TORONTO–(BUSINESS THREAD)–Ether Capital Corporation (“Ether Capital” or the “Company”) (NEO: ETHC) announces its financial results for the three and six month period ended June 30, 2022:
The total value of Ether and Staked Ether held by the company was $58.6 million compared to $180.5 million at the end of the previous quarter on March 31, 2022, including a cash of 3 $.8 million ($4.2 million at March 31, 2022). The company’s total asset value was $67.4 million compared to $193.2 million on March 31, 2022. The company’s total shareholders’ equity was $66.2 million dollars compared to $192.7 million at March 31, 2022. The company posted revenue for the quarter of $1.08. million and operating expenses of $1.13 million compared to $1.2 million and $0.8 million respectively for the quarter ended March 31, 2022. Net loss after tax , after incorporating non-operating and intangible charges of $58.9 million, was $58.45 million, or $1.74 per share, primarily attributable to the impairment recognized in revenue from digital intangible assets of the society. Net book value per share was $1.96 compared to $5.74 as of March 31, 2022.
The company’s revenue of $1.08 million for the quarter included consulting revenue of $0.393 million ($843 million year-to-date) from Purpose Investments related to its crypto ETFs (BTCC i ETHH) and $0.687 million ($1.4 million to date) of Staked Ether Rewards, which have not been redeemed since inception. Staked Ether’s gross return was approximately 4.65% during the second quarter and any future payouts from Staking Rewards would generate Canadian dollars to fund operations and investments. Advisory revenues remain under pressure due to the impact of market volatility in ETFs. Operating expenses have increased year over year primarily related to salaries and benefits with the addition of talent in recent months. Details about these results and developments are included in the company’s financial statements and Management’s Discussion and Analysis (MD&A).
“The second quarter was extremely difficult for all industry participants and I am pleased that Ether Capital was able to avoid the difficult conditions endured by others. Our liquidity puts us at a competitive advantage at a time when other companies in the industry they are experiencing financial headwinds,” said Brian Mosoff, CEO of Ether Capital. “Our plan is to continue generating returns by staking our Ether and using the rewards to grow our business. Current market conditions have highlighted the need to build quality infrastructure and this is exactly where we want to be. We are also very We are optimistic about Ethereum’s transition to Proof of Stake and believe that the upcoming early merger this fall will spark a new wave of enthusiasm for the protocol from both institutional and retail investors.
“While we generated a modest pretax operating loss of approximately $0.05 million during the quarter, our cash resources of $3.8 million as of June 30 and the lack of external debt they provide financial flexibility,” said Ian McPherson, president and chief financial officer of Ether Capital. “The main decline in asset value is attributable to the decline in the price of Ether from US$3,284 on March 31 to US$1,020 on June 30, a decrease of 69% over the quarter. The price of Ether is volatile and the company is bullish on its very strong mid-term price appreciation.”
Ether Capital’s portfolio company Wyre also entered into an acquisition agreement with Bolt, a leading US checkout and shopping network company, in the second quarter of 2022. Details of the transaction still they are not public. The transaction is expected to close before the end of 2022 and is subject to multiple regulatory approvals and customary closing conditions.
The main digital assets held by Ether Capital as of June 30, 2022 are summarized below:
To access the unaudited interim financial statements for the quarter ended June 30, 2022, see the Company’s website at http://ethcap.co/. The Company’s unaudited interim financial statements, including the MD&A, have been filed with the System for Electronic Document Analysis and Retrieval (“SEDAR”) and are available on the Company’s profile at www.sedar.com.
The company will host a webinar on August 15, 2022 at 11:45 a.m. ET to review its second quarter financial results, which you can register for by by clicking here. Ether Capital CEO Brian Mosoff and President and CFO Ian McPherson will also discuss the importance of Ethereum’s transition to Proof of Stake (the Merger) and what impact this fundamental update will have on shareholders.
About Ether Capital Corporation
Ether Capital (NEO: ETHC) is a leading public technology company with the long-term goal of becoming a central trading and investment hub for the Ethereum ecosystem. The company has invested most of its balance sheet in Ethereum’s native utility token “Ether” as a core strategic asset and yield-generating instrument. The company is focused on building an institutional-grade financial infrastructure that supports the Ethereum blockchain and delivers corporate value. Ether Capital’s management team and Board of Directors are comprised of crypto-natives, leading venture capitalists and capital markets experts, which uniquely positions the company to identify and capitalize on opportunities in the ecosystem of digital assets. For more information, visit http://ethcap.co.
The content of this document is for informational purposes only and is not provided in the context of an offer of any securities described herein, nor is it a recommendation or solicitation to buy, hold or sell any security. The information is not investment advice, nor is it tailored to the needs or circumstances of any investor. The information contained herein is not, and in no way should be construed as, an offering memorandum, prospectus, advertisement or public offering of securities. No securities commission or similar regulatory authority has reviewed this document and any statement to the contrary is a violation. The information contained in this document is believed to be accurate and reliable, but we cannot guarantee that it is complete or current at all times. The information provided is subject to change without notice and neither Ether Capital Corporation nor any of its affiliates will be held responsible for inaccuracies in the information presented.
Non-GAAP measures
The Company’s condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this press release, the company discloses its gross asset value and gross value per basic common share, which are non-GAAP financial measures. These non-GAAP measures are not defined by IFRS, do not have a standardized meaning and may not be comparable to similar measures presented by other issuers. The Company has presented non-GAAP measures as management believes they are relevant measures of the value of the Company’s underlying assets. Non-GAAP measures should not be considered as alternatives to the information set forth in the company’s financial statements.
Prospective information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about the Ethereum ecosystem. The Company cautions the reader not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Generally, but not always, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “expects”, “budget”, “scheduled” “estimate “, “forecasts”, “intends”, “on pace”, “anticipates” or “does not anticipate”, “believes” and similar expressions or indicate that certain actions, events or results “could” ,” “would”, “should of”, “could” or “will be achieved”, will occur or will be achieved.
Forward-looking statements are based on information available to management at the time they are made, management’s current plans, estimates, assumptions, judgments and expectations. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause the company’s actual results, level of activity, performance or achievements to differ materially from those expressed or implied by such forward-looking information. These risks and uncertainties include, but are not limited to: general business, economic, competitive, geopolitical, technological and social uncertainties; Ether market volatility, uncertainties regarding the development and acceptance of blockchain technology (including Proof of Stake and Ethereum 2.0), and the Ethereum platform and the timing and expected impact of network upgrades Ethereum, the timing and terms of the proposed transactions related to non-dispositions of underlying assets, assumptions and judgments related to fair value estimates, and the other risk factors discussed in the Company’s Annual Information Form dated March 23, 2022, the Risk Factors section of its most recent management discussion and analysis, the Risk Factors section. in its supplement and base prospectus and its other filings available online a www.sedar.com. Although the forward-looking information contained in this press release is based on assumptions that the Company believes to be reasonable as of the date these statements are made, there can be no assurance that the forward-looking information will be accurate, as actual results and future events could differ materially from those anticipated in this forward-looking information. In addition, the Company cautions the reader that the information provided in this press release is provided to give context to the nature of some of the Company’s future plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, except in accordance with applicable securities laws.
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