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Goldmoney Inc. Reports First Quarter Financial Results, Announces Special Meeting of Shareholders
[August 31, 2015]

Goldmoney Inc. Reports First Quarter Financial Results, Announces Special Meeting of Shareholders


GoldMoney Inc. (formerly BitGold Inc.) (the "Company" or "GoldMoney") (TSX-V: XAU), a global, full-reserve and gold-based financial services business, today announced its financial results for the first financial quarter, ended June 30, 2015.

Management advises that results reflect a full quarter of operational activity for the period ended June 30, 2015, but of which only includes the first 56 days of business activity for the BitGold platform and excludes business activity for the GoldMoney platform acquired on July 20th, 2015.

"The results highlight the strong growth in the BitGold platform since our May 4th launch and an industry leading customer acquisition cost. We estimate a $25 all-in customer acquisition cost for the first 62,629 signups after adjusting for this quarter's non-cash and non-recurring expenses associated with going public and the GoldMoney acquisition. We expect this figure to remain stable for subsequent quarters as we optimize our traffic acquisition strategy and benefit from a larger mix of traffic due to the the viral adoption of the platform. We also expect to see average deposit per user figures inching higher over time, as can be seen in our key performance indicators (KPIs) released at the end of every month. These are early days for our company but the financial statements are an important confirmation of the type of business model we have designed, one that generates long-term recurring revenue fueled by variable-cost customer acquisition strategy. Gross sales per customer of approximately $45.00 far outpaces the all-in customer acquisition cost over 56 days of business activity, and we believe gross revenues can follow as we expand engagement features and optimize execution costs over the next 6 to 12 months as we complete the platform core. Ultimately, we believe that the long-run customer lifetime value will be far in excess of the customer acquisition costs we are incurring with our long-term capital," said Roy Sebag, GoldMoney CEO.

"We are pleased to present our first financial quarter as a public company, results that reflect the investment we make in our users as we prioritize long-term shareholder value. We are grateful for the substantial capital and support afforded to us by shareholders to achieve this mission, and we will continue to manage capital with prudence, transparency and integrity," said Josh Crumb, Chief Strategy Officer.

GoldMoney Inc. also announces that further to its acquisition of the intellectual property and operating subsidiaries of GoldMoney Network Limited announced July 20, 2015, the Company will hold a special meeting of shareholders on September 29, 2015 to provide for the election of directors, including GoldMoney Network Limited nominees Mahendra Naik, James Turk, and Hector Fleming, and other corporate matters. Financial results for the business acquired from GoldMoney Network Limited will be consolidated and reported in the Company's financial statements commencing for the second quarter ended September 30, 2015.

First Quarter Financial

  • gold sales and transaction revenue of $2,856,937;
  • total gross revenue gain of $13,396
  • net loss from operations of $2,867,928;
  • total comprehensive loss of $2,842,969;
  • estimated adjusted loss of $1,535,410 after netting out non-cash share payments, one-time public listing expenses and non-recurrng professional fees associated with regulatory licensing and strategic due diligence.
  • basic and diluted loss per share of $0.08; and
  • total cash and cash equivalents, gold inventory, short-term investments and short-term marketable securities held for sale of $28,204,924 (excluding cash and bullion acquired as part of the GoldMoney transaction and reflecting only partial exercise of outstanding in-the-money warrants)



Operational Highlights

During the first quarter, the Company completed its going-public transaction by way of amalgamation, launched its BitGold platform on May 4, 2015, and extended its service to residents of the US and US territories on Jun 26, 2015.


During the quarter, the Company acquired 62,629 users. As of June 30, 2015, customer gold in vaults, defined as total segregated and allocated customer gold under safekeeping, totalled 63,555 grams ($2,993,400).

Total transaction volume, defined as deposits, redemptions and payments on the BitGold platform, for the three months ended June 30, 2015 totalled 78,883 grams ($3,479,889).

This news release should be read in conjunction with GoldMoney's interim financial statements and the accompanying notes as at and for the quarter ended June 30, 2015, together with the related Management Discussion and Analysis. Those documents have been filed with certain securities regulatory authorities in Canada and are available under GoldMoney's profile at www.sedar.com.

About GoldMoney Inc. (formerly BitGold Inc.)

GoldMoney Inc. is a global, full-reserve and gold-based financial services business. GoldMoney provides financial services as a trusted, limited third-party, combining the unique attributes of gold with technology driven innovation. GoldMoney Inc. owns and operates two client facing services through GoldMoney® and BitGoldTM. Through GoldMoney® the company offers precious metals custody, trading and execution, wealth management and research to individual investors and institutions. Through BitGold™ the company operates a self-directed savings platform and payments network allowing individuals and businesses to make or receive online, in-store or mobile payments. GoldMoney Inc. has over 250,000 customers from over 200 countries and $1.5 billion in client assets under administration. GoldMoney is regulated by the Jersey Financial Services Commission (JFSC) as a Money Services Business. The JFSC is the main supervisory body that oversees and regulates Jersey's large financial services industry. For more information on BitGold, visit bitgold.com. For more information on GoldMoney, visit ir.goldmoney.com.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy of this release.

Forward-Looking Statements

This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. Any statements that involve discussions with respect to 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" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward looking information and are intended to identify forward-looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: risk factors relating to the Company's limited operating history; future capital needs and uncertainty of additional financing; the competitive nature of the industry; unproven markets for the Company's product offering; volatility of gold prices & public interest in gold investment; lack of regulation and customer protection; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology change; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; foreign currency and gold trading risks; use and storage of personal information and compliance with privacy laws; use of the Company's services for improper or illegal purposes; global economic and financial market conditions; uninsurable risks; and those risks set out in the Company's public documents filed on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.


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