BANXA Provides Business Update, Integrates with Animoca Brands, Worldline, Ledger, and Management Initiates Open Market Buy

TORONTO, Sept. 25, 2023 (GLOBE NEWSWIRE) — Banxa Holdings Inc. (TSXV: BNXA) (OTCQX: BNXAF) (FSE: AC00) (“Banxa” or the “Company“) today provides shareholders an update on the Company’s progress over the recent weeks.

Holger Arians, CEO of Banxa Holdings Inc., stated, “Banxa is seeing continued success from many key business wins, highlighted by new blue-chip partners attracted to Banxa’s leading payments infrastructure. Looking ahead, we see long-term upward trajectory thanks to our local regulatory and compliance strategy that we have aggressively pursued over the last number of years in anticipation of this next stage of compliant Web3 growth.”

GENERAL BUSINESS UPDATES

Banxa continues to maintain a solid financial trajectory in the current bear market conditions and has set achieving cash flow breakeven as its primary objective. Some unaudited, preliminary financial highlights include:

• Unaudited Total Transaction Volume (TTV) of approximately AUD $73.2M (USD $46.4M) and AUD $74.8M (USD $47.4M) in July and August 2023, respectively.
• Net take rate has improved to now be consistently sitting above 3%, due to increased operational efficiencies, compared to 1.8% in FY22
• Total liquidity and cash position at the end of August 2023 stood at AUD ~$10.1M (USD ~$6.5M) and AUD ~$5.1M (USD ~$3.3M), respectively

Furthermore, the Company is pleased to update shareholders on its considerable progress in growing its run rate total transaction volume by activating new major partnerships with noteworthy partners, and other business updates:

• Ledger, a major, global non-custodial wallet with millions of users has integrated Banxa to offer their users on-ramping services as of September 12th.
• Web3 gaming conglomerate Animoca Brands has integrated Banxa’s NFT Checkout and crypto payments infrastructure to their Australian Football League (AFL) Mint. The partnership went live on Friday 22nd of September.
• In August, one of the world’s largest payments and transactional service providers, Worldline, integrated Banxa successfully to its Payment Orchestration, allowing all Worldline merchants to be able to activate Banxa’s global crypto payment infrastructure instantly. Banxa is now working with Worldline to activate their merchants and initiate new partnerships together. Find out more here.
• Banxa now holds 32 Money Transmitter Licences (MTLs) in the USA, and is expecting 7 more MTLs to be granted in 2023. Banxa does not require MTLs to operate in 10 states / territories. Accordingly, Banxa is already capable of servicing 42 states / territories in the USA.

Banxa also continues to deepen its relationships with key partners such as MetaMask, one of the largest digital wallets with more than 20 million users, to launch new features aimed to increase user experiences, conversion rates, and ultimately transaction volumes for both parties. An example of this is the recent exclusive rolling out of 1-click ApplePay on MetaMask. Read more in industry leading media publication, Decrypt, here.

MANAGEMENT MARKET BUY

The Company is announcing that members of the Management team including Domenic Carosa (Chairman), Holger Arians (CEO), Zafer Qureshi (Director and Head of Corporate Affairs), Patrick Maguire (Chief Financial Officer), Richard Mico (U.S. CEO and Global Head of Legal, Risk & Compliance), Gregor Cooney (Chief Marketing Officer), Damien Di Cosmo (Head of People & Culture) and Phil Brown (US Chief Compliance Officer) will participate in a round of open market share purchases over the coming days. These purchases are being made in adherence with Banxa’s company share trading policies, and they have been pre-approved by the Chairman of the Board of Directors. Participating team members will file reports with Sedi in a timely manner.

ADDITIONAL BUSINESS UPDATES

To support Banxa’s growing transaction volumes which require working capital to fulfil orders (where settlements to Banxa by payment service providers are delayed in some instances by up to four days), the Company is pleased to have continued support from its current and new working capital facility providers. These parties have entered into an unsecured credit agreement:

Qureshi Family Office

• Alam Group of Companies Inc. (“Qureshi Family Office”), Zafer Qureshi’s Family Office, has agreed to provide CAD $500,000 loan to the Company’s wholly owned subsidiary, BTC Corporation Pty Ltd., with the following terms:
  • Interest rate of 25% APR, calculated daily, and paid in cash on a monthly frequency
  • Beginning on September 7, 2023 with a term of 6 months

Buzzworks

• Buzz Developments Pty Ltd. (“Buzzworks”) has agreed to extend the loan term to July 10, 2024, for a $1.5M USDT/C loan with the Company’s wholly owned subsidiary, BTC Corporation Pty ltd., with a 25% APR, paid in cash on a monthly frequency

HB Super Holdings Pty Ltd

• HB Super Holdings Pty Ltd has agreed to extend the loan term to February 29, 2024, for USD $266,069 loan with the Company’s wholly owned subsidiary, BTC Corporation Pty Ltd., with a 25% APR, paid in cash on a monthly frequency

Ari Last

• Ari Last, a team member of Banxa, has agreed to extend the loan term to November 14, 2023, for 400,000 USDT loan with the Company’s wholly owned subsidiary, BTC Corporation Pty Ltd., with a 25% APR paid in cash on a monthly frequency

CONTACTS

Investors:
Zafer Qureshi

investors@banxa.com

Media:
Wachsman
Ethan Lyle
banxa@wachsman.com

ENDS

ON BEHALF OF THE BOARD OF DIRECTORS
Per: “Zafer Qureshi”
Zafer Qureshi = Director and Head, Corporate Affairs, +1 416-347-4192

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

This press release contains statements including “forward-looking information” (“Forward-looking statements”). Forward-looking statements in this news release include statements regarding the date of the Meeting. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company will hold the Meeting on the expected date. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others that the Company will hold the Meeting on the expected date. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.