Kvanto Payment Services Ltd.
Kvanto Payment Systems Provides Corporate Update
Experiences over 100% in Client growth – Raises additional capital Prepares for Public Listing amid COVID-19 restrictions
COPENHAGEN, Denmark, June 01, 2021 (GLOBE NEWSWIRE) -- Kvanto Payment Services Ltd. and its wholly subsidiary Kvanto Payment Services A/S. ("Kvanto") is pleased to provide this Corporate Update and report on certain key initiatives that are currently underway.
During Kvanto’s current 2021 fiscal year which ends on June 30, 2021, amid the challenges and restrictions imposed by COVID-19, the company has been successful in increasing its working capital by USD$ 2,040,000 by issuance of a series of private placements.
This injection of capital has provided the financial foundation for the implementation of 3 key objectives which were:
1) To Increase the Customer Base,
2) Provide the Capital for the MWT acquisition, and
3) Strengthen the Balance Sheet for the planned public listing.
1) Customer Base Increases Over 100%
Kvanto has been working diligently to expand its’ reach of clients globally. The injection of capital has allowed the Company to increase its activity recently which has resulted in over a 100% increase in the number of live clients as of May 2021 compared to the same time period in 2020. The revenue impact from these new Customer signings is expected to begin over the next 3 to 6 months as the Kvanto gateway is implemented onto the Clients platforms.
The Company believes it is in good shape as it moves away from being a start-up company and begins its scale-up stage.
2) Status of the MWT Acquisition
One of Kvanto’s most exciting projects previously announced on December 22, 2020 is the partnership established with Mobileware Technologies PVT ("MWT") in Mumbai, India and the pending acquisition of MWT. The Company now has the necessary capital to conclude on the cash requirements of the acquisition, however the closing of the acquisition has been delayed due to COVID-19 restrictions which are especially amplified in India. These restrictions have prevented the completion of the last stages of finalizing the legal due diligence requirements and implementing the "turn on" of the payment processing platforms to begin realizing the agreed upon resulting revenue streams. Both parties are in the process of completing their respective requirements of the acquisition agreements and once completed and agreed to by the parties, Kvanto will complete their registration papers and the project will start functioning. The start date is dependent on certain COVID-19 restrictions being lifted and is not yet determinable.
Even though the completion of these processes to conclude on the acquisition have been delayed amid the coronavirus crisis, nothing compares to devastation the virus has caused in India and the impact it has had on the country. Kvanto would like to acknowledge and appreciates all the hard work the people in India have done to move forward.
3) Preparation for the Planned Public Listing
The delays caused by the COVID-19 restriction has also had an impact on the timing of the planned listing of Kvanto on the Canadian Securities Exchange ("CSE") and its planned cross listings onto the open segment of the Frankfurt Stock Exchange ("FSE") and the OTC Markets ("OTC") in the USA.
The MWT acquisition has had a significant impact on the preparation of the required documentation and disclosure for the listing application. Its timing drives the reporting and auditing of the consolidated results of Kvanto Payment Systems Ltd which is the entity based in Canada that will be applying for listing. Although management has been optimistic that the Company could have worked through the restrictions imposed by COVID-19, they worsened in in the last quarter. Unfortunately, these worsening restrictions has caused this unforeseen delay.
The Company has however advanced certain aspects of the listing process to help mitigate some of these circumstances. Caravel Law has been appointed as the Company’s securities lawyer and is now in the process of preparing the Non-Offering Prospectus for submission to the Canadian securities regulators.
The Company has also upgraded it auditing on a consolidated entity basis with the appointment of BDO as its international auditors. The Financial Statements to be included in the Prospectus will have been audited by BDO.
Kvanto is now targeting the application for listing to be submitted for approval during the calendar years 3rd quarter rather than the previously expected 2nd quarter.
Kvanto CEO Jesper Skorstengaard concluded, "I know, our shareholders are anxious to see Kvanto listed on the stock exchange and even though I pushed and had hoped we would have already realized that status, we have faced some challenges and delays beyond our control. However, I am excited about our position in the marketplace and the prospects for our Company going forward, which we should see translate into building shareholder value as we continue to prepare to apply for our anticipated listing in the near future."
About Kvanto Payment Services:
Kvanto was established to compete in the rapidly changing digital payment solutions market. Client adoption proves Kvanto has the solutions to compete.
Kvanto has positioned itself as a premium European multi-connectivity payment service provider (holding a PSP-ISO), with a world-recognized payment gateway which integrates leading acquirers who handle different payment methods and payment cards linking to online and offline business efficiently, affordably and reliably.
The Kvanto organization boasts several decades of experience within the payment and financial industries. It’s extensive network of partners and collaborators across the world is one of the key reasons why Kvanto is able to provide customers with a payment solution no matter where they operate from.
Kvanto Payment Services AS based in Denmark, is a 100% operating subsidiary owned by Kvanto Payments Services Ltd. in Canada.
For Further Information Contact:
Kvanto Payment Services A/S
All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements and involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Kvanto Payment Services A/S is under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
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