Facedrive Inc. (“Facedrive” or the “Company”) (TSXV:FD), (OTCQX:FDVRF), a Canadian “people-and-planet-first” tech ecosystem, yesterday announced its financial results for the fiscal quarter ended June 30, 2021 (“Q2 2021”) and would like to provide this general corporate as a supplement to such disclosure.
Facedrive Foods & Its Growth Involving Selling and Delivering Restaurant Supplies
The Company’s revenues attributable to Facedrive Foods’ food delivery business activities were $4,973,100 in Q2 2021 (as compared to $Nil in Q2 2020). Facedrive Foods’ food delivery revenues include revenues from food delivery services, restaurant commissions and merchandise sales. Initially established as a project within Facedrive in April 2020 and bolstered by the Company’s acquisition of certain assets from Foodora Canada Inc. (July 2020) and the acquisition of Food Hwy Canada Inc. (“Food Hwy”) (October 2020), Facedrive Foods has been able to capitalize on the dramatic shift in consumer and business behavior in the wake of the COVID-19 pandemic and was fulfilling, on average, 4,700 orders per day for the six months ended June 30, 2021 in 19 cities across Canada. As of June 30, 2021, Facedrive Foods had 5,312 restaurant partners and 303,025 registered end-users.
In early 2021, Facedrive Foods expanded its offerings to include a platform for merchandise sales. In addition to the sale and delivery of food items from the Company’s restaurant partners (as described in the paragraph above), Facedrive Foods’ platform has been expanded in 2021 to include the sale and delivery of various merchandise items on a business-to-business basis. Such merchandise inventory is procured, owned and warehoused by Food Hwy (a wholly-owned subsidiary of the Company) and then, once purchased by a business utilizing a feature found in the Facedrive Food app, the merchandise is delivered by the Company to its business customer.
During Q2 2021, Facedrive Foods had total revenues of $4,973,139, of which $2,207,042 was attributable to the sale and delivery of such merchandise on a business-to-business basis. The Company’s merchandise sales through Facedrive Foods’ platform had 2,493 restaurant customers and Facedrive Foods was fulfilling orders at the rate of over 4,000 per month as of June 30, 2021. Facedrive intends to continue with its revenue expansion plans with contemplated geographical and additional product line expansion plans for Q3 and Q4 2021.
Facedrive Health Launches its Back-to-Business Tool Suite for COVID-19
In early August 2021, Facedrive Health initiated the launch of its proprietary Back-to-Business tool suite which is designed to assist businesses in reopening safely during the later stages of the COVID-19 pandemic. The Back-to-Business kit includes a suite of tools comprised of screening, contact tracing, rapid testing kits and health wallet solutions. To date, the Company is impressed with the initial market feedback and adoption. For instance, one element of the Back-to-Business Kit is SafeCheck™, an application that helps restaurants and retail vendor and service providers perform digital screening and contact tracing of customers. Since SafeCheck™’s launch in early August, 2021, Facedrive Health has received commitments to adopt this solution from over 1,500 business customers. Based on the data captured to date, 30% of participating businesses’ visitors have opted to share their details and receive further communications from Facedrive. This provides Facedrive Foods, Facedrive’s food delivery platform, with a cost-effective customer acquisition model, valuable market data, as well as an additional potential revenue stream through in-app advertising.At the same time, Facedrive’s distribution, training and collection program for the Government of Canada’s COVID-19 rapid antigen tests for small and medium-sized organizations, where Facedrive charges a flat fee for each delivery, has seen increasing demand. Within the first month of the program’s announcement, 18,000 tests have been delivered to 500+ SMEs across Ontario, with the second batch of 48,000 tests received for distribution.
Facedrive – Share Price and Market Activity
During recent months and weeks, the Company has experienced significant stock price volatility and it has witnessed unexpected capital market events and shareholder activities. As a result, Facedrive reconsidered some of its contemplated strategic decisions and operational next steps. In particular, the Company has temporarily postponed pursuing a prospective private placement and the Company has also ceased pursuing a specific potential acquisition transaction it had been exploring over the past few months. While Facedrive remains committed to pursuing accretive long-term opportunities, market conditions stabilizing as it relates to the Company will likely be an important pre-condition to completing such transactions.
