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Defi Technologies Inc
Symbol DEFI
Shares Issued 210,967,952
Close 2021-11-15 C$ 3.99
Recent Sedar Documents

Defi Technologies loses $2.4-million in Q3

2021-11-16 11:51 ET - News Release

Mr. Russell Starr reports

DEFI TECHNOLOGIES Q3 2021 FINANCIAL RESULTS WITH TOTAL REVENUE UP 214% YEAR-OVER-YEAR TO$10.0M

Defi Technologies Inc. has released its financial results for the three- and nine-month periods ending Sept. 30, 2021 (all amounts in Canadian dollars, unless otherwise indicated).

Key highlights

  • Achieved record $374-million (U.S.) assets under management (AUM) in fully owned subsidiary Valour Inc., which is responsible for the company's portfolio of exchange-traded products (ETPs);
  • Launched Solana ETP on Nordic Exchange;
  • Listed Valour ETPs on the Frankfurt Stock Exchange;
  • Earned 539,000 Shyft tokens since launch of initial Shyft Network node to the end of Sept. 30, 2021;
  • Valour hired former BlackRock director as its chief operating officer;
  • Expanded the company's executive team to focus on growth in European and global markets as well as new product launches;
  • Launched world's first Uniswap ETP, in October, 2021.

"We continue to see strong demand and inflows into our Valour business," stated Russell Starr, chief executive officer of Defi Technologies. "Given that we only have six ETPs currently, the growth in AUM at Valour has been exceptional. As we look to launch additional innovative ETP's related to crypto, Defi, gaming and the metaverse, we expect this growth to continue at a rapid pace."

ETPs/Valour

The company's ETP business Valour has grown its AUM to $374-million (U.S.) as of Nov. 8, 2021. Since acquiring 100 per cent of Valour on April 1, 2021, total revenue was $6-million and net income of $2.3-million.

Liquidity

The company maintains a very strong liquidity position, with cash of $10.7-million, total assets of $372-million and working capital of $17.8-million.

Financial performance

For the three months ended Sept. 30, 2021

  • Total revenues of $8.6-million;
  • Net loss of $2.4-million;
  • Adjusted net income of $2.4-million excluding share-based compensation expense of $4.8-million;
  • New revenue lines including node validator revenue of $545,601, management fees on new Valour ETP of $333,070 and increasing staking and lending income of $859,644.

For the nine months ended Sept. 30, 2021

  • Total revenues of $10-million;
  • Net loss of $21.5-million;
  • Adjusted net loss of $2.4-million excluding acquisition costs relating to DEFI Holdings Inc. of $6-million and share-based compensation expense of $13.1-million;
  • New revenue lines including node validator revenue of $545,601, management fees on new Valour ETP of $333,070 and increasing of staking and lending income of $925,600.

"Considering our size and rapid growth, generating adjusted net income of $2.4-million in Q3 2021 is a remarkable achievement," continued Mr. Starr. "We are operating from a position of strength that should support continued strong growth in the periods ahead as we continue to expand our operations and cater to the significant demand from public market investors, institutional private investors and crypto-native investors."

Shareholder call

The company will conduct a shareholder call on Wednesday, Nov. 17, 2021, at 12 p.m. EST to discuss its strong financial performance for the three-month period ending Sept. 30, 2021.

Executive chairman and chief executive officer Mr. Starr will present the webcast.

For dial-in access:

Dial-in: 1-669-900-6833

Meeting ID: 99435225427

Pass code: 754018

About Defi Technologies Inc.

Defi Technologies is a technology company bridging the gap between traditional capital markets and decentralized finance. The company's mission is to expand investor access to industry-leading decentralized technologies which it believes lie at the heart of the future of finance. On behalf of the company's shareholders and investors, it identifies opportunities and areas of innovation, and builds and invests in new technologies and ventures in order to provide trusted, diversified exposure across the decentralized finance ecosystem.

We seek Safe Harbor.

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