/C O R R E C T I O N from Source -- Banxa Holding Inc/

In the news release, BANXA Reports March Quarter Financial Results, Maiden Adjusted EBITDA and Record-setting Revenue, issued 26-May-2021 by Banxa Holding Inc over CNW, we are advised by the company that in the fourth bullet point in the Highlights section, it should read "March 2021 Quarter TTV of $205m, an increase of 93% from $107m for the prior Quarter" rather than "March 2021 Quarter TTV of $205m, an increase of 93% from $107m for the same period in 2020" as originally issued inadvertently. The complete, corrected release follows:

BANXA Reports March Quarter Financial Results, Maiden Adjusted EBITDA and Record-setting Revenue

Highlights:

• Total Transaction Value (TTV) of $396m for the nine months ended March 31, 2021, an increase of 1,470% from $25m for the same period in 2020
  
  
• Revenue of $21m for the three months ended March 31, 2021, an increase of 1,479% from $1.3m for the same period in 2020
  
  
• Adjusted EBITDA Profit increased to $1m for the three months ended March 31 2021, up from Adjusted EBITDA Loss of $480,170 for the same period in 2020
  
  
• March 2021 Quarter TTV of $205m, an increase of 93% from $107m for the prior Quarter
  
  
• Over $25m in cash and cash equivalents based on today's date.

TORONTO and MELBOURNE, May 26, 2021 /CNW/ - BANXA Holdings Inc (TSXV: BNXA) (OTCQX: BNXAF) (FSE: AC00) ("BANXA" or "The Company") a Payment Service Provider (PSP) focused on providing clients safe, compliant access to the digital assets market, is pleased to announce it has recorded its maiden adjusted EBITDA profit since listing. The Company anticipates continued revenue growth and recognizes that in volatile markets, increased interest in cryptocurrencies from both individuals and institutions, confirms the resilience of the Company's business model, growing transaction volumes as crypto currencies rise and fall.

Banxa had its initial public listing on January 6, 2021, and is the only Payment Service Provider (PSP) serving the digital asset industry that is publicly traded anywhere in the world.

Founder & Chairman Domenic Carosa stated, "I am pleased to see the financial performance of the business improving across all key metrics. I am confident that moving forward we will continue to demonstrate to our loyal stakeholders that we are steadfast in our mission to build the bridge between the existing financial systems and the emerging, expanding digital asset world."

Banxa CEO Holger Arians said "We are very happy to announce these results. Over the previous three months we have been focused on improving the service and experience for our customers and expanding our capacity to service the rapidly growing demand. The industry is maturing, with greater infrastructure and interest. Our aim is to be at the forefront of this new stage of development."

The Company is also announcing a Zoom Investor Event on Thursday, May 27 at 4:30 ET detail below

Topic: Banxa Investor Call
Time: May 27, 2021 04:30 ET

Join Zoom Meeting
https://us02web.zoom.us/j/85058227028?pwd=WGFOaWVNbCsvV1RaY3VlcEZIeDN4UT09

Meeting ID: 850 5822 7028
Passcode: 038456
One tap mobile
[phone],,85058227028#,,,,*038456# US (New York)
[phone],,85058227028#,,,,*038456# US (San Jose)

Meeting ID: 850 5822 7028
Passcode: 038456
Find your local number: https://us02web.zoom.us/u/kek0pQHOvA 

Summary of financial results

• Revenue for the three months ended March 31, 2021, was AUD $21.0 M compared with AUD $1.3 M for the same period in 2020, an increase of 1,479%. Revenue for the nine months ended March 31, 2021, was AUD $ 28.4 M compared with AUD $4.6 M for the same period in 2020, an increase of 512%.
• Gross profit for the three months ended March 31, 2021, was AUD $6.0 M compared with AUD $0.8 M for the same period in 2020, an increase of 686%. Gross profit for the nine-months ended March 31, 2021, was AUD $ 8.2 M compared with AUD $1.5 for the same period in 2020, an increase of 454%.
• Adjusted earnings before interest, taxes, depreciation and amortization for the three months ended March 31, 2021, totalled AUD $1 M compared with a negative EBITDA of AUD $0.5 M for the same period in 2020.
• Net loss for three months ended March 31, 2021 totalled AUD $1.4 M compared with net loss of AUD $0.6 M for the same period in 2020. Net loss for nine months ended March 31, 2021, was AUD $2.3 M , compared with net loss of AUD $2.5 M for the same period in 2020.

Adjusted EBITDA is a non-IFRS financial measure that we calculate as net income (loss) before tax excluding depreciation and amortization expense, share based expense, unrealized gain on inventory, finance expense and listing expense. Adjusted EBITDA is used by management to understand and evaluate the performance and trends of the Company's operations. The following table shows a reconciliation of adjusted EBITDA to net income (loss) before tax, the most comparable IFRS financial measure, for the three and nine months ended 31 March 2021 and 2020:

	Nine months ended 31 March 2021	Nine months ended 31 March 2020	Three months ended 31 March 2021	Three months ended  31 March 2020
Loss before tax	$(1,079,542)	$(2,173,576)	$(171,497)	$(635,039)
Depreciation and amortization	25,418	464,608	9,243	154,869
Share based expense	1,218,501	-	1,117,860	-
Gain on fair value of inventory	(2,744,986)	-	(380,364)	-
Finance expense	580,826	-	399,123	-
Listing expense	2,690,513	-	-	-
Adjusted EBITDA	690,730	(1,708,968)	974,365	(480,170)

Investors Relations Agreement

The Company also announces that it has entered into an employment agreement with Mr. Liam Bussell, dated February 24, 2021 (the "Agreement"), pursuant to which Mr. Bussell will, as Head of Corporate Communications of the Company, be providing investor relations services to the Company for an indeterminate term, subject to termination in certain events. In accordance with the Agreement, the Company will pay Mr. Bussell an annual salary of AUD$145,000 per annum (gross) plus superannuation and has issued Mr. Bussell incentive stock options ("Options") to purchase up to 50,000 common shares ("Shares") of the Company for a period of 2 years. Each Option is exercisable at an exercise price of CAD$2.15 per Share, and will vest quarterly over a 24 month period.

The Company and Mr. Bussell are arm's length parties. The Agreement and grant of the Options remain subject to the approval of the TSX Venture Exchange.

ON BEHALF OF THE BOARD OF DIRECTORS

Per:  "DOMENIC CAROSA"
Domenic Carosa
Chairman (1-888-218-6863)

About BANXA

BANXA - Banxa Holdings Inc. (TSX-V:BNXA/OTCQX:BNXAF/FSE:AC00) is a Payment Service Provider (PSP) with a mission to build the bridge between traditional financial systems, regulation and the digital asset space. Our goal is to onboard the general public to digital currency by building a fully compliant payment infrastructure that enables simple and secure conversion of fiat currency to digital currency (eg. USD/CAD to BTC/ETH). Banxa has offices in Australia, the Netherlands and Lithuania. For further information go to www.banxa.com 

This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws.  Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. BANXA's statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of BANXA's control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties of the Company's business, including: BANXA's assumptions in making forward-looking statements may prove to be incorrect; adverse market conditions, including risks related to COVID-19 and risks that future results may vary from historical results. Except as required by securities law, BANXA does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.

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.

For Further Information, see www.banxa.com

SOURCE Banxa Holding Inc

Investor Relations: North America: [phone], International: [phone], Email: [email protected]; Lytham Partners, LLC, Ben Shamsian, New York/Phoenix, Email: [email protected]; Media Contacts: Liam Bussell, Head of Corporate Communications, Email: [email protected]

Related Links

https://banxa.com/