GlobalBlock Reports Q3 Results - Sees Significant Revenue Increase in Q3 2021 Period
- GlobalBlock Digital Asset Trading provides highlights from Q3 results -
- Full results filed and available at www.sedar.com -
London, United Kingdom and Vancouver, British Columbia--(Newsfile Corp. - November 30, 2021) - GlobalBlock Digital Asset Trading Limited (TSXV: BLOK) (OTC Pink: BLVDF) (FSE:BD4) (the "Company" or "GlobalBlock") filed its unaudited Q3 2021 financial statements and management discussion and analysis, and is pleased to announce in Q3 2021 it recorded three and nine month revenue of $838,433 (all amounts in Canadian dollars unless otherwise indicated). These are the first financial statements to include results from the Company's wholly owned operating subsidiary, GlobalBlock Limited ("GlobalBlock UK"), which the Company acquired in July 2021.
Following a strategic review in 2019 and its subsequent acquisition of GlobalBlock UK, the business has undergone a transformation resulting in a significant ramp up in operations and revenue. Q3 incurred one-off transactional costs that relate specifically to the business combination, contributing to a loss for the period.
2021 Year to Date Highlights:
- Earned three and nine month revenues of $838,433, for the period from the acquisition of GlobalBlock UK (July 2021) until September 30, 2021 and a three and nine month loss of $3,238,781 and $3,682,889 respectively, inclusive of a one time charge for transaction costs of $2,288,572. The transaction costs were primarily related to the fair value of the finders' shares issued pursuant to the acquisition of GlobalBlock UK.
- As at September 30, 2021, the Company had $6.1 million in working capital (December 31, 2020 - $4.3 million) and cash on hand of $5.7 million (December 31, 2020 - $4.4 million).
- Continued expansion of GlobalBlock UK's team with senior hires across technology, marketing and sales to support current and future operations.
- GlobalBlock UK continues to increase its offering of digital assets where clients have the ability to trade across GlobalBlock UK's combined service offerings of telephone, online trading platform and mobile app, increasing from 80 digital assets in October 2021 to over 100 in November 2021.
GlobalBlock UK's operations from 2020 to 2021 have seen significant growth with revenue for calendar 2021 increasing 612% over revenue for calendar 2020, driven by increased clients and high trading volumes. The revenue was achieved without any marketing during the period, as word of mouth led to an increase in GlobalBlock UK account holders and trading activity.
The significant increase in revenue reflects the broader rise in adoption of cryptocurrency by individuals and corporations across multiple industries, most notably in financial services. GlobalBlock, through the operations of GlobalBlock UK, is benefiting from the broader acceptance of digital assets as a new emerging asset class and current trading conditions remain strong.
Rufus Round, CEO at the Company, said:
"The speed with which the GlobalBlock UK business combination has yielded meaningful revenues has exceeded our expectations and we are delighted to see the beginnings of a fast growing digital asset trading and services provider. With a highly experienced team that has a track record of success in regulated financial services, combined with a market that is growing exponentially, we are excited about the foundation that's been built so far and what the future holds."
"Since Q3 2021, the business has seen trading continue to take a similar trajectory. There is a great deal of activity and the pipeline for sales, new products and services is full. In accordance with our commitment to regulation, security and transparency, we are looking forward to the launch of a new wholly owned mobile app scheduled for Q1 2022 and scaled up marketing efforts."
ABOUT THE COMPANY
GlobalBlock Digital Asset Trading Limited is a publicly traded holding company (TSXV: BLOK) whose wholly owned subsidiary, GlobalBlock Limited (https://www.globalblock.co.uk), is a United Kingdom based digital asset broker that provides a personalised telephone brokerage service, trading platform and mobile app. Established in 2018 by an experienced team of financial services professionals, GlobalBlock Limited acts as a trusted agent serving the digital asset needs of individuals, corporates, institutional financial firms and intermediaries, providing best execution trading and safe custody of digital assets.
GlobalBlock Limited has been temporarily registered under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 as a cryptoasset business until 31st March 2022, pending the determination of the application by the Financial Conduct Authority. At this time, GlobalBlock Limited only accepts United Kingdom and Ireland resident clients or customers for its digital asset broker or trading services.
For further information please contact the Company at:
Rufus Round, CEO
c/o 65 Curzon Street, London, W1J 8PE, United Kingdom
Tel. +00 44 20 3286 2904
https://globalblock.co.uk/ and http://www.globalblockdigital.com/
Citigate Dewe Rogerson
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information set out in this news release constitutes forward-looking statements or information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. In particular, this news release contains forward-looking statements in respect of among other things, the continued and successful development of the businesses of each of the Company and GlobalBlock Limited, the ability of GlobalBlock Limited to obtain the applicable regulatory approvals (including permanent registration with the Financial Conduct Authority in the United Kingdom) to continue to conduct its business, the completion of and timing of release of the Company's wholly owned app, and other information concerning the intentions, plans, future action and future successes of the Company, and its businesses, results, technologies and products described herein. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information provided or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risk factors set forth in the Company's most recent management's discussion and analysis, a copy of which is filed on SEDAR at www.sedar.com, and readers are cautioned that the risk factors disclosed therein should not be construed as exhaustive. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.
Readers are cautioned that past performance is not indicative of future performance and current trends in the business and demand for digital assets may not continue and readers should not put undue reliance on past performance and current trends.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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