VANCOUVER, British Columbia, May 27, 2022 (GLOBE NEWSWIRE) -- RAYL Innovations Inc. ("RAYL" or the "Company"), provides an update on the Company's planned Initial Public Offering (the "IPO"); and announces changes to management team and Board of Directors.
Upon completion of materially all broker due diligence mid-December 2021, the Company and its broker determined that equity markets were not conducive to a FinTech IPO due to a sharp decline in capital markets (see Figures 1 and 2 below). Subsequent to December 2021 the markets have continued to decline, and while the Company desires a public listing of its securities, investor support for growth stage companies is limited. At the point where capital markets are conducive to new IPO's the company will reengage with its Broker and reinitiate the IPO process.
Figure 1 and 2: As at May 19, 2022
Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0866d187-f8a7-4de4-aa7a-64b979ccfcd4
Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d1f0c018-3161-4174-bc71-4ba34d5e2650
Nicholas Jeffery, the Company's CEO and Director commented:
"The FinTech market, and broader stock markets globally, are riding a tumultuous downtrend causing most IPO's and equity offerings to be postponed. We've been listening to commentary that benchmark stocks in our sector have had more than 50% of their market capitalization ("market cap") wiped out, while small cap technology issuers, have in many cases, lost more than 70 ? 80% of their respective market caps. As we've all experienced on a personal level, the Russian invasion of Ukraine, and ongoing supply chain issues have further exacerbated the problem.
For RAYL, we have kept our head down, focused on the product development cycle and feel that our multi-pronged strategy has been validated not only by McKinsey & Company's publication of Global Payments 2021: Transformation Amid Turbulent Undercurrents, but also by the market-leading player, Block. On March 19, 2022, Block held their first Investor Day since 2017 with Jack Dorsey, Block's CEO, outlining their company's future, stating ?we are no longer just a payments company.' Interesting to note... we knew from the outset that ?payments only' was the wrong strategy.
Against some initial doubts, RAYL did get it right two years ago - our interconnected portfolio strategy adds real actionable insights for the merchant and SME businesses through RAYL.Apptive and being able to integrate RAYL.Pay (our merchant payment platform) shortly, the value will only increase. So RAYL is on plan to deliver the product, and we will be issuing further updates on RAYL.Pay in the coming weeks.
As for the IPO, honestly, I am pleased we decided to delay the process given global dynamics and FinTech market conditions. This might have been a very different communication if we had progressed with the IPO without due consideration Q4-2021.
On a separate note, hopefully most of you have seen the new website (www.rayl.com), which has been injected with new content, dramatically improving the customer journey from initial interest to sign-up for all parts of our Web3.0 upgrade.
For ongoing updates on the Company's activities, the following links will be useful:
If you have any questions, do not hesitate to reach out to me, I am delighted to take your calls and share your thoughts and ideas. My contact details are noted below:
I would love to hear from you; if you have any questions, do not hesitate to reach out. I am excited to say you will continue to receive exciting corporate and product announcements regularly. We truly thank you for your continued support of RAYL's vision to forever change the merchant payment market."
Pursuant to the IPO delay noted above, the Company has reduced overhead costs significantly, focusing budget on continued IT development and RAYL.Apptive sales strategy implementation.
As a result, the Company has on-shored the IT leadership to Canada, and Mr. Nicholas Jeffery and Mr. Jeremy Wright will continue as the sole remaining Directors and Officers of the Company. When the Company reinitiates the IPO process, the resigned Directors have expressed interest to be reappointed as Directors.
About RAYL Innovations Inc.
RAYL Innovations Inc. ("RAYL") is a Canadian, Vancouver-based, FinTech company founded in 2020, offering business application solutions for SME business owners and merchants through RAYL.Apptive and RAYL.ApptivePro; and will be positioned in the short-term to provide integrated payment processing and other financial solutions. While our direct competitors only offer payment services, RAYL has the potential to add tremendous value to businesses by integrating key business solutions, financial services, and data analytics, with a unique pricing strategy all on one integrated and interoperable platform.
For further information on the Company, its management team, RAYL.Apptive and ApptivePro, and our plans for RAYL.Pay, and RAYL.Financial, please visit our website at www.rayl.com.
ON BEHALF OF THE BOARD
"Jeremy Wright, CPA, CMA"
Director & CFO
For Further Information Contact:
Jeremy Wright, CPA, CMA, Director (604)837-7990
Unless otherwise denoted, all currencies in Canadian Dollars.
This news release may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements.
This news release may contain forward-looking statements and information concerning RAYL Innovations Inc. ("the Company"); and includes its wholly owned subsidiaries; RAYL Business Solutions Inc., and Post Socratic Ventures Inc.
The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions concerning the success of new product development, the Company's ability to integrate acquired businesses and complete strategic acquisitions of additional business and other factors that affect demand for the Company's products.
Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the Company's actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to expenditures and other factors that affect demand for the Company's products, industry competition, the need to effectively integrate acquired businesses, uncertainties as to the Company's ability to implement its business strategy effectively in Canada and the United States, labor, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments, political and economic conditions and the Company's ability to attract and retain key personnel.
Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and not to use future-oriented information or financial outlooks for anything other than their intended purpose. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether, as a result of new information, future events or otherwise, except as required by law.
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