Vancouver, British Columbia, Canada / TheNewswire / May 31, 2018 - ParcelPal Technology Inc. ("ParcelPal" or the "Company"), (CSE :PKG) (FSE :PT0) (OTC :PTNYF) is pleased to announce their Q1 2018 results. ParcelPal has provided the unaudited financial statements for the first quarter ended March 31st 2018, and has filed the statements on SEDAR. The total unaudited gross revenue for the first quarter of fiscal year 2018 is $612,641.
Q1 2018 Financial Highlights:
- Total gross revenue up 64% in Q1 versus the year ended Q4, December 31st, 2017.
- Total cash on hand is $1,608,263.
- Gross profits of $193,356, representing a gross profit margin of 32%.
- Raised over $1.6 million in equity financing.
- Subsequent to the Q1 ending, the company received $236,557 from the exercise of 2,427,785 warrants.
President and CEO Kelly Abbott states, "As we scale, revenues are starting to ramp and we are continually evolving our technology and logistics to encompass a wider spectrum of product distribution. Further, the company holds a healthy treasury to execute on our current growth initiatives."
TokeIt Technologies Inc. Partnership and Partial Acquisition Discussion
Further to the news release on May 24th, 2018 regarding the TokeIt Technologies Inc. ("TokeIt") partnership and partial acquisition, ParcelPal wishes to reiterate what TokeIt is, what the agreement consisted of, and the benefits for ParcelPal.
TokeIt is a technology company that operates a B2B point of sale software specifically designed for the marijuana industry which focuses on supply chain integrations in dispensaries, distribution centres, and licensed producers. The technology directly integrates with both physical storefronts and online dispensaries and processes all financial transactions through the system. TokeIt´s ecosystem of technology includes debit and credit payment processing, customer verification, invoicing and purchase order generation, "down to the gram" inventory management, and human resource management capabilities with live track and trace store performance metrics.
TokeIt is provincially and federally compliant with current legislation and only partners with complying businesses and dispensaries. The technology itself is robust and services the entire supply chain - from LP, to distribution, to brick and mortar, and now finally to the consumer. ParcelPal is the last puzzle piece for TokeIt as together they extend their reach from seed-to-last mile.
The transaction consisted of the following value-added benefits for ParcelPal:
- TokeIt currently has approximately 50 signed dispensaries in ParcelPal´s delivery zones, which will go live for delivery within the coming months.
- Each dispensary on average has revenues of approximately $250,000 per month, of which all transactions are processed through the TokeIt platform.
- Exclusive North America wide delivery rights for all TokeIt merchants and clientele.
- Access and rights to all consumer data; totaling 15,000+ users on the platform. These users will be driven onto the ParcelPal platform for marijuana delivery.
- Exclusive use and ownership of all TokeIt´s technology (source code) for use in additional verticals (grocery, food, alcohol, etc.). Saving ParcelPal an exorbitant amount of capital to develop.
- This strategic partnership saves ParcelPal capital on sales and implementation staff, business development, research and development, and will greatly lower customer acquisition costs.
- First right of refusal on all financings henceforth.
The agreement consisted of the partnership and partial acquisition of 8% of TokeIt Technologies, Inc. for $250,000 at a valuation at $3,000,000. TokeIt´s current valuation is approximately $5,000,000.
The operational and financial information in this release is based on the consolidated figures in accordance with International Financial Reporting Standard (IFRS)
About ParcelPal Technology Inc.
ParcelPal is a technology driven logistics company that connects consumers to the goods they love. Customers can shop at partner businesses and through the ParcelPal technology receive their purchased goods within an hour. The Company offers on-demand delivery of merchandise from leading retailers, restaurants, medical marijuana dispensaries, and liquor stores in Vancouver and soon in major cities Canada-wide.
ParcelPal Website: www.parcelpal.com
The Canadian Securities Exchange ("CSE") or any other securities regulatory authority has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release that has been prepared by management.
CSE - Symbol: PKG
FSE - Symbol: PT0
OTC - Symbol: PTNYF
Contact: Peter Hinam, Investor Relations - firstname.lastname@example.org
Forward Looking Information
This news release contains forward looking statements relating to the Proposed Transaction, and the future potential of ParcelPal. Forward looking statements are often identified by terms such as "will", "may", "should", "intends", "anticipates", "expects", "plans" and similar expressions. All statements other than statements of historical fact, included in this release are forward looking statements that involve risks and uncertainties. These risks and uncertainties include, without limitation, the risk that the Proposed Transaction will not be completed due to, among other things, failure to execute definitive documentation, failure to complete satisfactory due diligence, failure to receive the approval of the CSE and the risk that ParcelPal will not be successful due to, among other things, general risks relating to the mobile application industry, failure of ParcelPal to gain market acceptance and potential challenges to the intellectual property utilized in ParcelPal. There can be no assurance that any forward looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
The Company cannot guarantee that any forward looking statement will materialize and the reader is cautioned not to place undue reliance on any forward looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward looking statements contained in this news release are expressly qualified by this cautionary statement. The forward looking statements contained in this news release are made as of the date of this news release and the Company will only update or revise publicly any of the included forward looking statements as expressly required by Canadian securities laws.