bit gold investor presentation
TRANSCRIPT
GoldMoney Inc.
Caution Regarding Forward-Looking Information
These Slides contain certain “forward-looking information” within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of these Slides. The information in these Slides about the future plans and objectives of the Company are forward-looking information. Other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the Company. Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information.
This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: the Corporation’s limited operating history; future capital needs and uncertainty of additional financing; the competitive nature of the industry; currency exchange risks; the need for the Corporation to manage its planned growth and expansion; the effects of product development and need for continued technology change; protection of proprietary rights; the effect of government regulation and compliance on the Corporation and the industry; network security risks; the ability of the Corporation to maintain properly working systems; theft and risk of physical harm to personnel; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; global economic climate; dilution; and volatile securities markets impacting security pricing unrelated to operating performance. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. 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 information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The Slides and the accompanying verbal presentation are confidential and are being supplied to you solely for your information and may not be reproduced or distributed to any other person or published, in whole or in part, for any other purpose.
Important Notice
These presentation slides (the “Slides”) do not comprise a prospectus or other form of offering document relating to BitGold Inc. (the “Company”), and do not constitute an offer or invitation to purchase or subscribe for any securities of the Company or any other company and should not be relied on in connection with a decision to purchase or subscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or purchase securities of the Company or any other company. Your attention is drawn to the risk factors set out below.
Everything about how commerce works is in flux…
• how and where people shop; • how businesses sell to consumers; • how people move money;• how people interact with financial institutions; • the very nature of money itself.
Every one of these things is being reimagined on a global scale.
“No matter where you live in the world gold has effortlessly held its
commodity value over time relative to costs like food and energy that we
require as humans, making it one the most important savings tools for
most of the human population”
GoldMoney Inc.
USD AUD CAD CHF CNY EUR GBP INR JPY
2000 -3.0% 14.8% 1.9% 3.0% 7.5% 6.6% 4.7%
2001 2.0% 12.3% 8.7% 6.5% 8.8% 5.0% 5.4%
2002 24.7% 13.3% 22.8% 5.7% 6.4% 13.1% 23.9%
2003 21.1% -8.5% 0.6% 7.6% 1.7% 9.9% 14.8%
2004 5.4% 1.4% -2.1% -3.5% 13.6% -3.1% -2.4% 0.5% 3.7%2005 20.0% 28.9% 15.4% 37.8% 21.3% 36.7% 33.0% 24.2% 37.6%2006 23.0% 12.6% 23.0% 14.2% 18.7% 10.6% 8.3% 20.8% 24.4%2007 30.9% 18.3% 12.1% 21.7% 23.3% 18.4% 29.2% 16.5% 22.9%2008 5.6% 31.3% 30.1% -0.1% -2.4% 10.5% 43.2% 28.8% -14.4%2009 23.4% -3.0% 5.9% 20.1% 23.6% 20.7% 12.7% 19.3% 26.8%2010 27.1% 13.3% 21.3% 15.4% 22.8% 37.1% 31.4% 22.3% 11.4%2011 10.1% 10.2% 13.5% 11.2% 5.9% 14.2% 10.5% 31.1% 4.5%2012 7.0% 5.4% 4.3% 4.2% 6.2% 4.9% 2.2% 10.3% 20.7%2013 -28.3% -16.2% -23.0% -30.1% -30.2% -31.2% -29.4% -18.7% -12.8%2014 -1.5% 7.7% 7.9% 9.9% 1.2% 12.1% 5.0% 0.8% 12.3%2015 -5.0% 9.7% -6.9% -6.9% -2.4% 3.4% -3.7% -0.9% -4.9%
Average 10.2% 9.5% 9.5% 7.3% 8.5% 9.9% 10.9% 12.7% 11.0%Total 162.5% 151.5% 151.3% 116.7% 101.6% 158.7% 174.6% 203.8% 132.2%
Over Time Gold Outperforms as a Store of Value vs Fiat Currency
GoldMoney Inc.
