Vancouver, British Columbia- November 28, 2019 – Good Life Networks Inc. (TSXV: GOOD) (FSE: 4G5) (“GLN“, or the “Company“), a programmatic advertising technology company, today announced that it has filed its Q3 2019 financial statements and management’s discussion and analysis for the period ending September 30, 2019, available for viewing on www.sedar.com. All figures are expressed in Canadian dollars unless otherwise stated.
Corporate Update
The sector that GLN operates in experienced a significant shift in its operational and competitive landscape (as expressed in the Company’s September 26, 2019 news release) and this shift had a material negative impact on the Company’s operations, customers and business partners. As a result, the Company generated $751,971 in revenue and incurred a net loss of $3,333,065 in Q3.
Chris Bradley, CEO of GLN, commented, “Following significant changes in the advertising technology landscape, as discussed in GLN’s September 26th, 2019 news release, we continue to reposition the Company and leverage our technology into the customer acquisition space. We have initiated the execution of this strategy with a cannabidiol (“CBD”) online retailer (as announced in GLN’s November 19, 2019 news release). The GLN team and I look forward to sharing the progress on our repositioning efforts with the ultimate goal of increasing shareholder value in the very near future.”
Reconciliation of Adjusted EBITDA
Adjusted EBITDA is a non-IFRS financial measure that we calculate as income (loss) before income taxes, while including additional operating costs, such as general and administration expenses and marketing expenses and excluding: (i) depreciation and amortization, (ii) stock-based compensation expense, (iii) interest expense, (iv) gain or loss on financial instruments and foreign exchange, and (v) funding interest costs. Adjusted EBITDA does not have any standardized meaning under the Company’s IFRS and therefore may not be comparable to similar measures presented by other issuers.
Adjusted EBITDA is a measure used by management and the board of directors of GLN to understand and evaluate its core operating performance and trends. The following table presents a reconciliation of adjusted EBITDA to Net Comprehensive Income (Loss) for the Period (loss before income taxes), the most comparable IFRS financial measure for each of the periods indicated:
| Nine Months Ended September 30, | ||||||
| Adjusted EBITDA | 2019 | 2018 | ||||
| $ | $ | |||||
| Net Comprehensive Income (Loss) for the Period | (23,969,513 | ) | (1,684,776 | ) | ||
| Reporting currency translation adjustment | 365,218 | – | ||||
| Listing fee | – | 2,319,542 | ||||
| Acquisition-related expenses | 109,875 | – | ||||
| Gain on forgiveness of debt | 595,368 | (238,609 | ) | |||
| Write offs | 6,658,478 | – | ||||
| Foreign exchange expense | 269,153 | 37,322 | ||||
| Fair value of change of derivative liability | – | (234,000 | ) | |||
| Bad debt expense | 10,912,449 | – | ||||
| Share-based compensation | 220,278 | 1,219,230 | ||||
| Amortization | 699,257 | 6,252 | ||||
| Financing costs | 670,187 | 33,779 | ||||
| Adjusted EBITDA | (3,469,250 | ) | 1,375,638 | |||
The GLN Story
GLN’s patent pending technology was previously the engine that sat between advertisers and publishers. One of the advantages of this technology is that it does not collect PII (Personal Identifiable Information). Following a significant change within GLN’s core market, this technology is currently being repositioned into the customer acquisition space to help online retailers find customers on a commission basis. The Company initially intends to target the CBD and gaming space.
GLN is headquartered in Vancouver Canada and trades on the TSXV under the stock symbol “GOOD” and The Frankfurt Stock Exchange under the stock symbol 4G5. For further information on the Company, visit www.glninc.ca
CONTACT
Investor Relations
investors@glninc.ca
Chris Bradley, CEO
Jesse Dylan, Executive Chairman
604 265 7511
Neither the 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:
This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws (“forward-looking information”) concerning the Company’s business plans, including, but not limited to, anticipated developments in the Company’s operations in future periods and other matters that may occur in the future. In certain cases, forward-looking information can be identified by the use of words such as “will”, “it’ll”, “opportunity”, “target”, “can reach”, “expects”, “plans”, “should”, or “future” or comparable terminology. Forward-looking information contained in this news release includes, but is not limited to, statements regarding: (a) proposed changes to the Company’s business model and target market; (b) anticipated developments in the Company’s business and operations; (c) proposed changes to the Company’s technology; and (d) future outlook and goals.
Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including, without limitation, assumptions about:
- the Company’s ability to successful reposition its business and leverage its technology
- the Company’s ability succeed in its new target market;
- future economic and competitive conditions;
- general economic, financial market, regulatory and political conditions in which the Company operates;
- anticipated and unanticipated costs; and
- the stability of market prices, values and other economic indicators;
While the Company considers these assumptions to be reasonable, the assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking information. Many assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct. Furthermore, by their very nature, forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, events, results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, without limitation, those related to:
- an increase in competition;
- the failure of the Company to successfully execute its proposed repositioning strategy or leverage its technology;
- the inability to obtain financing needed to fund the continued development of the Company’s business, including the proposed changes to its technology and business model;
- unanticipated obstacles or costs in entering the CBD and gaming space;
- the Company’s inability to manage anticipated and unanticipated costs;
- the Company’s inability to maintain or improve its competitive position;
- market conditions, volatility and global economic conditions;
- industry-wide risks; and
- general risks and uncertainties related to the Company’s ‘s prospects and business strategy.
There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake any obligation to publicly update or revise any forward-looking information other than as required under applicable securities law. Additional information identifying risks and uncertainties is contained in GLN’s filings with the Canadian securities regulators, which filings are available at www.sedar.com.