Vancouver, B.C., May 11, 2023. MineHub Technologies Inc. (TSXV: MHUB, OTCQB: MHUBF) (“MineHub” or the “Company”) is pleased to announce the Company’s inaugural reporting of projected Annual Recurring Revenue (“ARR”¹) of CAD $2 Million and anticipates an acceleration of user growth and ARR throughout 2023, reflecting MineHub’s market-leading position among digitized commodity supply chains. MineHub expects that by the end of 2023, approximately 130 companies will be enrolled on its platforms, servicing the copper, aluminum and steel markets.
In addition, MineHub reports that it has achieved cost synergies through its recent acquisition of Waybridge that will reduce the Company’s timeline to anticipated profitability, including:
- A larger and more diversified base of large corporates providing recurring revenue-generating contracts
- Anticipated reductions of approximately 20-25% in operating costs
- Additional potential revenue from existing customer base
- Shortened sales cycles and time to revenue
MineHub’s CEO, Arnoud Star Busmann, said, “We are witnessing very strong network effects as existing customers expand usage across their own supply chains. MineHub is helping market-leading firms get ahead of the digitization trend to maintain market share and profitability in a rapidly changing competitive landscape. New legislation around materials’ provenance, as well as carbon emissions and ESG reporting, means outdated manual processes for physical commodity movements will soon be too expensive or even unfeasible.”
“We have heard from countless companies in the commodities industry that they have been waiting for a solution to emerge for digitizing the sale, purchase, transportation, and financing of raw materials. With the support of market leaders such as BHP, Sumitomo and Codelco, we believe MineHub is that solution, and on track to become the industry standard for modern supply chain management.”
¹ARR is a Key Performance Indicator for the Company. We consider ARR a key indicator of future recurring revenues and the trajectory of the business. ARR includes annualized revenue of all active SaaS platform revenue as of a specified point in time and assumes all active contracts are renewed on existing terms. ARR is subject to change through acquisition of new customers, and expansion or attrition of existing customers. ARR is not a standardized measure and may not be comparable to ARR disclosed by other issuers.
Note Regarding Forward-Looking Statements
This press release includes forward-looking statements which may differ materially from actual results. We believe the expectations and assumptions made regarding ARR are reasonable and appropriate in the circumstances based on information presently available. Reliance should not be placed on forward-looking statements as we cannot provide assurance, they will prove to be correct. Projected ARR at the end of 2023 assumes additional customer acquisitions and retention of active customers. The number of expected enrolled companies by the end of 2023 assumes successful onboarding of acquired customer counterparties under the Waybridge transaction which closed in March 2023. An update of projected ARR and enrolled companies would be provided should the projection change materially, in accordance with applicable securities laws. A significant amount of ARR is denominated in United States dollars (and not the Canadian Dollar). As a result, movements in exchange rates will have an impact on ARR.
Further to the Company’s press release of March 21, 2023, and first closing announced on April 18, 2023, the Company has applied to the TSX Venture Exchange for an extension of a further 30 days price protection in order to close another tranche of the private placement. Proceeds from the private placement will be used for general working capital, further platform development; sales and marketing efforts to drive further customer adoption and increased revenue.
MineHub provides enterprise-grade digital solutions that connect buyers, sellers and financiers within physical commodities supply chains in a digitally integrated workflow powered by data that is useable, shareable, verifiable and unforgeable. Users of MineHub solutions are in full control of their supply chains, enabling them to optimize their use of resources, respond better and faster to disruptions, and provide a better customer service. Global enterprises already use MineHub solutions as part of their logistics, compliance, trade management and financing operations.
Arnoud Star Busmann
CEO, MineHub Technologies Inc.