Victory Square Technologies Provides Corporate Update - 2021 Recap and 2022 Outlook
Victory Square Technologies provided a corporate update reflecting on 2021 and its outlook for 2022. In 2021, the company showcased a robust balance sheet, acquiring significant assets and making share repurchases. Key financial highlights include issuing three dividends worth approximately $39.65 per 1,000 shares and successful spin-offs of companies like GameOn Entertainment. For 2022, Victory Square aims to focus on further spin-offs, investments in Web3, digital health, and climate tech while ensuring a healthy share price despite recent declines.
- Strong balance sheet with significant assets and working capital.
- Share buyback of 562,000 shares at an average cost of $0.4814.
- Distributed dividends valued at approximately $39.65 per 1,000 shares.
- Successful spin-offs, including GameOn Entertainment and Fantasy 360 Technologies.
- Completed $6 million sale of VPN platform and gained over $1 million from shares in Argo Blockchain.
- Recent decline in share price over the past seven months due to market volatility.
- Increased uncertainty in the microcap space affecting future projections.
VANCOUVER, British Columbia, Jan. 20, 2022 (GLOBE NEWSWIRE) -- Victory Square Technologies Inc. (“Victory Square” or the “Company”) (CSE:VST) (OTC:VSQTF) (FWB:6F6), a company that provides VC Investment access to a diverse portfolio of next generation technology companies within an audited, transparent and liquid investment vehicle, is pleased to provide a Corporate Update - 2021 Recap and 2022 Outlook.
What lies ahead in 2022 is at once familiar and radically new. To borrow from Jeff Bezos, we’re still in a Day One mentality — thinking and acting with speed and dexterity of a startup, because the alternative is stasis and irrelevance. In this respect, 2021 has both validated our existing investment philosophy and opened up new pathways for growth.
2021 Recap:
Company Investment Overview
Victory Square was founded to fill the early-stage investment gap for a broad range of investors. We provide VC Investment access to next generation technology companies in industries like Web3, Gaming, the Creator Economy, the Metaverse, Digital Health and Climate Tech within an audited, transparent and liquid investment vehicle, effectively democratizing access to the next generation of top startups.
Through our partnership with Launch Academy we have relationships with more than 80 global accelerator partners. Ranging from India, Brazil, Estonia, Singapore, Vietnam as well as the US and Canada. This allows us to access a global pool of some of the brightest entrepreneurs. Tech is borderless, great is coming from everywhere. And we have access to some of the best and brightest.
With real skin in the game and strong insider ownership, management is aligned with investors. We drive value by monetizing investments and reinvesting the gains in new innovations. With a basket of 25 portfolio companies, 6 are now hitting liquidity events.
Finally, when we look at the future, we’re working towards making it brighter than today. Disruptive innovation can help solve some of the world’s most persistent problems. We invest to be a force for good — focusing on technologies and companies we believe will affect the environment, our society, and the world’s ability to create further innovations in a positive way.
Financial Highlights:
- Healthy Balance Sheet
- Significant assets and strong working capital position
- Significant assets and strong working capital position
- Share Buy Back
- The Company purchased a total of 562,000 shares and the average cost with commission was
$0.48 14 or without commission was$0.47 13
- The Company purchased a total of 562,000 shares and the average cost with commission was
- Issued 3 Common Share Dividends
- In 2021, Victory Square issued 3 dividends of securities to its shareholders with an aggregate market value of approximately
$39.65 for every 1,000 shares held
- In 2021, Victory Square issued 3 dividends of securities to its shareholders with an aggregate market value of approximately
Spin-Offs:
- GameOn Entertainment Technologies (CSE:GET) public listing
- Fantasy 360 Technologies (CSE:VRAR) public listing
- Covalent CQT listing
Exits:
- Completed
$6,000,000 Sale of VPN Platform
- Completed sale of shares in Argo Blockchain PLC for a
$1,021,244 gain
Acquisition & Investments:
- Completed Acquisition of IV Hydreight, An On-Demand & On-Site Mobile Health, Pharmaceutical & Wellness Service Provider Across the USA
- Completed Blockchain & Cybersecurity IP acquisition from Aspen
- Completed Investment in Renewable Energy Company – Stardust Solar
- Completed Follow-on Investment in #4 Ranked Influencer Platforms - Creator.co
Other Notable Portfolio Highlights:
Victory Square Digital Health
- Launch of white label platform with full-suite of mobile digital health solutions and telemedicine platform to surgery centers, skilled nurses, home care agencies and hospice care. Built up a network of healthcare professionals in 50 states across the US, pharmacy license (503 license)
