Banxa Reports FY23 Q1 & Q2 Results

HIGHLIGHTS

• Financial results submitted which allows company to request lifting of COT
• Company remains on track to reach operational break even in the coming months
• Company anticipates filing FY23 Q3 (March Qtr 2023) by 31^st May 2023

TORONTO, May 16, 2023 (GLOBE NEWSWIRE) -- 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 lodging of Australian fiscal year 2023 Q1 (September Qtr 2022) and Q2 (December Qtr 2022) unaudited results. The full results including Management Discussion & Analysis (MD&A) are available on SEDAR.

Domenic Carosa, Banxa Chairman, said: “Banxa continues to make progress in seeking to resume trading of BNXA stock as soon as possible, and will file a request with regulators and the TSX Venture Exchange imminently. We expect to resume trading in the coming weeks.”

Holger Arians, Banxa CEO, said: “The first and second quarters saw our company go through a difficult but necessary restructure that allowed us to dramatically cut costs while re-focusing on product development and revenue generation in our core business. We onboarded industry-leading DeFi wallets MetaMask and ZenGo as tier-one partners, and established a services arm of the business for paid asset listings, both of which have allowed us to diversify our revenue from centralised exchanges. Looking ahead, we expect to continue to see the results of our efforts reflected in the company’s performance, as Banxa executes on our current strategy of aggressively pursuing profitability in the near-term.”

FY23 Q1 (September Qtr 2022) Overview ($AUD)

- TTV: $120 million
- Gross profit $2,804,140
- Operating loss $4,800,918, due to cost optimization
- Major restructure undertaken for cost optimisation July 2022

FY23 Q2 (December Qtr 2022) Overview ($AUD)

- TTV: $148 million (Up 23.78% on FY23 Q1)
- Gross profit $4,869 million, up 73% on FY23 Q1
- Operating loss $1,680 million, improvement of 65% from Q1 FY23 due to increased growth and cost optimization
- Additional restructure measures and cost optimisation implemented in September 2022 and realised in statutory accounts from November 2022
- Signed flagship DeFi partners MetaMask and ZenGo and established paid services division, which contributes directly to gross profit

Update on removal of Trade Cessation Order and resumption of trading

The Company confirms it will be formally requesting that the British Columbia Securities Commission and the TSX remove the Cessation of Trade to allow the resumption of trading. Prior to the resumption of trading, the Banxa management team will host a webinar (with Q&A) to provide an update to shareholders, including fiscal year 2023 Q3 (March Qtr 2023) results which the Company anticipates filing by the 31^st May 2023.