Ether Capital Corporation Reports First Quarter 2022 Financial Results

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TORONTO — Ether Capital Corporation (“Ether Capital” or the “Company”) (NEO: ETHC) announces the reporting of its financial results as at and for the three months ended March 31, 2022.

As at March 31, 2022:

  • The total value of Ether and Staked Ether held by the Company was $180.5 million.
  • The total value of the Company’s assets was $193.2 million.
  • The total shareholders’ equity of the Company was $192.7 million.
  • The Company recorded revenue during the quarter of $1.2 million and operating expenses of $0.8 million.
  • Net Loss, after incorporating Non-Operating Expenses of $8.17 million, was $7.76 million, or ($0.23) per share.
  • Net Book Value per Share was $5.74.

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During Q1 2022, Ether Capital began a strategic transition from passive ownership of Ether with minority sector investments, to an operating business that holds yield-generating Ether. The Company sold non-core assets (MKR and Uniswap tokens), increased its allocation of Ether to Staked Ether and increased the headcount of its senior management team.

During the quarter, the Company’s revenue included both consulting revenue from Purpose Investments pertaining to its crypto ETFs ( BTCC and ETHH) and from Staked Ether. Details about these developments are included in the Company’s financial statements and the Management Discussion and Analysis (MD&A).

“We had a strong start to the year and our revenue exceeded operating expenses in the quarter,” said Brian Mosoff, CEO of Ether Capital. “We brought on two executives who are highly experienced in traditional finance and key to our growth strategy. Their expertise, combined with our insider knowledge of the Ethereum ecosystem, is exactly what we need as we continue to build out our business and pursue new opportunities in the space. We exited non-core assets this past quarter and are focusing on building products that support the Ethereum ecosystem, while making it more accessible to the traditional finance community.”

Summarized below are the primary digital assets held by Ether Capital as at March 31, 2022:

Ether

Staked Ether

Ether Rewards

Units (ETH/Staked
ETH)

23,610

20,512

233

Dollar Value (CAD)

$96,786,164

$82,845,972

$816,912

To access unaudited financial statements for the quarter, which ended March 31, 2022, please refer to the Company’s website at http://ethcap.co/. The Company’s unaudited financial statements, including the MD&A, have been filed on the System for Electronic Document Analysis and Retrieval (“SEDAR”) and may be viewed under the Company’s profile at www.sedar.com.

Ether Capital intends to host its Annual General Meeting of Shareholders on June 28, 2022, in Toronto.

About Ether Capital Corporation

Ether Capital is a Toronto-based technology company with a long-term objective to become the central business and investment hub for the Ethereum and Web3 ecosystem. Ether Capital has invested in Ethereum’s native utility token “Ether” as a strategic asset, and selectively invests in projects, protocols and businesses that leverage the Ethereum ecosystem and Web3 technologies. Founded by a highly experienced Board of Directors and management team, Ether Capital has the experience and relationships to support businesses and invest in industry-shifting disruptive technologies. For more information, visit http://ethcap.co/.

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The content of this document is for informational purposes only and is not being provided in the context of an offering of any securities described herein, nor is it a recommendation or solicitation to buy, hold or sell any security. The information is not investment advice, nor is it tailored to the needs or circumstances of any investor. Information contained on this document is not, and under no circumstances is it to be construed as, an offering memorandum, prospectus, advertisement, or public offering of securities. No securities commission or similar regulatory authority has reviewed this document and any representation to the contrary is an offence. Information contained in this document is believed to be accurate and reliable, however, we cannot guarantee that it is complete or current at all times. The information provided is subject to change without notice and neither Ether Capital Corporation, nor any of its affiliates, will be held liable for inaccuracies in the information presented.

Non-GAAP Measures

The Company’s condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this press release, the Company discloses the gross value of its assets and the gross value per basic common share, which are non-GAAP financial measures. These non-GAAP measures are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. The Company has presented such non-GAAP measures as management believes they are relevant measures of the value of the Company’s underlying assets. Non-GAAP measures should not be considered as alternatives to the information set out in the Company’s financial statements.

Forward-Looking Information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements in regard to the Ethereum ecosystem. The Company cautions the reader not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Generally, but not always, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “on pace”, “anticipates”, or “does not anticipate”, “believes”, and similar expressions or state that certain actions, events or results “may”, “could”, “would”, “should”, “might”, or “will” be taken, occur or be achieved.

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Forward-looking statements are based on information available to management at the time they are made, management’s current plans, estimates, assumptions, judgments and expectations. Forward-looking information is 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 forward-looking information. Such risks and uncertainties include, but are not limited to: general business, economic, competitive, geopolitical, technological and social uncertainties; uncertainties in regard to the development and acceptance of blockchain technology (including proof of stake and Ethereum 2.0), and the Ethereum platform and anticipated timing and impact of the Ethereum network upgrade, the impact of the outbreak of the COVID-19 coronavirus on the Company, and the other risk factors discussed in the Company’s Annual Information Form dated March 23, 2022, the Risk Factors section in its most recently filed management’s discussion and analysis, the Risk Factors section in its Supplement and Base Shelf Prospectus and its other filings available on-line at www.sedar.com. Although the forward-looking information contained in this press release is based on assumptions that the Company believes to be reasonable at the date such statements are made, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. In addition, the Company cautions the reader that information provided in this press release is provided to give context to the nature of some of the Company’s future plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update or revise any forward-looking information, except in accordance with applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220516005572/en/

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Contacts

Brian Mosoff
Chief Executive Officer
brian@ethcap.co

Ian McPherson
President and Chief Financial Officer
imcpherson@ethcap.co

#distro

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