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Midpoint posts larger loss, but higher revenue

On per share basis, the net loss was unchanged at C$0.005 per share.
Midpoint posts larger loss, but higher revenue
Midpoint is the originator of the peer to peer foreign exchange business concept.

Midpoint Holdings (CVE:MPT), a Web based enterprise that matches buyers and sellers of foreign currency, reported a bigger loss but higher revenue in the latest quarter.

Net loss expanded to C$327,776, or C$0.005 loss per diluted share, for the three months ended September 30, from a net loss of C$279,047, or C$0.005 loss per diluted share, a year earlier, the Toronto, Ontario-based company said in a statement.

Total revenue increased to C$57,068 from C$29,549 year-over-year.

No analyst estimates were available for comparison.

Assets Totalled C$750,672 at September 30, compared with C$1,082,727 at June 30.

The shares closed up 9.1% at C$0.12 on Monday, paring this year's slump to 20%.

On October 26, the company completed a private placement for a Total of 2,886,673 units at a price of $0.15 per unit for Total proceeds of $433,001.

On November 6, the company engaged a law firm and accounting firm in the United Kingdom to investigate the possibility of the Company qualifying for the Enterprise Investment Scheme.

On November 23, the directors of the company agreed to raise additional funds through a proposed private placement for gross proceeds up to $4.2mln to maintain operational viability.

Also on November 23, the chief executive officer of the company resigned from his duties with the Company. The Company has entered into an agreement with the former CEO, pursuant to which he will be paid a further severance payment of $500,000, payable when the company obtains sufficient funding.

Midpoint is the originator of the peer to peer foreign exchange business concept. It creates a central marketplace where buyers and sellers of foreign currency can match their offsetting needs and it matches those counterparties at the midpoint of the relevant currency pair interbank rate for a fee.

Midpoint subscribes to an independent third party real-time market data feed which it uses to ascertain the mid-point each time a match is found. This ensures that both buyer and seller get the fairest rate possible at the moment in time that they are matched.

The P2P business model eliminates the bid-offer spread and other, often excessive, service fees that are normally incurred by the client when using other traditional competitors.

The FX market is the largest, most liquid market in the world. It is also highly fragmented due to its international nature.

The company’s business objective is to continue to build sales across multiple markets and jurisdictions while continuing to offer exceptional customer service and improving the platform for customers.

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Midpoint Holdings Ltd Timeline

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