Victory Square Health
- Completed development of their virtual healthcare platform (telemedicine, virtual pharmacy, and at‐home point‐of‐care diagnostic testing), to be launched in Minas Gerais, Brazil in Q1 2022
Creator.co
- Over 150,000 Creators from all over the world are currently collaborating with brands through the Creator.co platform to drive awareness, content, and conversions on Instagram, Facebook, Twitter, YouTube, and TikTok. Creator.co is listed as one of the Top 5 Influencer Marketing Platforms for 2021 (source: Influencer Marketing Hub)
Stardust Solar
- Franchisee base grew to 12 territories sold or reserved in 2021 and is on pace to double that in 2022. Stardust Solar received the Consumer Choice Award for “Best Solar Energy Company” (Vancouver, BC)
Fansunite (CSE:FANS)
- Raised a total of
$38,180,510 in 2021 and completed the acquisition of American Affiliate, accelerating entry into the U.S. Gaming Market
CoPilot
- CoPilot AI was recognized: 2021 Company to Watch (Deloitte), High Performer and Users Love Us (G2), and received a 4.7-star review rating on Capterra
Next Decentrum
- Launched: a) Momentable.ai, a versatile platform for iconic art and culture NFTs from the world’s top museums and; b) first Crypto Pharaohs NFT drop
Portfolio
| Company Name | Vertical |
| Fansunite Entertainment Inc. | Sports Betting, Gaming and Esports |
| GameOn Entertainment Technologies Inc. | Gaming, NFTs, Play to Earn |
| Fantasy 360 Technologies Inc., d/b/a Immersive Technologies | VR, AR, Metaverse, Web3 |
| Stardust Solar Technologies Inc. | Solar Energy, Renewables, EV Charging |
| VS Digital Health Inc. | Digital Health, Online Pharmacy, Diagnostic Testing |
| IV Hydreight Inc. | Digital Health, Online Pharmacy |
| CoPilot AI | AI Technology, Automation |
| Creator.co | Creator Economy, Web3, NFTs |
| Victory Square Health Inc. | Diagnostic Testing, Digital Health |
| Turnium Technology Group Inc. | Software defined wide area network platforms |
| Next Decentrum Technologies Inc. | Web3, Blockchain, NFTs |
| Cloud Nine Web3 Technologies Inc. | Web3, EdTech, Metaverse |
| Cloud Advisors | Insurance tech |
| Mercury Acquisitions Corp. | Cannabis |
| Grow Academy Technologies Inc. | Plant Based Science |
| Metaspectral | Artificial intelligence (AI) and Machine Learning (ML) |
| Capaciti | Web3, Future of Work |
| PayVida Solutions Inc. | Fintech |
| Flo Digital Inc. | VR, AR, Metaverse |
| Victory Entertainment Inc. | Film, TV, Digital Content |
| PDL USA Inc. | Custom software development |
| Draft Label Technologies Inc | Custom software development |
| VS Blockchain Assembly Inc. | Web3, Blockchain |
| BlockX Capital Corp. | Web3, Blockchain, DeFi |
| Covalent Network Corporation, CQT Token | Web3, Blockchain, DeFi |
| *Victory Square Technologies portfolio as of December 31, 2021 | |
2022 Outlook:
The Top 5 objectives that Victory Square is focused on are:
- Spin-offs
- Web3
- Digital Health
- Climate Tech
- A Healthy Share Price
1. Spin-Offs
In 2020, we had 1 company list (Fansunite), in 2021, we had 2 companies listed (GameOn, Fantasy 360), and in 2022, we’re anticipating 4 companies to be publicly listed. Those companies are:
- Stardust Solar
- Creator.co
- Turnium Technology Group
- CoPilot
This will further validate the Victory Square business model, add to our successful track record, strengthen our balance sheet, and unlock value to continue building a pipeline of new opportunities.
2. Web3
We expect to invest a higher percentage of our time, knowledge and money in Web3 projects, protocols, and companies . As is evident from some of our thought leadership pieces, we’re incredibly bullish on Web3 and think we have a great opportunity to go deeper there. However, we are aware, it's still the early stages of this era of the internet.
And, we understand the critiques: ie. "Nothing useful has been built using crypto and blockchains, other than tools for speculating on crypto and NFTs." "The technical infrastructure of Web3 is both flawed and also not as decentralized as many claim."
To date, the focus and excitement around Web3 has been around creating a user-owned internet by infusing physical properties like scarcity, uniqueness, ownership, and self-custody into digital items. Despite the technical skepticism about Web3, our excitement with the space is less about the overriding mission to deplatform centralized platforms and censorship-resistance, and more about rapid experimentation of governance and incentive models. Specifically, the coordination of large groups of strangers around a shared mission,who are now pooling money and investing in things together. This is pushing the boundary on how to structure and operate a decentrally owned and governed group of real-world businesses. They’ll compete with VCs, using access to the community as potential customers, liquidity providers, and advocates as a competitive edge.
