CoinSmart Financial Inc

Overview

The cryptocurrency market is expected to grow at a compound annual growth rate of 30 percent from 2019 to 2026 and reach a market capitalization of US$5.2 billion by 2026. Because of the growth opportunities available, the overall crypto global population has more than doubled from 100 million in January 2021 to >200 million in May 2021, as per reports. To further fuel this growth, users will need platforms that they can trust without a shadow of a doubt. According to KPMG, one of the key factors that will be critical in the growth of the crypto economy are "trust agents" like regulators, auditors, academic institutions, consortiums, and trading platforms.

CoinSmart Financial is a leading Canadian-headquartered cryptocurrency asset trading platform dedicated to providing customers with an intuitive trading platform for buying and selling digital assets, like Bitcoin and Ethereum, combined with the seamless ability to on-ramp and off-ramp fiat. Clients' security and protection is the Company's primary focus.

The Company is registered as a money services business with financial regulators in Canada (through FINTRAC) and in the United States (through FinCEN). In addition the Company is registered with the Ontario Securities Commission as a restricted securities dealer in Ontario and all other Canadian jurisdictions.

CoinSmart is registered with the Financial Intelligence Unit of Estonia for providing a virtual currency service and offers crypto asset trading services to select European countries and other markets. The Company further builds on its mission to make cryptocurrency accessible by providing educational resources tailored to every level of cryptocurrency customer and unparalleled 24/7 omni-channel customer success/support. Offering instant verification, industry leading cold wallet storage, advanced ccharting with order book functionality and over-the-counter premium services. The Company ensures every client's needs are met with the highest level of quality and care.

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CoinSmart In Numbers

• Successful trading volume: $750,000,000
• Total users: 152,000 in 2.5 years.
• User satisfaction rate: 99.8%.
• Customer acquisition cost: $80 per acquired customer
• Lifetime value: $800 lifetime customer value
• Revenue growth: $7.3 million revenues as at June 30, 2021 year-to-date already doubling 2020 revenues

NOTE: All the $ values are in CAD.

Strict Commitment To Transparency And Ethical Business Practices

CoinSmart obtained its Canadian FINTRAC license in 2018 before it was required. The company has also acquired licenses and approvals for each jurisdiction that it operates in including the US and Estonia. Currently, they are in the process of obtaining licenses and approvals for future geographic expansion in the European Union, Australia, and Latin America.

On October 22, 2021, CoinSmart was granted restricted dealer registration with the Ontario Securities Commission (OSC) and all other Canadian Securities Administrators members. A little over a week later, CoinSmart went public and became listed on the public markets. CoinSmart has taken these steps to further solidify its commitment to strict compliance with regulations to ensure user protection. Being a publicly-traded company, CoinSmart will need to legally disclose the following information (not exhaustive):

• Annual audited financials and quarterly reporting from a tier 1 accounting firm
• Instances of insider trading
• Ownership changes
• Public filings for mergers and acquisitions.

Company Highlights

• CoinSmart is a Canadian cryptocurrency trading platform that is focused on building trust with users by delivering a safe, secure and intuitive platform for trading digital assets.
• The company is one of the first Canadian trading platforms to be compliant with the Financial Transactions and Report Analysis Centre of Canada (FINTRAC) and is committed to the safety and security of its users through strict compliance with regulations.
• The company has a strong user base and a high customer satisfaction rate of 99.8 percent. CoinSmart's revenue has grown tenfold since its launch in 2018 and is on pace to reach $14M+ in revenue for 2021 fiscal year.
• CoinSmart is led by an experienced management team with a strong history of success in online business, mergers and acquisitions, and exit strategies.
• In Q1 2021, CoinSmart closed a $4.5 million CAD oversubscribed pre go public funding round, followed by a C$12.6m go public round led by Eight Capital in Q2 2021.
• On October 22, 2021, CoinSmart got the green light from the OSC to act as a restricted dealer.
• On November 2, 2021, CoinSmart went public on the NEO Exchange under the symbol 'SMRT'.

Key Products

CoinSmart's key products are:

• GetSmart Hub
• SmartGuarantee
• SmartTrade
• SmartSupport
• SmartSecurity
• AdvancedTrade
• SmartPay

GetSmart Hub

The GetSmart hub features resources and learning tools for beginner- to advanced-level users to gain critical cryptocurrency knowledge.

The GetSmart hub includes a frequently asked questions section, comprehensive articles, blog posts, and how-to guides.

SmartGuarantee

Smart Guarantee provides users with 3 guarantees:

• User's deposits are credited to their account on the same day that CoinSmart receives the deposit. If a user's deposit is not credited on the same day CoinSmart receives it, users are guaranteed credit for the deposit fee.
• All cash withdrawal requests are processed within five business days. If a user's cash withdrawal request is not processed within five business days, the user's account is credited for the withdrawal fee.
• All account verifications are processed on the same day. If the account verification is not processed the same day that it is submitted, CoinSmart will waive the user's deposit fee for their first deposit.

Users are required to notify the company by email within three business days of the event that triggers their claim request to benefit from SmartGuarantee.