In light of the recent selling activity of a significant non-management, non-Board member shareholder of the Company (“Major Outside Shareholder Selling”), the Company has also considered the feedback of other early investors and, in the interests of establishing fairness for all shareholders to the extent possible per the Company’s long-held values, the Company has taken the important step of removing certain contractual restrictions on the ability of such early-investors to trade their shares of the Company. In particular, the Company had, in March of 2021, entered into voluntary amended lock-up agreement extensions (the “Amended Lock-up Agreements”) with a number of early-stage investors including members of senior management of the Company today (collectively, the “Early Investors”) that had been initially entered into on or around the time of its going-public reverse takeover in September of 2019 (“Original Lock-up Agreements”). The effect of such Amended Lock-up Agreements was for the Early Investors to voluntarily agree to a more restrictive release schedule than had been established in the Original Lock-up Agreement. However, in light of the Major Outside Shareholder Selling, the Company has agreed to revert to terms found in the Original Lock-up Agreement, which allows for more shares to release from lock-up on an earlier schedule (as contemplated in said Original Lock-up Agreements). In the case of non-executive Early Investors, this means an unlocking of an additional 10 percent of their holdings (above and beyond a 5 percent release at each interval) at the end of each quarter beginning March 31,, 2021. In the case of executive Early Investors, reversion to the Original Lock-up Agreement means 15 percent of their shareholdings being released from lock-up as of the end of each quarter beginning March 31, 2021. The Company will provide additional details about the status of the lock-up agreements once discussions with the Early Investors have been completed, which is expected later in the month.
“At Facedrive, an ESG ‘people-and-planet-first’ organization, we have always tried to strive for a long-term commitment to building value for our shareholders along with equitable principles that treat all stakeholders fairly. The recent trading activity among some outside significant shareholders has caused us to take action to demonstrate our commitment to the principle of fairness, and we feel confident that we are striking the right balance between enforcing long-term commitments to the business and the short-term practical realities for our shareholders. The idea is for Facedrive to continue focusing on long-term value creation by continuing to build out and on the fundamentals of the Company’s consolidated business, which we feel are very positive” – said Suman Pushparajah, incoming Chief Executive Officer of Facedrive.
Facedrive is a multi-faceted “people-and-planet first” tech ecosystem offering socially-responsible services to local communities with a strong commitment to doing business fairly, equitably and sustainably. As part of this commitment, Facedrive’s vision is to fulfil its mandate through a number of services that either leverage existing technologies of the Company or project synergies with existing lines of business.
Facedrive’s service offerings include its: (i) eco-friendly rideshare business, Facedrive Rideshare; (ii) food delivery service, Facedrive Foods; (iii) electric and hybrid vehicle subscription business, Steer; (iv) contact-tracing and connected health technology services, Facedrive Health; (v) e-commerce platform, Facedrive Marketplace; and (vi) e-social platform, Facedrive Social. Facedrive Rideshare was among the first to offer a wide variety of environmentally and socially responsible solutions in the Transportation as a Service (TaaS) space, planting thousands of trees based on user consumption and offering choices between electric, hybrid and conventional vehicles (including, more recently, electric and hybrid vehicles on a subscription basis through Steer). Facedrive Marketplace offers curated merchandise typically created from sustainably sourced materials and linked to social causes. Facedrive Foods offers contactless delivery of a wide variety of foods right to consumers’ doorsteps, with a focus on doing so in a socially and environmentally-conscious manner. Facedrive Social strives to keep people connected in a physically-distanced world through its HiQ and other e-socialization platforms that invite users to interact based on common interests and by offering gamification and mutual community support features. Facedrive Health strives to develop and offer innovative technological solutions to the most acute health challenges including its proprietary TraceSCAN wearable technology for contact tracing.
Facedrive envisions changing the ridesharing, food delivery, e-commerce, social and health tech narratives for the better, for everyone, and is currently operational in Canada and the United States.
For more about Facedrive, visit www.facedrive.com.
100 Consilium Pl, Unit 104, Scarborough, ON, Canada M1H 3E3
Certain information in this press release contains forward-looking information. This information is based on management’s reasonable assumptions and beliefs in light of the information currently available to us and are made as of the date of this press release. Actual results and the timing of events (for example, those related to: (i) Facedrive Foods’ revenue expansion plans with contemplated geographical and additional product line expansion plans for Q3 and Q4 2021; (ii) the continued adoption and commercialization of Facedrive Health’s Back-to-Business tool suite; and (iii) the reversion of the lock-up terms of the Early Investors back to the schedule described in the Original Lock-up Agreements from 2019) may differ materially from those anticipated in the forward-looking information as a result of various factors. Information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. Statements containing forward-looking information are not facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements.
See “Forward-Looking Information” and “Risk Factors” in Facedrive’s Annual Management Discussion & Analysis (MD&A) for the year ended December 31, 2020 (filed on SEDAR on April 30, 2021) and its interim MD&A for the period ended June 30, 2021 (filed on SEDAR on August 30, 2021) for a discussion of the uncertainties, risks and assumptions associated with these statements and other risks. Readers are urged to consider the uncertainties, risks and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. We have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation and regulatory requirements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.