Every time a new NFT project or a DAO comes together and falls apart, and every time people jump into a seemingly worthless coin, the whole system evolves and it produces new tools and tricks that entrepreneurs and policy makers can use to attempt to solve large problems, both digital and physical.
Like Web 1.0 in the mid-90s, Web3 is still immature and not ready for the mainstream. And, therefore, we believe that there will be continued volatility, and potentially a correction in the sector. However, out of the rubble, big winners will emerge. Our focus is to use our competitive advantage (ie. first-mover, data, access, customers, talent, partnerships and funding) to identify these projects that have the best chance of coming out. Remember, Web 2.0 emerged out of the rubble of the Dot Com crash.
We currently have live projects focused on: NFTs, DAOs, P2E (Play to Earn) Games, the Metaverse, DeFi, and Creator Coins/Social Tokens.
Companies in space include: GameOn Technologies, Fantasy 360 Technologies, Creator.co, Covalent CQT, Next Decentrum, VS Blockchain Assembly, BlockX, Cloud Nine
3. Digital Health
The pandemic has not only accelerated technology innovation and adoption in healthcare, but it has also exposed many weaknesses and areas of improvement.
Telehealth is no longer considered a luxury, but an integral part of a healthcare strategy. Remote healthcare is here to stay, and healthcare practitioners need to invest in the proper technology to remain relevant in an ever-evolving virtual care world—this includes ensuring that patients have the same-quality visits in a virtual setting as they would in the doctor’s office.
Customers have been seeking a more personalized healthcare experience, and now with the explosive growth and familiarity with telehealth, at-home testing and wearables, it has become increasingly simple to monitor a patient’s health in the comfort of their home. In fact, home-based wearable and implantable biosensors, such as smart jewelry like the Oura and Apple Watch, continuous glucose monitors, KardiaMobile EKG app and Bluetooth-enabled medical devices such as stethoscopes have become more prevalent and more accessible to consumers.
Demand for this technology will only increase as at-home or on-the-go physician monitoring continues to grow, fueling adoption by healthcare practitioners. These consumer-grade biometrics, including trackers and wearable devices, are making a substantial difference by allowing physicians to track a patient’s activity level, calories burned, sleep duration, and food intake outside of a clinical setting.
We can look forward to a world where the benefits of artificial intelligence and a better understanding of all the factors that influence health will lead us to have the opportunity to lead healthier and more productive lives. Health systems will be personalized to support all these changes.
We currently have live projects focused on: Telehealth, At-home Testing, Pharmacy, Chronic Care, Supplements, Mental Health, Pet Health
Companies in space include: Victory Square Digital Health, Victory Square Health, Hydeight, Discreet Care
4. Climate Tech
Much of the innovation in the decade ahead must be directed towards solving the climate emergency. This crisis endangers the world and every living thing in it. However, climate change isn’t just an environmental issue. Stopping it will demand trillions of dollars in investment across many sectors, and commandeer as much ingenuity as humanity can muster. Clean energy and decarbonization will bring enormous economic rewards for companies that can build solutions. Clean tech alone presents a
VST sees enormous potential in climate tech, as these innovations transcend sectors and become woven into the fabric of our daily lives. The stakes, and the market opportunities, are enormous.
We currently have live projects focused on: Education, Renewables, Solar, EV Charging, Carbon Credits
Companies in space include: Stardust Solar, Draft Label
5. Maintain a Healthy Share Price
To build a successful company, we need to be able to do three things:
- Pick the Right Investments
- Help Portfolio Companies Succeed
- Maintain a Healthy Share Price
So far, steps one and two are playing out beautifully. However, the share price decline over the past 7 months has been very disappointing.
We’ve been very fortunate to have such a passionate, supportive and vocal shareholder base. And, we understand how frustrating the share price decline must be for our shareholders. Despite the share price decline though, I know that we’ve built a portfolio full of phenomenal companies and a share price regression to the mean is inevitable.
We need to build a solid, communicative relationship with our existing Victory Square Shareholders. This will help to ensure there is a continuous and mutual understanding of the company’s underlying value and objectives as well as shareholders concerns.
A couple of things to keep an eye out for:
- Better and more frequent, engaged and direct communication with shareholders through the Discord channel, our newsletter, and monthly webinars
- Releasing our NAV on a more frequent basis
- Increased thought leadership, marketing and earned media efforts to reach new potential investors, with a specific emphasis on Family Offices
The decline of the microcap space over the past 7 months, volatility on the major indexes, inflation worries, rate hikes, and omicron shutdowns have created a lot of uncertainty about what lies ahead for many. Although uncertainty abounds domestically and globally, opportunity also abounds for investors — the challenges ahead are plain to see and, in many respects, timeless: health and safety, the desire to communicate and play, the need to eat and work and thrive. And, Victory Square has built a portfolio full of phenomenal companies finding creative new ways to solve these timeless needs.