Modern Day Money 2.0Heavily leveraged to CreditDigital fiat ledgers; fast and convenient, negligible interest on depositsThe Rise of #FinTech
“Gold is a significant percentage of global base-money,
owned in every country & across every income segment,
but with no modern ‘banking’ or payment apps.”
GoldMoney Inc.
Modern Day Money 3.0An Optimal Currency for Global Commerce
We Have this opportunity at BitGold!A digital platform that connects global users physical-gold to global payment rails with real time settlement—enabling self directed savings and payments…
…A Global Operating System for Gold
GoldMoney Inc.
Corporate OverviewGoldMoney Inc.
Focus Matters
The Convergence of Gold and Technology to become one of the fastest growing FinTech companies globally of 2015
GoldMoney Inc. is a mission-driven Canadian Corporation. delivering full-reserve financial services powered by our innovative real-time gold settlement technology.
We believe their is a strategic benefit to showcase how leading fintech companies can work with banks. We are an innovative thought leading fintech company with a global mandate, but we operate in a framework that is within regulatory guidelines and BSA best practices, we are pro Canada and seek to build a solid foundation with local financial partners.
GoldMoney Inc. (TSX-V:XAU) (“GoldMoney”), is a global full-reserve and gold-focused financial services business
• Launched May 4th, went Public May 14th, On July 20, 2015 BitGold Inc. completed C$59.4MM acquisition of GoldMoney Network Limited
• Following the amalgamation, the company's parent name was changed from BitGold Inc. to GoldMoney Inc.
• Operate 2 separate services. GoldMoney.com and BitGold.com
GoldMoney Inc.
Capital Structure & Financings
54.5mm shares O/S following completion of GoldMoney acquisition and June financing
▪ 7mm warrants & options (3.9mm warrants forceable at C$1.35 strike)
▪ Founders own and control over 20mm shares and continue to invest in
▪ Other Key Investors include the The George Soros Family and Eric Sprott
▪ $21.0mm in bought deal financing in June 2015, backed by Albert Friedberg,
▪ Completed $59.4mm acquisition (11.1mm shares issued) of GoldMoney in July 2015
▪ First consolidated BitGold-GoldMoney operating financials in Sep 30 quarter
▪ $30 million in cash & liquid assets (~$5 million additional post warrant exercise)• No material liabilities, obligations or encumbrances• Quarterly Net cash expenditures of $2 million
GoldMoney Inc.
The World’s Most Trusted Precious Metal Custodian
Through GoldMoney® the company offers precious metals custody, trading and execution, wealth management and research to individual investors and institutions.
GoldMoney Inc.
BitGold is a self directed platform to purchase, store, save, spend and send gold payments instantly
Buy GoldWithin 1% of official gold price
Spend GoldAt any point of sales with a GoldMoney PrepaidCard
Store GoldOver 10 physical Brinks locations
GoldMoney Inc.
Josh CrumbFounder & Chief Strategy Officer
Former Sr. Metals Strategist at Goldman Sachs
Alessandro PremoliChief Technology Officer
Decade+ experience in encryption, cryptography, digital signatures
Roy SebagFounder & CEO of GoldMoney Inc.
Former Portfolio Manager Long/Short Equity, Essential Equity
Multi-Disciplinary TeamThe GoldMoney teams builds on decades of experience in financial services, investment management, e-commerce & payments, software engineering, UX/UI design, cryptography, digital security, compliance, commodity market trading & macroeconomics
Darrell MacMullinCEO - BitGold
Former Head of PayPal Canada,eBay, FinTech Advisor
Katie SokalskyChief Financial Officer
Former auditor with PWC, financial services expertise
GoldMoney Inc.
Central Bank
$5.5 BillionBitCoin Total Value
$6.5 Trillion$70 Billion traded daily
Gold Total Value
Bitcoin BitGoldVS. VS.
