CoinSmart Rejects Notice from Coinsquare Ltd. and Provides Corporate Update
TORONTO, Jan. 17, 2023 /CNW/ - CoinSmart Financial Inc. ("CoinSmart" or "CFI") (NEO: SMRT) (FSE: IIR), a leading Canadian headquartered crypto asset trading platform, announces that it has rejected the notice previously delivered by Coinsquare Ltd. ("Coinsquare") purporting to terminate the Share Purchase Agreement dated September 22, 2022 between CoinSmart and Coinsquare respecting the sale of all of the issued and outstanding shares of Simply Digital Technologies Inc., being CoinSmart's wholly-owned operating subsidiary (the "Share Purchase Agreement"), on the basis that it is invalid and without merit. CoinSmart has written to Coinsquare to advise that the notice is invalid and that it expects Coinsquare to close the transaction on the terms set out in the Share Purchase Agreement.
CoinSmart considers that Coinsquare remains bound by the Share Purchase Agreement and intends to hold Coinsquare to its obligations under the Share Purchase Agreement. If necessary, CoinSmart intends to vigorously contest Coinsquare's purported termination of the Share Purchase Agreement and to pursue available remedies to enforce its contractual rights under the Share Purchase Agreement, including, among other things, the right to specific performance or the right to monetary damages.
CoinSmart has met and expects to be able to meet all its requirements under the Share Purchase Agreement. Coinsquare's invalid attempt to terminate the Share Purchase Agreement appears to be the result of internal matters concerning Coinsquare and not as a result of anything to do with CoinSmart or its business.
CoinSmart is also aware of recent market rumors concerning a transaction involving Coinsquare and another party and is continuing to monitor the situation and any impact it may have had or may have on the agreed upon transaction with Coinsquare.
CoinSmart is also pleased to announce that on an unaudited basis, its preliminary gross revenues for the quarter ended December 31, 2022, increased to $3.5 million representing a sequential quarter-over-quarter increase of 50% from the quarter ended September 30, 2022. With the increase in sequential revenues and management's continued focus on resource optimization and revenue generation, cash flow was approximately break-even for the quarter ending December 31, 2022 (prior to one-time expenses related to the transaction with Coinsquare ). As of January16, 2023 CoinSmart also held proprietary cash and crypto assets in an amount of approximately $10 million and has no debt.
Justin Hartzman mentions: "Trading below our cash value and being a leader in revenue generation in the Canadian market, while maintaining minimal cash burn in this tremulous market is quite an achievement. We are working hard to continue to build revenues, maintain margins, and limit cash burn. We have new products to bring to market, new clients being onboarded to SmartPay and look forward to scaling our retail operations worldwide, including our OTC business."
CoinSmart is a leading Canadian-headquartered crypto asset trading platform dedicated to providing customers with an intuitive way for buying and selling digital assets, like Bitcoin and Ethereum. CoinSmart is one of the few crypto asset trading platforms in Canada to be registered as a securities dealer and marketplace with the Ontario Securities Commission. CoinSmart is also one of the first Canadian headquartered trading platforms to have an international presence, accepting customers across 40+ countries at a time when the digital asset industry continues to rapidly expand.
CoinSmart further builds on its mission to make cryptocurrency accessible by providing educational resources tailored to every level of cryptocurrency knowledge and unparalleled 24/7 omni-channel customer support. Offering instant verification, industry-leading cold wallet storage, advanced charting with order book functionality and over-the-counter premium services, CoinSmart ensures every client's needs are met with the highest level of quality and care. For more information please visit https://www.coinsmart.com/.
Cautionary Note Regarding Forward-Looking Information and Other Disclosures
This press release contains statements that constitute "forward-looking information" ("forward-looking information") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information. In disclosing the forward-looking information contained in this news release, CoinSmart has made certain assumptions. Although CoinSmart believes that the expectations reflected in such forward-looking information are reasonable, it can give no assurance that the expectations of any forward-looking information will prove to be correct. Known and unknown risks, uncertainties, and other factors may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such factors include but are not limited to: regulatory approvals. Accordingly, readers should not place undue reliance on the forward-looking information contained in this news release. Except as required by law, CoinSmart disclaims any intention and assumes no obligation to update or revise any forward-looking information to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking information or otherwise.
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SOURCE CoinSmart
For further information please contact: CoinSmart, Justin Hartzman, Chief Executive Officer, Email: [email protected], Tel.: 1.647.923.7678
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