Voleo Implements Cost Saving Plan
Voleo Implements Cost Saving Plan
May 7, 2020
VANCOUVER, CANADA, Voleo Trading Systems Inc. (TRAD: TSX-V, VLEOF: OTC-QB) (“Voleo”,
the “Company”) announces that it is proceeding with additional cost saving initiatives to conserve cash
during the continued global uncertainty resulting from COVID-19 . The principal cost saving initiative will
be achieved by winding down its US client operations. Voleo wil l retain its US FINRA registered broker
dealer but will remove the costs associated with maintaining cl ient accounts at this time. This step will
conserve cash, while also providing optionality for Voleo to deploy its technology on an international basis
across various verticals including gaming, e-sports, sports betting, cryptocurrency and stock trading.
Voleo’s platform has provided a robust client experience, and the results from over 1,500 early adopters
have provided proof of concept. There is a low cost of customer acquisition. An average club has 10
members per club and 46% of Voleo users are women. Further, ove r 60% of clients add contributions
each month, with a new record set in April of 76%. However, des pite this accelerated growth, the costs
of maintaining the client accounts outweigh the benefits of mai ntaining them at this time. This proof of
concept has demonstrated there is significant value in the platform that can be unlocked once additional
funding is obtained.
Mark Morabito, Executive Chairman, said “Voleo has already demo nstrated that its award-winning
platform is best-in-class as a social trading app. Our subscrip tion model has proven effective, and the
lack of trading revenue in a zero-commission world reduces the attractiveness of operating a discount
brokerage. In the current environment our focus is identifying strategic partners to deploy the technology,
either to their retail clients or across new verticals.”
The unwind of the US client business is expected to be complete d by June 30, 2020. Voleo is taking
these actions now to ensure the responsible and orderly wind up of US client operations and a smooth
customer transition experience for Voleo USA, Inc’s clients. Ef fective immediately, Voleo will stop
onboarding new users and waive subscription charges for existing clients. Voleo will keep clients informed
and supported as they transition their assets.
These actions allow Voleo to retain its considerable intellectu al property, as well as the US brokerage
licence, awaiting a better economic climate for funding. Togeth er, Voleo’s innovative team with the help
of our customers have built the world’s best investment club so ftware. The Voleo Trading Systems
software suite includes the award winning Voleo investment club app as well as the SimuTrader app that
has been used in three consecutive student trading competitions in collaboration with Nasdaq. Voleo’s
streamlined onboarding experience has several applications in t he financial industry and the patent
pending club-based decision-making and voting modules can be ut ilized for many international
applications in stock trading, e-sports, gaming, sports betting, cryptocurrency and other fields.
In conjunction with the previously announced restructuring, we believe the cost saving plan is in the best
interests of shareholders and will preserve capital, strengthen the balance sheet and enable Voleo to
explore the business opportunities that lie ahead when market conditions improve.
Glen Wilson, who had already waived his salary, has tendered hi s resignation as Interim CEO and
Director. The Board of Directors thanks him for his dedicated s ervice to the Company over the past six
years.
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Consolidation and Shares for Debt Update
Voleo also announces that its previously announced consolidatio n of its common shares (“common
shares”) on the basis on the basis of (1) post-consolidation sh are for every ten (10) pre-consolidation
shares (the "Consolidation") will be effected on Friday, May 8, 2020. The Company’s post-consolidation
common shares will be posted for trading on the TSX Venture Exc hange at the opening of trading on
Monday May 11, 2020, under the current symbol "TRAD" and new CUSIP number 928649201.
The Consolidation will result in the number of issued and outst anding common shares of the Company
being reduced from 108,148,907 common shares to approximately 10,814,890 common shares on a non-
diluted basis, and each shareholder will hold the same percenta ge of common shares outstanding
immediately after the Consolidation as such shareholder held immediately prior to the Consolidation.
The exercise price and number of common shares of the Company i ssuable upon the exercise of
outstanding stock options, warrants or other convertible securi ties will be proportionately adjusted to
reflect the Consolidation in accordance with the terms of such securities. No fractional shares will be
issued as a result of the Consolidation. Any fractional shares resulting from the Consolidation will be
rounded down to the next whole share, and no cash consideration will be paid in respect of fractional
shares.
Registered shareholders that hold physical share certificates will receive a letter of transmittal requesting
that they forward pre-consolidation common share certificates t o the Company's transfer agent, TSX
Trust, for exchange for new share certificates representing common shares on a post-consolidation basis.
In addition, on May 11, 2020 the Company will complete the prev iously announced settlement of
approximately $223,195 of debt due to certain creditors through the issuance of 892,780 common shares
(post-Consolidation) at a deemed price of $0.25 per share. The common shares will be subject to a
statutory four month hold period that ends on September 12, 2020.