SmartTrade

SmartTrade allows users to bypass tethering and trade the coins they want. In addition, users can directly trade from one coin to another in one click.

CoinSmart's current coin list includes Bitcoin, Ethereum, Bitcoin Cash, Cardano, Stellar Lumens, Litecoin, EOS, USDC, Dogecoin, Polkadot, Shiba Inu, UniSwap, and Chainlink. In addition, CoinSmart is constantly adding digital currencies to its platform

The company also accepts multiple funding methods, including Interac, SEPA, wire transfers, e-transfers, and listed cryptocurrencies.

SmartSupport

SmartSupport is the only support service offered by a Canadian cryptocurrency trading platform that is live 24X7 and available in multiple channels. Users can ask questions to CoinSmart's SmartReps by phone, email or a live online chat.

SmartSecurity

SmartSecurity provides users with multiple features to enhance security and user protection.

1. SmartSecurity prevents fraud with a comprehensive identity verification process that uses a database offered by data collection agencies. Through this database, SmartSecurity can detect fraudulent addresses and dates of birth for verifying a person's identity while maintaining the security and privacy of personal user information.
2. Regardless of whether or not a user purchases a currency, users have the option of cold storage for each cryptocurrency with SmartSecurity. Cold storage keeps cryptocurrency coins away from internet access to prevent hacking attempts in cold wallets.
3. Mandatory 2FA and Withdrawal Email cuts down heavily on fraud prevention.

Advanced Trade

Advanced Trade offers tools for experienced investors for tracking trading activity, deposits and withdrawals. Users can use features such as limit orders, stop loss, real-time charting and customized orders with an order book function.

SmartPay

SmartPay is an automated cryptocurrency invoicing platform that allows users to accept cryptocurrency as payment with guaranteed exchange rates and low transaction fees.

Users benefit from instantly converting their Bitcoin to fiat with a same-day payout that is wired directly to their bank account. Plus, CoinSmart's instant conversion allows users to mitigate the risk of chargebacks and price volatility.

CoinSmart Mobile App

The CoinSmart mobile app is now available on both Android and iOS.

Access the crypto markets 24X7 from your pocket with CoinSmart's mobile applications. Buy, sell, and trade all listed crypto assets and access sophisticated trading instruments.

• Android
• iOS

Management Team

Justin Hartzman - Co-Founder and CEO

Justin Hartzman is the CEO and co-founder of CoinSmart. Hartzman founded CoinSmart based on making cryptocurrency accessible to all. Hartzman strongly believes in the promising future cryptocurrency has to offer and the importance of it being a part of any well-balanced portfolio of investments. As a seasoned business leader and entrepreneur, Hartzman has led numerous companies from start-up to successful exit. His proven track record of entrepreneurial success includes founding the first website brokerage exclusively serving online businesses, pioneering the industry, and achieving over $100M in transactions to Fortune 1000 companies, PE firms, family offices, and venture funds.

Michael Koral - Co-Founder and CBO

Michael Koral is the co-founder and chief business officer of CoinSmart where he leads marketing and commercial operations. His inclination to help underserved markets led him into the frontiers of cryptocurrency. Through his contributions at CoinSmart, Koral hopes to educate the broader population in understanding the rationale and benefits behind the value that crypto-assets offer and real-world use cases. Prior to joining the team, Koral led customer acquisition and operations at AI-focused social media advertising platform, Needls.

Jeremy Koven - Co-Founder and COO

Jeremy Koven has spent the last 12 years running successful internet companies from the ground up. From building custom web solutions to marketing, operations, monetization, and exits. Previously, Koven co-founded and led development at AYCEI where he successfully completed over 550 projects managing a team of 150 developers and designers. Most recently Koven served as the chief platform officer at Needls where he drove the product vision and led the development team.

Steven Kraft - Operations Lead

Steven Kraft is a cryptocurrency and blockchain expert who leads operations at CoinSmart. Previously, Kraft spent over seven years working in traditional finance and has functional expertise in M&A, capital markets, private equity, lending, and equity research. Kraft holds an MBA from Queen's University and completed an Honours Degree in History from the University of Toronto.

Gordon Brocklehurst - Chief Financial Officer

Gordon Brocklehurst is a Chartered Professional Accountant with over 30 years of senior financial and operational experience. He is a Member of the Ontario and Canadian Institutes of Chartered Professional Accountants. Has extensive experience in corporate financing, mergers & acquisitions, financial reporting and compliance in both private and public markets including the TSX and NYSE. Previously, Brocklehurst was the Chief Financial Officer & Treasurer of Siamons International Inc., a start-up that was successfully marketed and sold to a large international CPG company. Brocklehurst articled at KPMG after earning an honours degree in economics at York University.

Joe Tosti - Chief Compliance Officer

Joe Tosti is the Chief Compliance Officer of SDT where he has overall oversight of enterprise- wide regulatory compliance. He has over 20 years' experience in the securities industry working for some of the largest public institutions in Canada and gained extensive experience in compliance, trading, operations and wealth planning. Prior to joining SDT, Tosti was the Vice President of Compliance at CI Investments and Chief Compliance Officer at CI Private Wealth and CI Direct Investing, one of Canada's largest investment fund companies. In addition to his role at CI, Tosti has also contributed to the success of various industry start-ups.

