Clip Money Inc. Reports Third Quarter 2023 Results

Rhea-AI Summary

Clip Money Inc. (TSX-V: CLIP) announced its financial results for Q3 2023, highlighting a surge in enterprise customers making deposits through the network. Revenue for Q3 was $148,965 USD, compared to $44,907 in Q2, 2023. The company processed deposits for over 850 unique depositing stores in Q3 and processed over 40,000 deposits, totaling approximately $26.5M in deposit value. The company also closed 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 and a non-brokered private placement of secured convertible notes of the Company for gross proceeds in the principal amount of US$6,132,271.

TORONTO, Nov. 28, 2023 (GLOBE NEWSWIRE) -- 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 Arrage
Chief Executive Officer
tel: 844-593-2547

FAQ

What are Clip Money Inc.'s financial results for Q3 2023?

Clip Money Inc. reported a revenue of $148,965 USD in Q3 2023, compared to $44,907 in Q2, 2023.

How many deposits were processed by Clip Money Inc. in Q3 2023?

Clip Money Inc. processed over 40,000 deposits, totaling approximately $26.5M in deposit value in Q3 2023.

What private placements did Clip Money Inc. close recently?

Clip Money Inc. recently closed a non-brokered private placement of 28,596,826 Common Shares and a non-brokered private placement of secured convertible notes of the Company.

Who invested in Clip Money Inc. recently?

Cardtronics, Inc., a wholly-owned subsidiary of NCR Atleos Corporation, invested in Clip Money Inc. recently.

What strategic collaboration did Clip Money Inc. establish recently?

Clip Money Inc. established a long-term, firmware exclusive, commercial collaboration with NCR, combining business cash deposit solution with NCR’s cardless cash deposit API and cash in network.