Banxa Announces Fiscal Results for September Quarter 2021

Highlights:

• $256 million AUD ($182 million USD) Total Transaction Value (TTV) up 205% year on year
• Revenue of $12 million AUD ($8.5 million USD) - up over 316% year on year
• $25 million AUD ($18 million USD) in liquid assets (including cash and equivalents)
• Adjusted EBITDA loss of $1.2 million AUD ($0.8 million USD)
• Added 17 new coins with current support for 39 coins

Banxa Holdings Inc. (TSXV: BNXA) (OTCQX: BNXAF) (FSE: AC00) ("Banxa" or "The Company"), the world's first public payment service provider (PSP) and compliance Reg-tech platform for the digital asset industry, is pleased to announce its September 2021 quarter results. The full results including MD&A are available on Sedar.

Banxa has also added 17 new coins, now supporting 39 coins across multiple networks with more being added every month. These include: Binance USD on the ETH, BSC and BNB chains, Ethereum Classic on ETC and BSC, SushiSwap on ETH and BSC, Uniswap on ETH, MATIC and BSC and Solana.

The Outlook of the business remains positive with the December quarter expected to set another quarterly record.

Domenic Carosa, Founder and Chairman of Banxa, said: "We are pleased with our September quarter result notwithstanding a market slow down in July/Aug 2021 with volumes and transactions now picking up materially in the December quarter."

Holger Arians, CEO of Banxa, said: "We continue to rapidly grow our partner network to help meet our goal of making digital assets more accessible to everyone around the globe. To support our rapid growth we have expanded our product and experienced team to focus on further developing new and optimising our existing product offerings to support our partners."

Table showing Adjusted EBITDA Bridge:

Adjusted EBITDA is a non-IFRS financial measure that we calculate as net loss before tax excluding depreciation and amortization expense, share based compensation expense, unrealized loss on inventory, finance expense, realized/unrealized gain on fair value of deposits, loss on fair value of derivative, and listing expenses. Adjusted EBITDA is used by management to understand and evaluate the performance and trends of the Company's operations. The following table shows a reconciliation of adjusted EBITDA to net loss before tax, the most comparable IFRS financial measure, for the three months ended 30 September 2021 and 2020:

The approx FX rate between $AUD/$USD is AUD$1 = USD 0.71cents

EARNINGS WEBINAR:

The Company will run an Earnings call webinar via zoom:

Monday, 29th November 2021
3pm EDT/12pm PDT

Join Webinar:

https://us02web.zoom.us/j/82049452639

Working Capital Loans

The Company has been growing its Total Transaction Value (TTV) very strongly and there is a requirement for increased working capital to fund the T+2 settlements. The Company has entered into a number of related party loan agreements while it negotiates a longer-term working capital facility.

The Company's subsidiary, Global Internet Ventures Pty Ltd. ("Global Internet"), has entered into loan agreements (collectively, the "Loan Agreements" and each a "Loan Agreement") with each of Apollo Capital Management Pty Ltd. ("Apollo") and Carosa Corporation BV ("CCBV"), pursuant to which Apollo and CCBV will provide Global Internet with a revolving credit facility in the principal sums of up to AUD$4,000,000 and AUD$2,000,000, respectively (the "Loans"). The credit facility with Apollo accrues interest at the rate of 30% per annum and the credit facility with CCBV accrues interest at the rate of 10% per annum and both Loans mature on November 30, 2024.

The Company is not issuing any securities, paying any bonus, commission, or finder's fees in connection with the Loans and the Loans are not convertible, directly or indirectly, into equity or voting securities of the Company or a subsidiary of the Company. The Loans are repayable at any time without penalty.

Multilateral Instrument 61-101

Apollo and CCBV are affiliated companies of the Company's Chairman, Domenic Carosa, and as a result, the entering into of the Loan Agreements constitute a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Loans have been determined to be exempt from the requirements to obtain a formal valuation or minority shareholder approval based on sections 5.5(b) and 5.7(a) of MI 61-101, as the Company does not have securities listed or quoted on any of the specified markets listed in section 5.5(b) of MI 61-101 and at the time of the entering into of the Loan Agreements, the fair market value of the Loans does not exceed 25% of the Company's market capitalization.

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ON BEHALF OF THE BOARD OF DIRECTORS
Per: "DOMENIC CAROSA" https://twitter.com/dcarosa
Domenic Carosa
Chairman (1-888-218-6863)

ABOUT US

Banxa Holdings Inc. (TSXV: BNXA) (OTCQX: BNXAF) (FSE: AC00)

Banxa powers the world's largest digital asset platforms by providing payments infrastructure and regulatory compliance across global markets. Banxa's mission and vision is to build the bridge that provides people in every part of the world access to a fairer and more equitable financial system. Banxa is headquartered in Melbourne, Australia, with European headquarters in Amsterdam, the Netherlands.

For further information go to www.banxa.com

This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies.

These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance.

Banxa's statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of Banxa's control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties of the Company's business, including: Banxa's assumptions in making forward-looking statements may prove to be incorrect; adverse market conditions, including risks related to COVID-19 and risks that future results may vary from historical results.

Except as required by securities law, Banxa does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For Further Information, see www.banxa.com

CONTACTS:

Investor Relations:
North America: +1 (604) 609 6169
International: +61 451 744 080
Email: Investor@banxa.com

Lytham Partners, LLC
Ben Shamsian
New York/Phoenix
Email: shamsian@lythampartners.com

Media Contacts:
Dave Malcolm - Chief Marketing Officer
Email: dave.malcolm@banxa.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/105560