Mr. Mark Binns reports
NETCOINS ANNOUNCES STRATEGIC REVIEW
Netcoins Holdings Inc. will be undertaking a strategic review of the company's cryptocurrency business model and direction. The company has observed that publicly traded cryptocurrency companies, regardless of their business models, are not receiving fair valuations and are not creating incremental shareholder value. While the Netcoins operating subsidiaries are generating revenue, and advancing on their business plans, the Netcoins stock is underperforming the expectations of the board due to overall sector weakness and the fact that the business is currently not profitable and may require significant additional capital to develop the business.
The board is currently reviewing options, including but not limited to, divestiture of the Netcoins operating business. There is no certainty of achieving a sale of the company's operating business given the current state of the sector. The public company maintains a healthy cash balance of approximately $4.5-million, positive net working capital, no debt and believes shareholder value can be increased by reinvesting its capital in other well-established sectors. The company expects further announcements to be made and any subsequent decision shall be subject to regulatory approval.
About Netcoins Holdings Inc.
The company is in the business of developing software to make the purchase and sale of cryptocurrency easily accessible to the mass consumer and investor through brokerage services.
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