IFRS measures should not be considered in
isolation nor as a substitute for analysis of financial information
reported under IFRS. Management believes that these non-IFRS
measures provide useful information to investors in measuring the
financial performance of Sabio for the reasons outlined below.
Management uses Adjusted earnings before interest, income taxes,
depreciation and amortization ("Adjusted EBITDA") as a key
financial metric to evaluate Sabio's operating performance as a
complement to results provided in accordance with IFRS. The term
"Adjusted EBITDA", as defined by management, refers to net income
(loss) before adjusting earnings for finance costs, income taxes,
stock-based compensation, amortization, non-recurring items, and
severance costs.
We believe that the items excluded from Adjusted EBITDA are not
connected to and do not represent the operating performance of
Sabio. We believe that Adjusted EBITDA is useful supplemental
information as it provides an indication of the results generated
by Sabio's main business activities prior to taking into
consideration how those activities are financed and taxed as well
as expenses related to stock-based compensation, depreciation,
amortization, restructuring costs, other expense (income), and
foreign exchange (gain) loss. Accordingly, we believe that this
measure may also be useful to investors in enhancing their
understanding of Sabio's operating performance. It is a key measure
used by Sabio's management and board of directors to understand and
evaluate Sabio's operating performance, to prepare annual budgets
and to help develop operating plans.
Forward-Looking Statements
This press release may contain certain forward-looking
information and statements ("forward-looking information")
within the meaning of applicable Canadian securities legislation,
that are not based on historical fact, including without limitation
statements containing the words "believes", "anticipates", "plans",
"intends", "will", "should", "expects", "continue", "estimate",
"forecasts" and other similar expressions. Readers are
cautioned to not place undue reliance on forward-looking
information. Actual results and developments may differ materially
from those contemplated by these statements. The Company undertakes
no obligation to comment on analyses, expectations or statements
made by third-parties in respect of the Company, its securities, or
financial or operating results (as applicable). Although the
Company believes that the expectations reflected in forward-looking
information in this press release are reasonable, such
forward-looking information has been based on expectations, factors
and assumptions concerning future events that may prove to be
inaccurate and are subject to numerous risks and uncertainties,
certain of which are beyond the Company's control, including the
risk factors discussed in the Filing Statement which are
incorporated herein by reference and are available through SEDAR
at www.sedar.com. The forward-looking
information contained in this press release is expressly qualified
by this cautionary statement and is made as of the date hereof. The
Company disclaims any intention and has no obligation or
responsibility, except as required by law, to update or revise any
forward-looking information, whether as a result of new
information, future events or
otherwise.
This news release shall not constitute an offer to sell or
the solicitation of an offer to buy any securities in any
jurisdiction.
Neither the TSX Venture Exchange nor its Regulation
Service 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 Sabio Holdings Inc.