About Voleo Trading Systems Inc.
Voleo is a mobile fintech company that is transforming the retail investing space through its powerful,
collaborative investing platform. As the only social investing app and end to end investment club
solution, Voleo increased retail investor participation in the stock market by breaking down barriers to
entry, facilitating trust and improving financial literacy. Voleo's equity trading platform operates on
native iOS and Android devices, as well as a companion web application. The product is being white-
labeled for financial institutions around the world as an innovative product to engage, retain and acquire
retail customers.
About Voleo USA, Inc.
Voleo USA, Inc is a member of Financial Industry Regulatory Authority (FINRA) and Securities
Investor Protection Corporation (SIPC). Security products are not FDIC insured, not bank
guaranteed, and will fluctuate in value. We do not solicit, recommend, or offer investment advice.
Check the background of Voleo USA, Inc. on FINRA's BrokerCheck.
For more information on Voleo, please visit our Investor Relations website at ir.myvoleo.com.
ON BEHALF OF THE VOLEO BOARD
“Mark Morabito”
Executive Chairman
For further information regarding this press release, please contact:
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Voleo Investor Relations
+1-778-945-8721
Cautionary Note Regarding Forward-Looking Information
Certain statements contained in this release constitute forward-looking statements and forward-looking information (collectively referred to herein
as "forward-looking statements") within t he meaning of applicable Canadian securities la ws. Such forward-looking statements rel ate to future
events or Voleo Trading Systems Inc’s (the “Company”) future performance, the wind-up of US operations, the completion of the Consolidation
and Shares for Debt Settlement. All statements other than statements of historical fact may be forward-looking statements. Such forward-looking
statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect",
"forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These
statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ m aterially from
those anticipated in such forward-looking statements. Voleo belie ves the expectations reflected in those forward-looking statem ents are
reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this
release should not be unduly relied upon. These forward-looking statements speak only as of the date of this release, or as of the date specified
in the documents incorporated by reference into this release, as the case may be. In particular, this release contains forward-looking statements
pertaining, but not limited to: expectations as to future operations of the Company, future market trends, growth opportunities , the Company’s
go to market strategy, future partnerships, global uncertainty as a result of COVID-19, new initiatives and innovations of the Company, product
offerings, the expected operations and performance of the Company’s business, potential verticals for use of the Company’s product, and the
timing of key development milestones.
With respect to forward-looking statement s contained in this release, the Company has made assumptions regarding, among other t hing: the
accuracy, reliability and applicability of t he Company’s business model; the timely receipt of governmental approvals, includin g the receipt of
approval from regulators in Canada and the United States; the impact of COVID-19 on the Company’s operations; the timely commencement of
operations by the Company and the success of such operations; t he ability of the Company to implement its business plan as inte nded; the
legislative and regulatory environments of the jurisdictions where the Company will carry on business or have operations; the i mpact of
competition; and the availability of financing to execute the business plan. The Company has included the above summary of assumptions and
risks related to forward-looking statements pr ovided in this release in order to provi de investors with a more complete perspec tive on the
Company’s current and future operations and such information may not be appropriate for other purposes.
The live Voleo platform is currently limited to U.S. residents. Investors should be aware that investing through clubs requires that members of a
club vote in accordance with the conditions of their respective partnership agreemen ts, and that other factors including platfo rm performance,
execution price, order and account access ti mes are affected by many factors, includi ng connectivity, market volatility, the si ze and type of
order(s), market conditions, system performance, and other factors. Investors should carefully consider the risk profile of ETFs before investing
in them, and read the prospectus from the issuer before inve sting in an ETF. Penny stocks may trade infrequently, which means t hat it may be
difficult to sell penny stock shares once you own them. Moreover, because it may be di fficult to find quotations for certain pe nny stocks, they
may be difficult, or even impossible, to accurately price. For these, and other reasons, penny stocks are generally considered speculative
investments. Consequently, investors in penny stocks should be prepared for the possibility that they may lose their whole investment.
Readers are cautioned that the foregoing lists of factors are not exhaustive and it would be unreas onable to rely on any such f orward-looking
statements and information as creating any legal rights, that the statements and information are not guarantees and may involve known and
unknown risks and uncertainties, and that actual results may differ (and may differ materially) and objectives and strategies may differ or change
from those expressed or implied in the forward-looking statements or information as a result of various factors. The forward-looking statements
contained in this release are expressly qualified by this cautionary statement. Except as required by applicable securities laws, the Company is
not under any duty and do not undertake any obligation to publicly update or revise any forward-looking statements after the date of this release
or to conform such statements to actual results or to changes in the Company’s expectations and the Company disclaims any intent or obligation
to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise.
Neither the TSX Venture Exchange nor its Re gulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.