TORONTO, March 29, 2019 (GLOBE NEWSWIRE) -- Ether Capital Corporation (“Ether Capital”, “ETHC” or the “Company”) (NEO:ETHC) announces the reporting of its financial results as at and for the period from January 11, 2018 to December 31, 2018, its fiscal year end. Unless otherwise indicated, all amounts are expressed in Canadian dollars.
In the fourth quarter, the Company closed its first equity investment. Ether Capital made a US$1.5 million ($2.0 million) investment in Wyre, Inc. (“Wyre”), a cryptocurrency exchange and technology platform based in San Francisco, California that is focused on building compliant fiat-to-crypto on and off ramps. In connection with the investment, Wyre granted Ether Capital a board observer position on Wyre’s Board of Directors. In addition, Michael Dunworth, CEO and Co-Founder of Wyre, agreed to join Ether Capital’s Advisory Board.
Subsequent to the end of the fourth quarter, the Company announced on March 14, 2019 that it had made a US$1.0 million ($1.3 million) investment in MKR, the governance token of MakerDAO (“Maker”). Maker is a decentralized credit platform built on Ethereum in which collateral is leveraged to produce a stablecoin. Ether Capital purchased 2,300 MKR tokens from the Maker Ecosystem Growth Foundation in exchange for 7,374 Ether. Following the Maker transaction, Ether Capital’s Ether balance was at 35,210.
Brian Mosoff, Ether Capital’s CEO, said: “Despite difficult market conditions over the past year, we are pleased with the progress of our investment strategy, which led to our investment in Wyre in December, 2018. Wyre is building a global platform and open API that any developer can leverage to reduce on-boarding friction. We believe Wyre’s compliance and liquidity offering will be critical to the future growth of the Ethereum ecosystem.”
Added Stefan Coolican, Ether Capital’s President and CFO: “While year-end results were disappointing due to the decrease in value of Ether during the fiscal year, we are encouraged by our acquisition of MKR tokens subsequent to year end. Combining MKR with our Ether holdings and stake in Wyre provides a compelling thesis around decentralized networks, open finance and mainstream adoption. We are focused on evaluating and selectively executing on attractive opportunities in 2019.”
As at December 31, 2018:
- The total value of the 42,587 Ether held by the Company was $7.6 million
- The total assets of the Company were $10.0 million
- The Company had an accumulated deficit of $35.1 million which includes a non-cash unrealized loss on the value of Ether of $30.0 million
- The Company recorded a net loss of $2.05 per share for the period from January 11, 2018 to December 31, 2018, which was primarily the result of the aforementioned unrealized loss on the value of Ether
On February 7, 2019 the Company closed a non-brokered private placement of 2,208,875 units of the Company (“Units”) for gross proceeds of approximately $1.1 million (the “Offering”). Each Unit is comprised of one common share of the Company and one common share purchase warrant of the Company. Following the Offering, the Company returned to an excess working capital position.
For audited financial statements for the period from January 11, 2018 to December 31, 2018, please refer to the Company’s website at http://ethcap.co/. The Company also provides regularly updated disclosure of its investments in the investors section of its website.
The Company’s audited financial statements, along with the accompanying management’s discussion and analysis have been filed on the System for Electronic Document Analysis and Retrieval (“SEDAR”) and may also be viewed under the Company’s profile at www.sedar.com.
About Ether Capital Corporation
Ether Capital is a Toronto-based technology company whose objective is to become the central business and investment hub for the Ethereum and Web 3 ecosystem. Ether Capital has invested in Ethereum’s native utility token “Ether” as a strategic asset, and selectively invests in projects, protocols and businesses that leverage the Ethereum ecosystem and Web 3 technologies. Founded by a highly experienced Board of Directors and management team, Ether Capital has the resources, experience and relationships to support businesses and invest in industry-shifting disruptive technologies. For more information, visit http://ethcap.co/.
| Further Information | |
| For further information concerning this press release, please contact: | |
| Brian Mosoff Chief Executive Officer Ether Capital 1-416-583-5541 http://ethcap.co/ | Stefan Coolican President and Chief Financial Officer Ether Capital 1-416-583-5541 http://ethcap.co/ |
This press release is not an offer of securities for sale in the United States, and the securities described in this press release may not be offered or sold in the United States absent registration or an exemption from registration. The securities have not been and will not be registered under the United States Securities Act of 1933. The NEO Exchange does not accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “scheduled”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” occur or be achieved. Forward-looking information includes, but is not limited to, statements in regard to the prospects for blockchain technology, the Ethereum platform, the Maker platform and Wyre’s and the Company’s business and strategy.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: general business, economic, competitive, geopolitical, technological and social uncertainties; uncertainties in regard to the development and acceptance of blockchain technology, the Ethereum platform and the Maker Platform; and Wyre’s ability to execute on its business plan and uncertain capital markets. Although the forward-looking information is based on the Company’s reasonable assumptions at the date such statements are made, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update or revise any forward-looking information, except in accordance with applicable securities laws.