✓ Gold outperforms every Fiat Currency✓ Proprietary Digital Ledger Technology Stack✓ Closed Loop Global Debit Network ✓ Global Access and Very liquid✓ Reversibility of transactions✓ KYC / AML regulation friendly✓ No counter party risk✓ Buyer / Seller protections✓ Real insured physical value of goods
✓ Protections, ✓ Regulations, AML, KYC• Global Currency FX Friction• Counter Party Risk
(money leveraged - credit) • Open networks • Inflation / Value Risk
✓ Digital Ledger (Decentralized)✓ Global Currency✓ Developer Friendly• No regulation• No protections• No reversibility of transactions• No physical underlying asset
“With BitGold, you are not outside of the regulatory system,
but you do move outside of the banking system that provides less friction
for global payments. A Gold based ledger is a better ledger than fiat
currency for global internet commerce.”
GoldMoney Inc.
Customers access one global platform over
the internet using PC, Mobile, and connecting
existing payment networks
Legal, Compliance,
Audit
•Third Party Audit •Bank-Level AML/KYC•Tax Lot Accounting
Aurum
BitGold ”Aurum” Digital Ledger IP & Technology is a leap forward indemocratizing the access of Gold
Aurum Proprietary Global Pricing Ledger & ExchangeConsolidated feed from Counterparties quoting Bid/Ask Spreads in each Vault Location 24/7
Global Vault OperatorsProvide Security, Storage,Transportation, Insurance, Accounting, Redemption
Global Digital Value ProcessorsBank ACH, SEPA, Debit, Visa, MasterCard, China Union PayBitcoin, Interac, Wire
GoldMoney Inc.
3 Horizon Framework for Growth & Innovation
01
02
03
Reinvent Gold Buy / Sell ProcessNear Instant payment and settlement from any fiat currencyEnable Gold Savings accounts & deposit base ecosystem
Introduce Gold PaymentsPre-Paid Card global purchases New Innovative P2P Value transfers
Gold OS — Merchant NetworkEnable BitGold Global Business PaymentsDistributed API Gold Rail into ecomm, invoice, & payment platforms
GoldMoney Inc.
1• Modernize Settlement• Democratize Gold Savings• Build a Global Gold Ecosystem
EXECUTION
Reinventing the Gold Buy/Sell Process
GoldMoney Inc.
The Friction that exists in Buying Gold
ETF
Initial purchase fee(0.66%+) Costly for average investor Storage, Insurance & Transpiration
MER fees (0.4%) Long Settlement 5-7 days Delayed period to ownership
Not easily transferable
No payment system No payment system
Generally no ownership of underlying metal Premium to spot price
Liquid
Inefficient, Expensive, ineffective payment system
Gold
Low fee (1% of spot)
No storage cost
No Insurance cost
Payment system
Affordable—no minimum, fractional amounts
Redeemable in physical gold
Liquid
Efficient, inexpensive, Plug-And-Play
GoldMoney Inc.
How BitGold WorksSimply Powerful
Bank Transfer Bitcoin Visa Debit Credit Card China UnionPay Interac
Deposit Funds from a Variety of Sources
Deposit Funds into the Vault of your Choice
Toronto, New York, London, Zurich, Dubai, Hong Kong, or Singapore
Funds In
1%
GoldMoney Inc.
How BitGold WorksSimply Powerful
Bank Wire Credit Card Physical Gold
Redeem/Sell Physically or Electronically
Funds Out
1%
GoldMoney Inc.
Unprecedented PricingOwn physical gold at within 1% of the official gold price
Multiple Deposit OptionsCash via BitGold ATM, Bank Wire Transfer, All Major Credit and Debit Cards, China UnionPay, INTERAC, and SEPA
It's Your GoldEvery gram of gold in your account is your property: fully reserved, allocated, and redeemable under Bailment Law in Canada as per our Customer Agreement.
