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TORONTO, May 25, 2021 (GLOBE NEWSWIRE) — Quisitive Technology Solutions Inc. (“Quisitive” or the “Company”) (TSXV: QUIS), a premier Microsoft Cloud Services and Payment Solutions Provider, today reported financial results for the first quarter ended March 31, 2021.

Management Commentary
“Even with the number of positive milestones and transitions that have occurred year to date, we remain focused on executing our operations during this period of growth,” said Quisitive CEO Mike Reinhart. “We have garnered considerable traction within both divisions of our business and are laser-focused on executing our respective near- and long-term goals. Our team continues to expand our portfolio of offerings to our customers in the cloud solutions business and we are preparing for full commercialization of LedgerPay in the second half of this year. The recently completed acquisition of BankCard and early integration of Mazik Global into Quisitive adds significant accretive value to both segments of our business. Looking ahead, we intend to continue our acquisition strategy to support both the cloud solutions and payments business to further augment our capabilities through the end of this fiscal year. We are encouraged by our progress so far and look forward to further unveiling Quisitive’s potential.”

First Quarter 2021 Financial Results
The Company’s audited financial statements for the quarter ended March 31, 2021 and related management’s discussion and analysis can be found on the Company’s website and on the Company’s issuer profile on SEDAR at All figures are expressed in United States dollars unless otherwise stated.

  • Revenue increased to $12.7 million compared to $10.9 million for the quarter ended March 31, 2020. The increase in revenue was due to organic growth within the cloud services customer base achieved through adding additional engagements and through cross-selling.
  • Gross profit increased to $4.3 million (34% of revenue) compared to $4.0 million (37% of revenue) for the quarter ended March 31, 2020. The increase in gross profit was due to the increase in revenue and the decrease in margin was due to additional recurring revenues from lower margin CSP sales.
  • Adjusted EBITDA increased to $1.2 million (or 9% of revenue) compared to an Adjusted EBITDA of $1.1 million (or 10% of revenue) for the three months ended March 31, 2020. This reflects the growth in top line revenue and lower margin CSP revenue streams in the first quarter of 2021 as well as operational interruptions with the Dallas winter storms in the first quarter of 2021.
  • Net loss was $1.9 million or loss of $(0.01) per share compared with net loss of $4.3 million or a loss of $(0.04) per share for the three months ended March 31, 2020. Net loss was reduced primarily due to the repayment of convertible debentures issued in the acquisition of Menlo in fiscal 2020 that caused significant non-cash mark to market losses in the first quarter of fiscal 2020.

First Quarter 2021 and Recent Operational Highlights

  • Recognized as a 2021 ‘Venture 50’ company by the TSX Venture Exchange.
  • Completed acquisition of Mazik Global Inc.
  • Completed the transformational acquisition of BankCard USA.
  • Announced the closing of C$62.6 million financing transaction in connection with the acquisition of BankCard USA Merchant Services, Inc. and increased the debt facility with Scotiabank by $50 million USD.
  • Announced closing of a private placement with FAX Capital Corp. pursuant to which FAX purchased 16,000,000 common shares of Quisitive from treasury at a price of C$1.25 per Common Share for gross proceeds of C$20,000,000.
  • Achieved Independent Standards Organization 27001 and 22301 certifications for LedgerPay.
  • Executed letter of intent with a major merchant acquiring bank as a sponsor for direct payment processing for Visa, Mastercard, and other major credit and debit card brands.
  • Achieved Microsoft Co-sell ready status for LedgerPay which officially activates Microsoft’s sales team in assisting with commercializing the product.
  • Earned the Windows Server & SQL Migration to Microsoft Azure advanced specialization, a validation of a Microsoft partner’s deep knowledge, extensive experience, and expertise in migrating Windows Server and SQL Server-based workloads to Azure.
  • Accelerated the expiry date of the common share purchase warrants issued on June 26, 2020.
  • Retained payments industry leaders to assist with the execution of Quisitive’s LedgerPay strategy including mergers and acquisitions and payments solutions operations planning.
  • Engaged banking and financial technology industries expert Adrian Martinez as an advisor to the development of Quisitive’s LedgerPay risk management program.

Conference Call
Quisitive management will hold a conference call today (May 25) at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss these results.

Company CEO Mike Reinhart and CFO Michael Murphy will host the call, followed by a question and answer period.

Canada/U.S. dial-in: 800-319-4610
International dial-in: 416-915-3239

Please dial-in approximately 10 minutes beforehand and ask to join the Quisitive conference call. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.

A telephonic replay of the conference call will be available after 8:00 p.m. Eastern time.

Toll-free replay number: 800-319-6413
International replay number: 604-638-9010
Replay ID: 6966        

For additional information, please visit the Investor Relations section of Quisitive’s website at:

About Quisitive
Quisitive (TSXV: QUIS) is a premier, global Microsoft partner that harnesses the Microsoft platform and complementary technologies, including custom solutions and first-party offerings, to generate transformational impact for enterprise customers. Our Cloud Solutions business focuses on helping enterprises move, operate, and innovate in the three Microsoft clouds. Centering on our LedgerPay product suite, our Payments Solutions business leverages the Microsoft Azure cloud to transform the payment processing industry into an entirely new source of customer engagement and consumer value. Quisitive serves clients globally from ten employee hubs across the world. For more information, visit and follow @BeQuisitive. 

