Fintech
Torrent Capital Ltd. Announces Financial Results for the Year-Ended December 31, 2021
Halifax, Nova Scotia–(Newsfile Corp. – April 18, 2022) – Torrent Capital (TSXV: TORR) (“Torrent” or the “Company”) reports Net Asset Value (“NAV”) increase from $25.5 million ($1.06 per share) to $27.4 million ($1.13 per share) during 2021, representing an increase of 6.6% year over year.
| Trailing Return | Torrent Capital | TSX SmallCap Index | S&P 500 |
| 12 Month | 6.6% | 18.2% | 27.7% |
| 24 Month | 87.8% | 30.0% | 47.5% |
| 36 Month | 158.2% | 46.7% | 90.1% |
| Net Return by year | |||
| 2021 | 6.6% | 18.2% | 27.7% |
| 2020 | 76.1% | 10.0% | 15.5% |
| 2019 | 37.5% | 12.8% | 28.9% |
| 2018 | 33.4% | -20.1% | -6.2% |
| 2017* | 29.8% | 5.9% | 10.3% |
| Since Inception | |||
| Cumulative Return | 346.2% | 24.1% | 96.7% |
| Compound Annual Return | 39.4% | 4.92% | 16.19% |
*6 month period from the date the Company was fully invested on June 30, 2017.
2021 year-end highlights include:
– NAV per share of 1.13, a 6.6% year over year increase from a NAV per share of 1.06 on December 31, 2020.
– Realized gain on investments of $3,475,437 for the year ended December 31, 2021 as compared to realized gains on investments of $7,244,237 for the year ended December 31, 2020.
– Unrealized loss on investments of $299,420 as compared to unrealized gains on investments of $7,312,662 for the year ended December 31, 2020.
– A cumulative return of 346.2% since the launching of Torrent as an Investment Issuer on June 30, 2017, representing a compound annual rate of return of 39.4%.
– Appointment of Mr. Wayne Myles and Mr. Carl Sheppard to the Company’s Board of Directors, effective November 30, 2021.
2021 was a year dominated by the reflation trade as the markets re-focussed on corporate fundamentals and value in light of cost pressures in the system. Commodity related investments performed well, with metals, mining, and energy among the top performers. The Torrent Portfolio returned 6.6% on the year, despite the pullback in some of the Company’s key portfolio sectors, including Technology, and Cleantech.
WildBrain Ltd. was a top performer in Torrent’s portfolio with a share price increase of 92.2% in 2021. Wildbrain has significantly improved its financial flexibility and cash generation, which is restoring confidence from the capital markets. This was further demonstrated by several analyst’s share price upgrades throughout the year. The company has seen growing revenues and earnings through 2021 combined with an improved balance sheet. Torrent remains confident that Wildbrain will continue its turnaround through 2022 as the company further monetizes its IP and delivers on its content strategy.
Kneat.com Inc. ended 2021 with a share price increase of 40.4% in 2021. Kneat graduated to the TSX during the year and continued to deliver rapid growth for its SAAS product. Annual recurring revenue for the year stood at $13.1M, an increase of 174% year over year. Kneat also closed a $22M bought deal financing in Q2 of 2021 putting it on strong financial footing as it continues to scale. Torrent is confident that Kneat is well positioned to deliver on its rapid organic growth plans throughout the coming year.
Clean technology stocks faced a significant pullback, declining by an average of 57.8% in 2021. Despite this sector-wide decline, Torrent’s Cleantech Investment Portfolio held up comparatively well with a loss of 9.4%. Although the sector faced multiple contraction on the back of considerable inflows of investment in 2020, the cleantech sector continues to show high growth potential as secular tailwinds spur innovation. Torrent’s cleantech portfolio consists of high-quality companies that have profitable growth potential in the longer term. Torrent has a long-term time horizon in this sector and remains bullish for the rest of 2022 and beyond for clean technology and ESG.
Torrent’s flexible mandate and ability to diversify allows the Company to reposition its portfolio to reflect the changing sentiment in the capital markets. Currently, Torrent is focussed on companies that are in a strong working capital position, have sound value propositions and are operating in segments of the market with deep secular trends.
“The markets for early-stage issuers remained challenging in 2021 due to a multitude of macro forces that increased market volatility, particularly towards the end of the year. Increasing interest rates and inflation create challenging markets for early-stage companies as future earnings get discounted at higher rates, weighing on valuations. That being said, Torrent is well positioned for the current environment, and we maintain a positive outlook on 2022 as we continue to cautiously navigate the markets from a growth perspective,” stated Wade Dawe, President and Chief Executive Officer of Torrent.
About Torrent Capital
Torrent is a publicly traded Investment Issuer that invests in the securities of private and publicly traded companies. The Company invests in companies that are due to experience accelerated growth or are trading at a discount to their intrinsic value. Torrent offers investors the potential to earn above market returns while providing transparency, daily liquidity and a modest fee profile compared to competing investment products. Currently, the Company is actively researching investment opportunities in the clean technology sector.
For further information, please contact:
Scott Gardner
Chief Investment Officer
(647) 446-7474
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This press release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Torrent disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The reader is referred the Company’s annual financial reporting for a discussion of risks and uncertainties.
NEITHER THE 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.
As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
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