We’re not in the business of trying to be like everyone else. We’re in the business of making money for our investors and helping support the new wave of incredible entrepreneurs.
We are committed to nothing short of excellence in the weeks, months and years ahead.
Previous corporate updates in 2021 can be viewed below:
Victory Square Technologies CEO Issues Future Forecast Letter to Shareholders
Victory Square Technologies Provides Corporate Update as at March 17, 2021
Victory Square Technologies Provides Corporate Update as at May 31, 2021
Victory Square Technologies Provides Corporate Update as at August 17, 2021
Victory Square Technologies Provides Corporate Update as at December 9, 2021
Check out VictorySquare.com and sign up to VST’s official newsletter at www.VictorySquare.com/newsletter.
On behalf of the Board of Directors
“Shafin Diamond Tejani”
Director and Chief Executive Officer
Victory Square Technologies Inc.
www.victorysquare.com
For further information about Victory Square, please contact:
Investor Relations
Contact – Edge Communications Group
Email: ir@victorysquare.com
Telephone: 604 283-9166
Peter Smryniotis - Director
Telephone: 604 283-9166
ABOUT VICTORY SQUARE TECHNOLOGIES INC.
Victory Square (VST) builds, acquires and invests in promising startups, then provides the senior leadership and resources needed for fast-track growth. VST’s sweet spot is cutting-edge tech that’s shaping the 4th Industrial Revolution. Our corporate portfolio consists of 20+ global companies using AI, VR/AR, and blockchain to disrupt sectors as diverse as fintech, insurance, health and gaming.
What we do differently for startups
VST isn’t your ordinary investor. With real skin in the game, we’re committed to ensuring each company in our portfolio succeeds. Our secret sauce starts with selecting startups that have real solutions, not just ideas. We pair you with senior talent in product, engineering, customer acquisition and more. Then we let you do what you do best — build, innovate and disrupt. In 24-36 months, you’ll scale and be ready to monetize.
What we do differently for investors
For investors, we offer early-stage access to the next unicorns before they’re unicorns. Our portfolio represents a uniquely liquid and secure way for investors to get access to the latest cutting-edge technologies. Because we focus on market-ready solutions that scale quickly, we’re able to provide strong and stable returns while also tapping into emerging global trends with big upsides.
Victory Square integrates a strong ESG (environmental, social and corporate governance) component throughout its operations. Our portfolio highlights minority entrepreneurs, often overlooked by traditional investors, including many from developing countries. We are also dedicated to giving back to the communities in which we serve and operate. The Company’s mandate is to assist organizations through its time, talent and treasure. The Company is committed to organizations that provide services in the youth, mental health, special needs, sport, tech, education, marginalized groups, First Nations, and accessibility sectors.
VST is a publicly-traded company headquartered in Vancouver, Canada, and listed on the Canadian Securities Exchange (VST), Frankfurt Exchange (6F6) and the OTCQX (VSQTF).
For more information, please visit www.victorysquare.com.
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FORWARD-LOOKING INFORMATION
This news release contains “forward-looking information” within the meaning of applicable securities laws relating to the outlook of the business of Victory Square and its portfolio companies, including, without limitation, statements relating to future performance, execution of business strategy, future growth, business prospects and opportunities of Victory Square and its related subsidiaries and portfolio companies, including those items listed under the heading “Goals for the Next Quarter”, “2022 Outlook” and other factors beyond our control. Such forward-looking statements may, without limitation, be preceded by, followed by, or include words such as “believes”, “expects”, “to be”, “anticipates”, “estimates”, “intends”, “plans”, “continues”, “project”, “potential”, “possible”, “contemplate”, “seek”, “goal”, “objectives”, “outlook” or similar expressions, or may employ such future or conditional verbs as “may”, “might”, “will”, “could”, “should” or “would”, or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. All statements other than statements of historical facts contained in this news release are forward-looking statements. Forward-looking information is based on certain key expectations and assumptions made by the management of Victory Square. Although Victory Square believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on them because Victory Square can give no assurance that they will prove to be correct. Although Victory Square believes that the expectations reflected in forward-looking statements in this press release are reasonable, such forward-looking statements has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Victory Square’s control, including, but not limited to, the risk factors discussed in the continuous disclosure materials of the Victory Square which are available under the Victory Square’s profile on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. Actual results and developments may differ materially from those contemplated by these statements. The statements contained in this news release are made as of the date of this news release. Victory Square disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
FAQ
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