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TSX Venture Exchange: FGD
Frankfurt Stock Exchange: 1G5
TORONTO, May 2, 2017 /CNW/ - First Global Data ("First Global" or the "Company") is pleased to announce that it has released its 2016 year-end audited financial statements.
It is important to note that although a Canadian company whose market capitalization is calculated in Canadian dollars ("CAD"), the Company's operations are reported in United States dollars ("USD") and its financial statements are reported in USD.
The Company has demonstrated a turn-around into profitability in 2016 along with significant revenue growth, and an increase in capitalization.
The Company would like to highlight key items in these year-end financial results as follows:
Revenues for the year-end 2016 were USD $6,243,614 or CAD $8,271,879 as compared with 2015 year-end revenues of USD $895,560 or CAD $1,145,071. This represents a year-over-year increase in revenues of 597%
In 2016 the Company became profitable as indicated by the net operating income from operations.
The Company's cash flows before working capital changes for the year-end 2016, which is more indicative of the true profitability of the Company, was USD $1,885,291 or CAD $2,497,736 as compared with 2015 year-end cash losses before working capital changes of USD $3,750,637 or CAD $4,795,598.
This represents an improvement of USD $5,635,928 or CAD $7,293,334 and a significant turn-around from the Company's operating loss position in 2015 into profitability in 2016.
Going Concern Statement:
Although the Company's financials include a going concern statement, the health and well being of the Company is solid. Going concern statements according to IFRS standards take into consideration the Company's historical accumulated losses and working capital deficit. The Company believes that based on its 2016 results wherein the Company has become profitable, that it is now driving good incremental revenues, and with the improvement in its capital position which includes new capital of CDN $3 million closed in November 2016 and CDN $10 million closed in March 2017, that it is well positioned to execute its business plan on a going forward basis.
Subsequent Events - Balance Sheet Improvement:
In the first quarter of 2017 the Company made significant improvements to its balance sheet having extracted approximately USD $5.89 million or CAD $7.91 million of debt and having increased capitalization substantially as outlined above. The Company intends to continue its balance sheet improvement initiatives in 2017.
"We are very proud of the turn-around experienced in 2016 and we look forward to continued business growth in 2017 as revenues from the business deals announced are realized." said Nayeem Alli, the Company's CFO.
About First Global: (www.firstglobaldata.com)
First Global is an international financial services technology ("FINTECH") company. The Company's two main lines of business are mobile payments and cross border payments. First Global's proprietary leading edge technology enables the convergence of compliant domestic and cross border payments, shopping, Peer to Peer ("P2P"), Business to Consumer ("B2C"), and Business to Business ("B2B") payments. First Global enables its strategic partners and clients around the world with our leading edge financial services technology platform.
Neither TSX Venture Exchange Inc. ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities offered in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Forward Looking Information:
This news release contains "forward-looking information" within the meaning of applicable securities laws. Although First Global believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because First Global can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release. First Global undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of First Global, its securities, or financial or operating results (as applicable). First Global disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
SOURCE First Global Data Limited
For further information: Sonia Tomaz, Investor Relations, t: (416) 504-3813, e: firstname.lastname@example.org