FRNT Financial Provides Context to Release of FY24 Financials & Business Update

Rhea-AI Summary

FRNT Financial Inc. (TSXV: FRNT) (OTCQB: FRFLF) has released its FY24 financial results and business update, highlighting growth amid challenging market conditions in the cryptocurrency space. Key highlights include:

- Institutional services revenues grew 3.6x year-over-year to approximately $1.6M
- Current assets of CAD $5.13M, down 12% over the period
- Treasury investments saw +23% ROE year-over-year
- Executing on $500 million in notional mandates for advisory and consulting services
- Partnership with BitGo on an automated lending platform
- Most active month in spot-trading services in two years (July 2024)
- FCA registration for FRNT Financial UK

CEO Stéphane Ouellette expressed optimism about the company's position as the crypto market enters a period of expansion.

Positive

• Institutional services revenues grew 3.6x year-over-year to $1.6M
• Treasury investments saw +23% ROE year-over-year
• Executing on $500 million in notional mandates for advisory and consulting services
• Partnership with BitGo on an automated lending platform
• Most active month in spot-trading services in two years in July 2024
• FCA registration obtained for FRNT Financial UK

Negative

• Current assets declined by 12% to CAD $5.13M over the period

Toronto, Ontario--(Newsfile Corp. - October 22, 2024) - FRNT Financial Inc. (TSXV: FRNT) (OTCQB: FRFLF) (FSE: XZ3) ("FRNT" or the "Company"), a leading institutional capital markets and advisory platform focused on digital assets, today provides context for FY24 financial results and a business update. The Company, emerging from challenging bear-market conditions in the cryptocurrency space, highlighted key factors contributing to its revenue potential and provided context for FY24 financial performance.

Financial Highlights:

• Institutional services revenues grew 3.6x year-over-year versus FY23 figures (approximately $1.6M vs $440,000) as the institutional client environment for digital assets normalized. This was achieved with recurring expenses relatively unchanged.
• Current assets of CAD $5.13M saw decline of only 12% over the period, as the Company maintained financial stability during a difficult period. The Company has no debt.
• Performance in the Company's treasury continued to be strong with investments seeing +23% ROE year-over-year.

Business Update Highlights:

• Advisory & Consulting: The Company continues to execute on the $500 million in notional mandates, announced following Q3/24 results. FRNT is actively advising clients on a range of corporate finance activities, including mergers and acquisitions (M&A) and structured financings. Several of these mandates are in advanced stages and are expected to conclude over the next 9-12 months.
• Lending Origination: The company announced a partnership with BitGo on an automated lending platform in Q1/25. FRNT continues to search for potential counterparties on a variety of over-collateralized loan originations versus crypto-collateral.
• Trading Services: FRNT had its most active month in its spot-trading services in two years in July 2024. The Company's onboarding pipeline remains as active as it has been since 2021. Additionally, the Company has seen renewed interest in regulated OTC derivatives, which it plans to capitalize on by launching an enhanced version of its "SEM-Trade" derivatives platform.
• Regulatory: In September, the Company announced that wholly owned subsidiary FRNT Financial UK Ltd. had received FCA registration. The Company views the regulatory framework as a cornerstone of its international expansion strategy in the UK.

CEO Commentary:
Stéphane Ouellette, CEO of FRNT, noted, "We're extremely pleased to see the evolution of our business as the crypto industry exits one of the worst bear-markets in its history. Amid improving market conditions management strongly believes the firm is as well positioned as any to capture share as the market enters its first period of expansion since 2022. We look forward to continuing to grow revenue, business opportunities and maintain our leadership position in Global institutional digital assets as this, still nascent market, matures."

About FRNT Financial Inc.
FRNT Financial is an institutional capital markets platform that bridges traditional and web-based finance through innovative technology-forward solutions. The Company partners with financial institutions and crypto-native firms to deliver a range of capital markets services. Headquartered in Toronto, FRNT was co-founded in 2018 by CEO Stéphane Ouellette.

For further information, contact:
Stéphane Ouellette
Chief Executive Officer
investors@frnt.io
+1 833 222-3768

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.

Cautionary Note Regarding Forward-Looking Information

This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable law which may include, without limitation, statements relating to revenue generation trends and potential, the conclusion of advisory agreements, expectations regarding lending origination and other Company operations, financial and business prospects of the Company, its assets and other matters. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All forward-looking statements and forward-looking information are based on reasonable assumptions that have been made by the Company as at the date of such information. Forward-Looking statements and forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements and forward-looking information, including but not limited to: the general risks associated with the speculative nature of the Company's business, current global financial conditions, uncertainty of additional capital, price volatility, government regulation in the industries in which the Company operates, political and economic risk, absence of public trading market, arbitrary offering price, dilution to the Company's common shares, dependence on key personnel, currency fluctuations, insurance and uninsured risks, competition, legal proceedings, conflicts of interest and lack of dividends. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or forward-looking information. The Company does not undertake to update any forward-looking statement or forward-looking information that is included herein, except in accordance with applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/227400

FAQ

What was FRNT Financial's (FRFLF) institutional services revenue growth in FY24?

FRNT Financial's institutional services revenues grew 3.6x year-over-year in FY24, reaching approximately $1.6M compared to $440,000 in FY23.

How much are the notional mandates FRNT Financial (FRFLF) is executing on?

FRNT Financial is executing on $500 million in notional mandates for advisory and consulting services, announced following Q3/24 results.

When did FRNT Financial (FRFLF) have its most active month in spot-trading services?

FRNT Financial had its most active month in spot-trading services in two years in July 2024.

What regulatory approval did FRNT Financial (FRFLF) receive in September 2024?

In September 2024, FRNT Financial's wholly owned subsidiary FRNT Financial UK received FCA registration.