Storage Fees on UsFree storage at private vaults secured by Brinks in Dubai, Hong Kong, London, Singapore, Toronto, and Zurich, among others
Fully Insured100% insurance coverage on your gold value through the London market by The Brinks Company
Tax ToolsUsing gold for payments may generate a taxable gain or loss depending on your country of residence. We provide a tax tool for end of year accounting in local currency
Removing Friction to access the world best performing currency
True Gold Ownership + Utility
BitGold Summary of Monthly KPIs – November 2015BitGold users total is now 517,086 from over 150+ countries. 21% increase MoM
Net Gold Deposits on the platform are now over 380k grams (approx $17.5 million CAD)Transaction growth on the BitGold platform is more than 560k grams….nearly 1.6x for every deposit
33,014
62,629
168,002
242,264
323,034
427,238
517,086
0
125,000
250,000
375,000
500,000
May June July Aug. Sept. Oct. Nov.
Cumulative # of global users
28,881
78,883
153,109
243,427
346,733
446,542
563,461
0
125,000
250,000
375,000
500,000
May June July Aug. Sept. Oct. Nov.
Platform Transaction Volume (Au Grams)
24,377
63,555
118,207
180,366
245,879
302,426
380,364
0
125,000
250,000
375,000
May June July Aug. Sept. Oct. Nov.
Gold Deposit in Vaults(Au Grams)
Threshold to Relevance - First 1 Million usersOutpacing in first 6 months of growth with users in 100+ countries
GoldMoney Inc.
Money Transfers – More than $600B of remittances money goes around the world.
Average Transfer = $200Average Cost to send = 7.6%Source: World Bank
GoldMoney Inc.
Welcome to Money without Borders – Send Money using Gold
Use Gold as a Payment Rail1. Sender uses local currency from bank, credit or debit card to buy Gold
2. Gold stays in vault. Title is transferred from sender to receiver 3. Receiver Keeps Gold or converts to the currency you want for only 1%
GoldMoney Inc.
Strong Business Model
✓ Large market opportunity✓ Transaction-based revenues✓ Efficient customer acquisition ✓ High operating leverage✓ Low capital requirements
A Great Standalone Business
✓A large and growing opportunity in Gold Buying and Savings✓Global Framework to address a Global market opportunity ✓A strong leadership position ✓Technology Competitive advantages in platform, pricing and global scale
Rapid User and transaction growth
Exponential transaction utility
GoldMoney + BitGold = unparalleled operating system for Gold
GoldMoney Inc.
The internet is transforming from an internet of communication to an internet of value, or “internet of money”. This transformation will have profound effects on
the financial services industry by democratizing access to the global economy, potentially integrating up to 4 billion un-banked and under-banked over the next 25 years. This transformation provides opportunity for leadership in linking the
growing market for digital-transactions to gold, a globally neutral asset uniquely positioned to secure digital values and empower individuals.
Are You In?
GoldMoney Inc.
334 Adelaide St. West 3rd FloorToronto, OntarioM5V 1R4 Canada
[email protected] 1-800-854-7418 ir.bitgold.com
GoldMoney Inc.
To execute on our mission and grow a long term business sustainably, thus maximizing long-term shareholder value, we must alwaysinvest in our clients and the security and integrity of our network. The GoldMoney network and the shared business architecture through the platform is designed to follow 3 core principles:
Putting client interest first• We seek a network-growth business model where we deliver more value to each customer than we expect to earn in return; where the
long term return on investment in customers provides returns to all network stakeholders with increasing efficiency, productivity, and scaling transaction income growth
Know our clients, protect from money laundering, protect clients & the network• The GoldMoney network is a closed network built with decentralized checks and balances and unlike bitcoin or other crypto currency
networks, the closed ledger network of BitGold allows for KYC protections that help prevent money laundering, fraud, and consumer
• The closed network approach allows GoldMoney to operate within regulatory requirements and integrate safely with partners in banking, dealing, payment networks and vault services
Full-asset reserve services, minimize exogenous risk for all users of the network • We believe core savings and payments services can operate using gold and technology without the need for fractionally reserved
deposits or securitized IOUS
Common Values & Network Principles