TORONTO, ON and MELBOURNE, AUSTRALIA / ACCESSWIRE / June 27, 2022 / BANXA Holdings Inc. (TSXV:BNXA)(OTCQX:BNXAF)(FSE:AC00) ('Banxa' or 'The Company'), the leading on-and-off ramp solution for Web3, announces today its cost cutting plan as an adjustment to the current global markets' downturn ensuring a stronger roadmap for Banxa's long-term success and with a clear line of sight to profitability.
- The company has been growing aggressively at 100% year-on-year growth rates over the last two years.
- Since then, the crypto markets have become an integral part of the global economy and are influenced as well by the current market's downturn
- With circa 20% decrease in global capital, Company management sees reduced transaction volumes and general turnover for the foreseeable future
- Management believes the downturn is temporary and that growth will resume within the next 6-18 months
- In order to manage operations in current conditions the Company will implement a number of cost-reduction initiatives measures including:
- Employee layoffs representing approx 30% of company staff (retaining 160 employees in across the globe)
- General corporate costs reduction across all SG&A accounts
- Downsizing the EU operations and its executives including parting with Managing Director Jan Lorenc.
- Expected cost savings are in excess of $10 million per annum.
In addition, Banxa has implemented with a number of workflow efficiencies and automation introduced over the last 6 months so that these changes are not expected to significantly disrupt execution of the product roadmap or service to the company's valued partners and users.
Banxa is re-focusing on core, higher-margin revenue streams related to its on/off ramp product, with the goal of prioritizing the company's path to profitability. This includes:
- Acceleration of the product roadmap with a focus on expanding the Sell (offramp) feature to include the support of more coins and chains.
- Enhancements to the API to allow for faster, more efficient onboarding of new partners.
- Increasing local payments in key American, European and APAC markets.
- Continuing to expand Banxa's NFT checkout product, as the market continues to grow in commercial use cases both in web3 and more traditional web2 markets.
- Achieving even deeper integration with existing partners to ensure they have the opportunity to benefit from the full range of Banxa's technology offerings.
CEO Holger Arians stated: 'These are measures of a responsible management. We have experienced rapid growth over the last year and while we strongly believe demand will resume its global rise, we cannot ignore the current markets downturn and must be careful to grow with the long-term in mind so we can deliver sustainable value to both our partners and our shareholders.'
Domenic Carosa, Banxa Founder & Chairman, said: 'We now have a clear line to profitability. Holger and the entire Banxa management team have the full support of the board of directors as they lead the company through the re-sizing process.'
The management team will host a live webcast to discuss this release and business performance at 2pm EST (11am PST) on Tuesday 28th June, 2022
The live webcast of the call can be accessed by registering at:
A recording of the webinar will be made available on the company website and YouTube channel.
BANXA Holdings Inc. (TSX-V: BNXA) (OTCQX: BNXAF) (FSE: AC00)
Banxa's mission is to accelerate the world to Web3 with its leading global on/off ramp solution. Through its extensive network of local payment solutions paired with the required crypto licences, Banxa gives its partners and projects access to global audiences with less friction and higher conversions. Banxa has a global team of Web3 natives - with operating headquarters in the USA, Europe and APAC regions. For further information go to www.banxa.com
MZ North America
Brian M. Prenoveau, CFA
ON BEHALF OF THE BOARD OF DIRECTORS
Per: 'DOMENIC CAROSA' https://twitter.com/dcarosa
Domenic Carosa = Chairman (1-888-218-6863)
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Forward-Looking Information and Statements
This press release contains certain 'forward-looking information' within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute 'forward-looking statements' within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as 'could', 'intend', 'expect', 'believe', 'will', 'projected', 'estimated', or variations of such words.
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are 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 information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: the ability of the Company to work effectively with strategic investors; and changes in general economic, business and political conditions, including changes in the financial markets, changes in applicable laws, and compliance with extensive government regulation. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein.
Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.
SOURCE: Banxa Holdings
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