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by Stockwatch Business Reporter
The TSX Venture Exchange closed up 12.75 points to 684.71 Friday, ending the week up 51.69 points. Sayan Navaratnam's shell graduate and ride-sharing app developer, Facedrive Inc. (FD), gained $3.66 to close at $24.91 on 821,800 shares. It has completed its acquisition of Foodora Canada for $500,000. Foodora Canada, which has an app for ordering food for delivery from third party restaurants, filed for bankruptcy in April with $4.7-million worth of debt. Facedrive has the money to pay off Foodora Canada's debts. Since mid-June, Facedrive has raised $9.1-million at $9. It expects to sell more shares until next week, when it closes the final tranche of its private placement. When Facedrive announced this financing in mid-June, its stock was at $9.97. The stock has climbed from about $4 since May, when the company first announced its plan to acquire Foodora Canada.
Facedrive is a Toronto firm with a ride-sharing app, similar to Uber. It also has a food delivery app called Facedrive Foods, which is similar to Uber Eats and Foodora. The company has not yet said whether it plans to combine Foodora Canada and Facedrive Foods, or operate them separately. Although ride-sharing and food delivery apps are popular, their operators are largely unprofitable. Uber Technologies Inc. (UBER: $33.14 (U.S.)) lost $8.5-billion (U.S.) on revenue of $14.14-billion (U.S.) in 2019. The loss included $4.6-billion (U.S.) worth of stock-based compensation. Grubhub Inc. (GRUB: $71.87 (U.S.)), a food delivery company, lost $27.7-million (U.S.) on revenue of $341.3-million (U.S.) in the same year. As for Facedrive, it lost $6.94-million on revenue of $599,100 in 2019. Nevertheless, because Facedrive has proven capable as a money-raiser, it ended that year with working capital of $3.4-million (including $3.79-million cash) and a manageable long-term debt of $334,000 (owed to related parties). In addition to its ride-sharing app and food delivery app, Facedrive has a COVID-19 contact-tracing app called TraceScan, a trivia games app called HiQ and an e-commerce website called Facedrive Marketplace.
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