Clarocity Corporation Announces Q3 2017 Financial Results and Debt Facility
Calgary, Alberta – November 17, 2017 – Clarocity Corporation (TSXV: CLY; OTCQB:CLRYF) (the “Company” or “Clarocity”), today announced its third quarter financial results for the three months ended September 30, 2017. In addition, the Company will be hosting a conference call to discuss the results on Monday, November 20th, 2017 at 10:00am EST. Details on the call can be found below.
“While revenue this quarter was significantly improved compared to the year prior, we did see a downturn in closed revenue due primarily to a slight delay of new volume in the third quarter,” said Shane Copeland, CEO of Clarocity. “While disappointing, we believe this reflects in no way negatively on the short to long term prospects of our technology and valuation services business. We continue to focus on building this company for the long term by ensuring that our technology and proprietary products are integral and valuable to the quickly changing appraisal landscape and by adding quality customers that will continue to rely on the Clarocity platform over the long term. I am highly confident that the customers we have added this year and continue to add to our operational volume flow, will increase their demand for our alternative appraisals and technology, something we have already seen in the early parts of Q4 2017.”
Mr. Copeland continued “Our strategic alternatives review remains underway as we consider all meaningful options to ensure the long-term expansion and growth of our company. As mentioned previously, we have received unsolicited interest in our technology and services and are actively exploring new ventures that would quickly solidify our position in the marketplace and ultimately improve stakeholder value. The committee has been active in scrutinizing and prioritizing these opportunities and we remain incredibly bullish on the potential strategies that we have explored thus far.”
In addition, the Company announced that they have agreed to a new Debt Facility (“Facility 3.0”) in the amount of $2.5 million from StableView Asset Management. In addition, the Company has agreed to amend the conversion price of convertible debentures issued pursuant to the previously announced Standby Facility (See press releases dated May 10th, 2017, May 26th, 2017, July 20th 2017 and August 17th 2017,) from $0.16 per share to $0.10 per share.
- Total revenue was $2.79 million for the three months ended September 30, 2017, compared to $0.94 million for the same period in 2016, an increase of 198%. Total revenue was $9.66 million for the nine months ended September 30, 2017, compared to $3.98 million for the same period in 2016, an increase of 142%.
- Net and comprehensive loss of $4.00 million ($0.02 per share) for the three months ended September 30, 2017 compared to a net loss of $2.50 million ($0.01 per share) for the same period in 2016. Net and comprehensive loss of $10.15 million for the nine months ended September 30, 2017 compared to a net loss of $6.80 million for the same period in 2016.
- As at September 30, 2017, the Company’s cash position was $0.34 million, compared to a cash position of $0.66 million on December 31, 2016.
During the Quarter
- Clarocity Corporation announces trading on OTCQB Venture Market
- Clarocity Corporation engaged by leading asset management firm to perform valuation services
- Clarocity Corporation launches Clarocity Valuation Services, names Aleksandra James as President of ClarocityVS
- Clarocity announces results of warrantholder meeting, eliminating approximately 52.7 million common shares from the fully diluted share count
- Clarocity Corporation announces CDN $4.7m contract extension with USDA
Subsequent to the quarter:
- Clarocity Corporation initiates strategic alternatives review – Board mandates management to enhance stakeholder value
- Clarocity Announces addition of Tom Signorello to Board of Directors
Conference Call Details
Date: Monday, November 20th, 2017
Time: 10:00am EST
|Local – Calgary, AB||(+1) 587 880 2171|
|Local – Toronto||(+1) 416 764 8688|
|Toll Free – North America||(+1) 888 390 0546|
Recording Playback Numbers
|Toronto||(+1) 416 764 8677|
|Toll Free – North America||(+1) 888 390 0541|
Playback Passcode: 005274 #
Playback Expiry Date: Monday, November 27th, 2017 11:59 PM
For further information, visit www.clarocity.com or contact:
Virtus Advisory Group Inc.
About Clarocity Corporation
Clarocity Corporation provides real estate valuation solutions and platform technologies designed to address today’s dynamic housing market. Our innovative platform is driving the next-generation of valuation solutions such as MarketValue Pro (MVP) and BPOMerge and setting new standards in real estate valuation quality and reliability.
Every day GSE, banking, and investor clients rely on our proprietary solutions to value assets, fund loans, and securitize portfolios. As a fully integrated technology and valuation services company, Clarocity provides a full spectrum of appraisal and alternative valuation solutions. For more information, visit www.clarocity.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements which may include financial and business prospects, as well as statements regarding the Company’s future plans, objectives or economic performance and financial outlooks. Such statements are subject to risk factors associated with the real estate industry, the overall economy in both Canada and the United States. Forward-looking information in this press release, includes, among other things, information relating to growth acceleration, deepening market penetration for our technology and future revenue growth. The Company believes that the expectations reflected in this news release are reasonable but actual results may be affected by a variety of variables and may be materially different from the results or events predicted in the forward-looking statements. Readers are therefore cautioned not to place undue reliance on these forward-looking statements. In evaluating forward-looking statements readers should consider the risk factors which could cause actual results or events to differ materially from those indicated by such forward-looking statements. These forward-looking statements are made as of the date hereof, and unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or revise any forward-looking statements.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act, and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act)