Quisitive Company Contact
Tami Anders, Chief of Staff
[email protected]

Quisitive Investor Contact
Matt Glover and John Yi
Gateway Investor Relations
[email protected]

Reconciliation of Non-GAAP Financial Measures – Adjusted EBITDA and Adjusted EBITDA as a percentage of revenue

Financial Measures and Adjusted EBITDA

There are measures included in this news release that do not have a standardized meaning under generally accepted accounting principles (GAAP) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The Company includes these measures because it believes certain investors use these measures and metrics as a means of assessing financial performance. EBITDA (earnings before interest, taxes, depreciation and amortization is calculated as net earnings before finance costs (net of finance income), income tax expense, and depreciation and amortization of intangibles) is a non-GAAP financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.

We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with IFRS. We also disclose and discuss certain non-GAAP financial information, used to evaluate our performance, in this and other earnings releases and investor conference calls as a complement to results provided in accordance with IFRS. We believe that current shareholders and potential investors in the Company use non-GAAP financial measures, such as Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues, in making investment decisions about the Company and measuring our operational results.

The term “Adjusted EBITDA” refers to a financial measure that we define as earnings before certain charges that management considers to be non-operating expenses and which consist of interest, taxes, depreciation, amortization, stock-based compensation (for which we include related fees and taxes), changes in fair value of derivatives, transaction and acquisition-related expenses, US payroll protection plan loan forgiveness, earn-out settlement losses and non-recurring development costs associated with obtaining bank sponsorship and operational certifications required to complete Ledger Pay. Adjusted EBITDA as a percentage of revenues divides Adjusted EBITDA for a period by the revenues for the corresponding period and expresses the quotient as a percentage.

Management considers these non-operating expenses to be outside the scope of Quisitive’ ongoing operations and the related expenses are not used by management to measure operations. Accordingly, these expenses are excluded from Adjusted EBITDA, which we reference to both measure our operations and as a basis of comparison of our operations from period-to-period.

Management believes that investors and financial analysts measure our business on the same basis, and we are providing the Adjusted EBITDA financial metric to assist in this evaluation and to provide a higher level of transparency into how we measure our own business. However, Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues are non-GAAP financial measures and may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues should not be construed as a substitute for net income determined in accordance with IFRS or other non-GAAP measures that may be used by other companies, such as EBITDA. The use of Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues does have limitations. As these acquisition-related expenses charges may continue as we pursue our consolidation strategy, some investors may consider these charges and expenses as a recurring part of operations rather than expenses that are not part of operations.

Cautionary Note Regarding Forward Looking Information

Neither 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.

Forward-Looking Statements: Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future growth strategies and LedgerPay availability. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements.  Such factors include, among others the limited history of operations, lack of profitability, availability of financing, the need for additional financing and the timing and amount of expenditures,  information pertaining to strategy, plans, or future financial performance, such as statements with respect to future revenues, EBITDA, cash flows and other statements that express management’s expectations or estimates of future performance, the anticipated timing of future cash flow and positive EBITDA, ability to successfully execute on corporate strategies, the failure to find economically viable acquisition targets, funding for internally developed technology solutions, client retention and attrition, client demands, reliance on key personnel, economic spending in the IT industry and technological changes in the IT industry. 

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: changes in technology, customer markets and demand for the Company’s services; the efficacy of the Company’s software and product offering; sales and margin risk; acquisition and integration risks; dependence on economic and market conditions including, but not limited to, access to equity or debt capital on favorable terms if required; changes in market dynamics including business relationships and competition; information system risks; risks associated with the introduction of new products; product design risk; risks related to the Company being a holding company; environmental risks; customer and vendor risks; credit risks; tax and insurance related risks; risks of legislative changes; risks relating to remote operations; key executive risk; risk of litigation risks; risks related to contracts with third party service providers; risks related to the enforceability of contracts; risks related to general economic, market and business conditions, including, but not limited to, the ongoing impact of the COVID-19 pandemic; the limited operating history of the Company; reliance on the expertise and judgment of senior management of the Company; risks related to proprietary intellectual property and potential infringement by third parties; risks relating to financing activities including leverage; risks relating to the management of growth; increased costs associated with the Company becoming a publicly traded company; increasing competition in the industry; risks relating to energy costs; reliance on key inputs, suppliers and skilled labour; cyber-security risks; risks related to quantifying the Company’s target market; risks related to industry growth and consolidation; fraudulent activity by employees, contractors and consultants; conflicts of interest; risks related to the cost structures of certain projects; risks relating to certain remedies being limited and the difficulty of enforcement of judgments and effect service outside of Canada; risks related to future dispositions; sales by existing shareholders; the limited market for securities of the Company; price volatility of the common shares of the Company; no guarantee regarding use of available funds; currency fluctuations; and those factors described under the heading “Risks Factors” in the company’s annual information form dated May 15, 2020 available on SEDAR. Although the forward-looking statements contained in this news release are based upon what management of the company believes, or believed at the time, to be reasonable assumptions, the company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.

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