Clarocity Corporation Announces Q1 Results, Shares for Services and Clarifies Repayment of Convertible Debentures

CARLSBAD, CALIFORNIA--(Marketwired - May 19, 2017) - Clarocity Corporation (TSX VENTURE:CLY) (the "Company" or "Clarocity") today announced its first quarter (Q1) financial results for the three months ended March 31, 2017.

"I am very pleased with the 81% revenue growth we achieved on a year over year basis," said Shane Copeland, CEO of Clarocity Corporation. "Over the course of the first quarter we announced six new contracts and subsequently another three. With nine new contracts in 2017 alone, it has become very apparent that the valuation industry is experiencing a paradigm shift and moving directly towards products like the ones we offer."

Mr. Copeland continued, "We have been continuously onboarding these new clients over the last five months and have been working diligently to ensure that we are able to accommodate each one's unique needs while strengthening each relationship to ensure future business from these clients. We have taken all the right steps to build a fundamentally strong business, while diligently working with our capital markets partners to strengthen our capital structure. As a result, we strongly believe that our operational performance will result in higher valuation for our shareholders."

Financial Highlights

• Total revenue was $3.23 million for the three months ended March 31, 2017, compared to 1.79 million for the same period in 2015, an increase of 81%.
• Net and comprehensive loss of $2.60 million ($0.01 per share) for the three months ended March 31, 2017 compared to a net loss of $2.26 million ($0.01 per share) for the same period in 2016.
• As at March 31, 2017, the Company's cash position was $1.26 million, compared to a cash position of $0.66 million on March 31, 2016.

Operational Highlights

During the quarter Clarocity announced:

• Contract with top 10 internet lending company.
• New contract to perform next phase of valuation services for U.S. government asset sales.
• Contract to perform valuation services for Guild Mortgage.
• It was selected for 2017 HousingWire Tech 100™ list.
• Contract with nationwide online hard money lender.
• Contract with U.S. agency for its MarketValue Pro to value asset portfolio.
• Contract with large regional bank for its MarketValue Pro to support equity lending.

Subsequent to the quarter the Company announced: