TORONTO, CANADA, September 8 2023 - WonderFi Technologies Inc. (TSX: WNDR) (OTCQB: WONDF) (WKN: A3C166) (the "Company" or "WonderFi"), today announced that its wholly-owned subsidiary Bitbuy Technologies Inc. ("Bitbuy") proposes to purchase all client accounts of Simply Digital Technologies Inc. ("CoinSmart") (the "Transaction").
The Transaction will be carried out by way of an asset purchase agreement, where Bitbuy will purchase and assume from CoinSmart all of CoinSmart's rights, title and interest in, as well as any and all obligations associated with the servicing of CoinSmart's client accounts. The Company anticipates that the transaction will close prior to the end of September of this year.
This strategic move is part of WonderFi's plan to enhance the trading experience for its users following the initial acquisition of CoinSmart Financial Inc. By migrating CoinSmart's clients to Bitbuy, the Company aims to realize cost synergies and operational efficiencies while offering an increased range of services and a more accessible trading experience. CoinSmart users will gain access to a variety of services exclusive to Bitbuy, including crypto staking.
"We are excited to migrate CoinSmart's users to the Bitbuy platform," said WonderFi President and Chief Executive Officer, Dean Skurka. "This consolidation is part of our company strategy to streamline our operations and realize significant cost savings. As we continue to execute, we are getting closer to our goal of achieving profitability across the company."
Bitbuy is committed to making this transition as smooth as possible for CoinSmart users. There is no action required on the part of CoinSmart users, as their accounts and funds will be securely migrated to the Bitbuy platform. Users can expect clear communication and support throughout the process, ensuring a seamless transition. All CoinSmart account holders will receive further information related to their accounts and the Transaction.
Wonderfi wholly owns three Canadian based registered crypto trading platforms being Bitbuy, Coinsquare and Coinsmart, wholly owns SmartPay, a global crypto payment processing platform, and is the largest shareholder of Tetra, a leading Canadian digital asset custodian. With a collective user base of over 1.6 million registered Canadians and a combined assets under custody exceeding $730 million, WonderFi boasts one of the largest communities of crypto investors within a single regulated ecosystem in Canada. For more information, visit www.wonder.fi.
With over 600,000 registered users, Bitbuy is one of Canada's largest regulated crypto asset trading platforms. Bitbuy offers trading, staking, and corporate solutions to retail and advanced traders, high-net-worth and institutional clients. For further information about Bitbuy, please visit www.bitbuy.ca.
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Forward-Looking Information and Statements
This press release contains certain "forward-looking information" and "forward-looking statements" 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 beliefs of WonderFi Technologies Inc. ("WonderFi" or the "Company") 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 "could", "intend", "expect", "believe", "will", "projected", "planned", "estimated", "soon", "potential", "anticipate" 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 inability to complete the proposed Transaction; the inability of the Company to work effectively with strategic investors and partners, and any changes to key personnel; security and cybersecurity threats and hacks; internet and power disruptions; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; the COVID-19 pandemic; climate change; currency risk; changes in or enforcement of national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices and political or economic developments in Canada, the United States, Europe and other jurisdictions in which the Company carries on business or in which the Company may carry on business in the future; and material adverse changes in general economic, business and political conditions, including changes in the financial markets and compliance with extensive government regulation. These risks are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. 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. The impact of any one assumption, risk, uncertainty, or other factor on a particular forward-looking statement cannot be determined with certainty because they are interdependent and the Company's future decisions and actions will depend on management's assessment of all information at the relevant time. A more fulsome description of risk factors that may impact business, financial condition and results of operation with respect to WonderFi is set out in its management's discussion and analysis and financial statements for the period ended March 31, 2023, as well as its annual information form and the joint management circular of WonderFi, Coinsquare and CoinSmart in respect of the Acquisition, available on its SEDAR profile at www.sedar.com.
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. All financial amounts referenced herein are in Canadian dollars unless otherwise expressly identified.
The Toronto Stock Exchange has not approved or disapproved of the information contained in this release.