Date Online: 2021-02-26
SAINT-HUBERT, Quebec, Feb. 25, 2021 (GLOBE NEWSWIRE) -- Urbanimmersive Inc. (“Urbanimmersive,” the “Company” or “UI”) (TSV-V UI) (OTCQB: UBMRF) today announced select financial results and presents business highlights for its the first quarter of 2021 ended December 31, 2020. The financial statements and related management’s discussion and analysis (“MD&A”) can be viewed on SEDAR at https://www.sedar.com/ .
- For its first quarter of 2021 (Q1-21), the Company generated a gross merchant volume (‘GMV’) of $ 2,325k compared to $1,599k for Q1-20, a 45% increase;
- For Q1-21, the Company generated revenues of $897k compared to $601k for Q1-20, a year-over-year increase of $315k or 49.3%;
- For Q1-21, EBITDA totaled $75k compared to $14k for Q1-20, an improvement of $61k;
- During the quarter, the Company finalized the development of its innovative product, UiMeet3D which was launched in early January 2021;
- During the quarter, the Company diversified its activities geographically with the creation of a subsidiary in Mexico and the signature of distribution agreements in Indonesia and Australia;
- During the quarter, the Company begins trading on the OTCQB venture market in the United States.
SELECTED FINANCIAL INFORMATION
Dec. 31, 2020
Dec. 31, 2019
|In thousands $||In thousands $|
|Gross Merchant Volume (GMV) *||2,325||1,599|
|COGS and direct charges||292||31|
|Gross margin (before amortization)||605||570|
|Other expenses ***||1 198||197|
|Net income (loss)||(1 332)||(330 )|
|Basic net income (loss) per share||(0.01)||(0.00)|
* GMV represents the value of all transactions performed by merchants using Urbanimmersive’s business solutions for invoicing and/or collecting payments for their services.
** Q1-21 EBITDA is adjusted for non-recurring subsidiary setup costs ($17k) and legal fees incurred for the Company’ listing on the OTCQB ($17k).
*** Q1-21 increase is explained by the change in fair value of embedded derivatives on convertibles debentures (+$531k) and warrants (+$157k) as well the increase in theoretical interests (+$338k) as an adjustment upon the conversion of $1.5m of convertible debentures into shares.
"During the last quarter, we improved once again our key financial metrics compared to the previous year, despite the pandemic which is still very active, whether in terms of gross merchant volume, revenues, EBITDA, cash flows from operating activities or liquidities. In addition, we were able to significantly reduce our debt in the quarter upon the conversion of $1.5m of convertible debentures which provides us additional financial flexibility to continue executing our business plan. Finally, we are pleased to have completed our listing on the OTCQB venture market in the United States which should allow us to broaden our U.S. investor base while improving our visibility and ultimately creating shareholder value ", said Simon Bedard, Chief financial officer of Urbanimmersive.
" During the most recent quarter, we finalized the development of our innovative and unique interactive 3D product, UiMeet3D. We are pleased to be the first to allow real estate agents to use this interactive 3D tour to support their clients looking for properties. We believe this innovative product will eventually become the standard in the 3D tour market and a significant growth driver for Urbanimmersive which is well positioned to become the predominant brand of interactive videoconferencing solutions in the market. In addition, we continued our strategy of distributing our solutions internationally by expanding our activities in promising markets such as Mexico, Indonesia and Australia", said Ghislain Lemire, President and CEO of Urbanimmersive.
CONVERSION OF CONVERTIBLE DEBENTURES
The Company is pleased to have agreed in writing with the majority of its debenture holders to convert their debentures into common shares of the Company, as soon as practically possible, for a total nominal value of $2.3m (conversion price of $0.125). As a result of those conversions, the interest savings shall equal $230k/year with a reduction of the convertible debentures outstanding to $0.8m.
“As demonstrated by these commitments, we appreciate the great support of our debtholders and their long-term commitment to our success. With the significant reduction of our debt, we look forward to capitalizing on both organic growth and accretive strategic acquisition opportunities we have identified”, stated Simon Bedard, CFO of Urbanimmersive.
The Company has also issued 262,210 shares at a price of $0.215 to some Officers and employees as variable compensation covering the most recent quarter and subject to a 4-month hold period from the date of issuance.
TSX Venture Exchange has not reviewed this press release and has neither approved nor disapproved the contents of this press release.
Investor Conference Call
UI will be hosting a conference call to discuss those financial results and answer questions at 1p.m. (ET) on February 25, 2021. To participate to the conference call, please dial toll free number (877) 620-1735 or international number (470) 414-9786 five to 10 minutes before the call is scheduled to begin. A replay will be available for 7 days from February 25, 2021 to March 4, 2021. The numbers to hear the conference replay are (855) 859-2056 or (404) 537-3406. Conference ID for the conference call and the replay is 3293955.
Urbanimmersive is a SaaS business management solution that provides mission-critical solutions to visual content providers serving the real estate residential, commercial, construction, and local business markets. Urbanimmersive’ platform helps customers to increase operational productivity and delivering the full potential of visual content creations through leading-edge websites builder tool, AI-backed image indexing, robust file transfer systems, and interactive visual technology solutions. The firm's core technology is a 3D emulator powered by a visual content recognition post-production algorithm that delivers online and offline alternatives to traditional 3D engines for the creation of immersive digital environments. Learn more at urbanimmersive.com .
Caution of Forward-Looking Statements
Certain statements in this news release, other than statements of historical fact, are forward-looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management estimates or opinions change.
For more information, please contact:
President & CEO
514-394-7820 X 202
Simon Bédard, CA, CPA, CFA, MBA
Chief Financial Officer
514 394-7820 X 224