Cryptologic Releases 2020 Second Quarter Financial Results
CRYPTOLOGIC RELEASES 2020 SECOND QUARTER FINANCIAL RESULTS
TORONTO, Ontario, August 28, 2020 - Cryptologic Inc. (“ Cryptologic” or the “ Company”) (CSE:CRY)
today announces its financial results for the quarter ended Jun e 30, 2020. Selected financial information
of the Company for the three and six months ended June 30, 2020 and 2019 and the year ended December
31, 2019 is set forth below:
The Company reported a net loss of $1.4 million for the quarter ended June 30, 2020 as compared to net
income of $2.9 million for the same quarter in the previous year. The Company reported a net loss of $3.6
million for the six months ended June 30, 2020 as compared to a net loss of $0.3 million for the same period
in the previous year.
On April 8, 2020, the Company announced that it sold the shares of its wholly-owned subsidiary 9376-9974
Quebec Inc. to HIVE Blockchain Technologies Ltd. (“Hive”). As c onsideration, Hive issued 15,000,000 of
its common shares (“Hive Shares”) and paid $1,956,231 in cash. In addition, Hive has agreed to invest
$3,000,000 in 9376-9974 Quebec Inc. Thirty days after closing o f the transaction, the Company settled
$221,916 in working capital adjustment to Hive for net cash proceeds of $1,734,315.
As at June 30, 2020, the value of Hive Shares was $4,800,000 an d reflected on the Company’s balance
sheet under marketable securities.
On August 7, 2020, the Company announced that, in order to conserve its cash while it considers acquisition
opportunities or other strategic tr ansactions, the Company (i) terminated the lease of its wholly-owned
subsidiary, Crypto 205 Inc., at its cryptocurrency mining facility in Pointe-Claire, Quebec, effective July 31,
2020, and (ii) terminated the employment contracts of all of its employees, including Chief Executive Officer,
John Kennedy FitzGerald, Chief Financial Officer, Joshua Lebovi c and Chief Operating Officer, Paul
Leggett, effective July 31, 2020.
Mr. Fitzgerald and Mr. Lebovic w ill provide ongoing services to the Company, as Chief Executive Officer
and Chief Financial Officer respectively, pursuant to part-time consulting arrangements.
As of end of day August 27, 2020, the company had cash and marketable securities of approx. $8.4 million
and payables of $0.5 million.
Three Months Ended June 30, Six Months Ended June 30,
Year Ended
December 31,
2020 2019 2020 2019 2019
Net loss and comprehensive
loss from continuing operations $ (3,238,571) $ (1,567,595) $ (5,974,756) $ (4,585,412 ) $ (16,962,291)
Net income (loss) and comprehensive
income (loss) (1,364,755) 2,850,926 (3,555,609) (273,432 ) (11,722,599)
Total assets 10,837,605 24,686,641 10,837,605 24,686,641 15,581,954
Total liabilities 1,732,942 36,947,189 1,732,942 36,947,189 38,847,679
Basic and diluted net loss and
comprehensive loss per common
share from continuing operations $ (0.25) $ (0.12) $ (0.47) $ (0.36 ) $ (1.33)
Basic and diluted net income (loss)
and comprehensive income (loss)
per common share $ (0.25) $ 0.22 $ (0.42) $ (0.02 ) $ (0.92)
The financial statements for the three and six months ended June 30, 2020 and the related management’s
discussion and analysis (“MD&A”) are available on Cryptologic’s SEDAR profile at www.sedar.com.
For information or interview please contact:
Joshua Lebovic
Chief Financial Officer
(647) 715-3707
About Cryptologic Inc.
Cryptologic Corp. is currently a cryptocurrency mining company that is focused on divesting its crypto
mining assets and exploring acquisition opportunities in sectors outside of cryptocurrency mining.
Cautionary Note Regarding Forward-Looking Information
Certain statements in this pres s release, including statements with respect to the Company’s position to
enter other aspects of cryptocu rrency mining, contain forward-looking information which can be identified
by the use of forward looking terminology such as "believes", " expects", "may", "desires", "will", "should",
"projects", "estimates", "contemplates", "anticipates", "intends", or any negative such as "does not believe"
or other variations thereof or comparable terminology. No assur ance can be given that potential future
results or circumstances described in the forward-looking statements will be achieved or will occur. By their
nature, these forward-looking statements necessarily involve risks and uncertainties, including the risk that
costs will be higher than anticipated reducing margins, that expense reductions will not be realized, the risk
that the price of power to the Company increases and other risks and uncertainties discussed herein, that
could cause actual results to significantly differ from those c ontemplated by these forward-looking
statements. Such statements reflect the view of the Company with respect to future events and are based
on information currently available to the Company and on assump tions, which it considers reasonable.
Management cautions readers that t he assumptions relative to th e future events, several of which are
beyond management's control, could prove to be incorrect, given that they are subject to certain risk and
uncertainties, and that actual results may differ materially fr om those projected. Other factors which could
cause results or events to differ from current expectations inc lude, among other things, the impact of
general economic, industry and market conditions. Management di sclaims any intention or obligation to
update or revise any forward-looking statements whether as a re sult of new information, future events or
otherwise, except as required by applicable securities laws. Th e reader is cautioned not to place undue
reliance on forward-looking information. The Canadian Securiti es Exchange has not reviewed, approved
or disapproved the content of this news release.