Board Members

G. Scott Paterson

G. Scott Paterson was a Top 40 Under 40, has been a TedTalk speaker, had a chapter dedicated to him in Peter C Newman's #1 best seller: Titans, was profiled in Time Magazine as 'One of Canada's 21st Century Leaders', was profiled in Newsweek as 'One of 17 People to Watch Globally', was awarded Western University's top Alumni Purple & White Award and has been a keynote speaker on behalf of countless organizations including Mastercard, EY Entrepreneur of the Year and the National Angel Capital Organization.

Paterson has served as a Trustee of the Art Gallery of Ontario, obtained his ICD.d designation as a graduate of the Institute of Corporate Director's at Rotman School of Management and earned a Certificate in Entertainment Law from Osgoode Hall Law School. In the media space, Paterson was the second investor in Lionsgate Entertainment (NYSE:LGF.A) when the company was founded in 1997. He served as a Board member for 21 years including as Chair of the Audit & Risk Committee for 15 years and today serves as a Director of Lions Gate Entertainment Canada Corp.

In the financial services arena, Paterson built Yorkton Securities, initially as Executive VP then as Chair & CEO, into Canada's leading technology & media investment bank. Under his leadership, revenue grew from $15 million in his first year to $244 million five years later. During Paterson's tenure, Yorkton was consistently ranked by Brendan Wood International as the #1 Canadian technology investment bank in respect to number of lead underwritings, quality of research and market share of trading, while raising over $3 billion as lead underwriter and over $9 billion as co-managing underwriter.

Paterson has also served as Chair of the Board of the Toronto Venture Stock Exchange, Vice Chair of the Toronto Stock Exchange, a Governor of the Investment Dealers Association, a Director of the Canadian Investor Protection Fund, a Director of the Canadian Securities Institute and a Director of the Canadian Securities Advisory Council. In 2004, Paterson was recruited to join newly formed Symbility Solutions, a SaaS platform utilized by insurance companies to optimally process property claims, where he served as Board Chair for 14 years. Symbility was listed on the Toronto Venture Exchange when it was sold to Corelogic (NYSE:CLGX) in 2018 for $162 million.

Alexa Abiscott

Alexa Abiscott is the General Counsel and Secretary of ApplyBoard Inc. and is responsible for ApplyBoard's global legal operations, privacy and data governance compliance and risk management portfolios and acts as Secretary of the Board of Directors. Abiscott is a founding member of Women General Counsel Canada (WGCC) and the General Counsel Chapter of the Women's Law Association of Ontario. She is currently serving a two-year term as President of WGCC. Prior to her current role at ApplyBoard, Alexa created and led the Office of General Counsel and Board Secretariat at Sheridan College. Prior to her General Counsel roles, Alexa practiced as corporate commercial litigation lawyer at a Bay Street law firm. She lives in Toronto with her husband and four children.

Abiscott holds an Honour's Bachelor Degree from McGill University in Anthropology, a Graduate Diploma in International Business from McGill University, a Bachelor of Laws from Western University, and has been certified in NFP governance by the Institute of Corporate Directors and the University of Toronto's Rotman School of Management

Jeffery Haas

Jeffrey Haas is a leader in the online gaming industry and has been a strategic advisor to CoinSmart since 2019.. He has 20+ years' experience helping build some of the largest gaming businesses in the world, including DraftKings, PokerStars, the World Poker Tour (WPT), Asia Pacific Poker Tour (APPT), European Poker Tour (EPT) & PartyPoker. His work has varied across executive-level contributions to business strategy, product development, operations, licensing and regulatory compliance within this highly regulated industry.

Haas is the SVP of International Strategy for Boston-based DraftKings, where he has worked since 2015. He is a relentless and creative business development innovator, public policy strategist, growth marketer and digital futurist.

Jodi Klein - Head of Growth

Jodi brings over 15 years of expertise in Digital Marketing and Marketing Technology. Her background includes an extensive understanding of integrated marketing tactics and emerging tech across sectors spanning online gaming, financial services, automotive, and retail. Most recently, Jodi was Director of Marketing Acquisition and Digital Engagement Marketing at Scotiabank, as well as Senior Director of GroupM Trading division, and Digital Marketing Program Manager at Dell Canada.

Pierre Soulard - Chief Legal Officer

Pierre will oversee CoinSmart's corporate legal strategy and affairs and provide strategic guidance to the executive team and Board of Directors. Pierre joins CoinSmart from Miller Thomson LLP where he was a partner. He brings a wealth of expertise in corporate finance, public and private M&A transactions, and corporate governance. Pierre holds a BCL and LLB from McGill University and a Master of Law from Osgoode Hall Law School.

Nooreen Kanji - Head of People

Nooreen's newly-created role encompasses recruitment administration, onboarding, legal compliance, payroll, data and reporting and other general people-related activities within the team. Before joining Coinsmart, Nooreen previously worked at Coinsquare as Head of Culture and Engagement, and earlier as Manager of the Talent & Culture division at Anomaly.