New Risk • Sep 08
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.4% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 28% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (15% average weekly change). Shareholders have been diluted in the past year (2.4% increase in shares outstanding). Announcement • Aug 27
Shift4 Payments, Inc. (NYSE:FOUR) entered into a definitive agreement to acquire Givex Corp. (TSX:GIVX) for approximately CAD 190 million. Shift4 Payments, Inc. (NYSE:FOUR) entered into a definitive agreement to acquire Givex Corp. (TSX:GIVX) for approximately CAD 190 million on August 26, 2024. Under the terms of the Arrangement Agreement, holders of Givex will receive CAD 1.5 for each Givex Shares which implies an aggregate equity value for Givex of approximately CAD 200 million. The consideration will be funded with Shift4's cash on hand. The sell-side termination fee equates to CAD 7.75 million. The deal was unanimously approved by the Givex board of directors on the special committee recommendation. The deal is subjected to approval of the Ontario Superior Court of Justice and Givex's shareholders approval. The transaction is expected to close in November 2024. Canaccord Genuity Corp. acted as fairness opinion provider and financial advisor to Givex Corp. Wildeboer Dellelce LLP acted as legal advisor to Givex Corp. Torys LLP acted as legal advisor to the special committee of Givex Corp. Goldman Sachs & Co. LLC acted as financial advisor to Shift4. Bennett Jones acted as legal advisor to Shift4. Price Target Changed • Aug 26
Price target decreased by 12% to CA$1.50 Down from CA$1.70, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of CA$1.46. Stock is up 224% over the past year. The company posted a net loss per share of CA$0.027 last year. Recent Insider Transactions Derivative • Aug 22
Chief Commercial Officer exercised options to buy CA$115k worth of stock. On the 19th of August, Mo Chaar exercised options to buy 121k shares at a strike price of around CA$0.90, costing a total of CA$109k. This transaction amounted to 25% of their direct individual holding at the time of the trade. Since December 2023, Mo's direct individual holding has increased from 495.00k shares to 616.39k. Company insiders have collectively bought CA$156k more than they sold, via options and on-market transactions, in the last 12 months. Reported Earnings • Jul 31
Second quarter 2024 earnings released: EPS: CA$0.033 (vs CA$0.008 loss in 2Q 2023) Second quarter 2024 results: EPS: CA$0.033 (up from CA$0.008 loss in 2Q 2023). Revenue: CA$20.9m (up 7.4% from 2Q 2023). Net income: CA$175.0k (up CA$1.15m from 2Q 2023). Profit margin: 0.8% (up from net loss in 2Q 2023). Revenue is forecast to grow 6.1% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Diversified Financial industry in Canada. Announcement • May 18
Givex Corp. Announces the Launch of GivexEngageAI Givex Corp. announced the launch of GivexEngageAI an artificial intelligence (AI) platform that enhances customer relationships through data-driven profiles and highly targeted engagement campaigns. GivexEngageAI builds detailed, 360-degree customer profiles based on guests' interactions with a business, such as loyalty accounts, average purchase amounts, transactional information, and more. The future of business interactions is personalized, and companies are looking for the next generation of tailored customer engagement. With EngageAI, business leaders will have streamlined access to data on every customer interaction within a company's technology ecosystem, helping to support data-driven decision-making. Leveraging data from GivexPOS and its related products, such as online ordering, GivexEngageAI harnesses the power of AI to help businesses enhance engagement and drive revenue. With 360° Customer Profiles, companies can gain a complete understanding of the customer and turn previously anonymous visitors into repeat, valued guests. These detailed profiles lay the groundwork for intelligent, automated campaigns that manifest across multiple channels — from push notifications to texts — sending AI-driven recommendations based on purchase history and similar customer profiles. EngageAI also enables automated engagement, maximizing marketing potential and enabling businesses to predict, recommend, and effectively engage with customers. By channelling insightful data through each transaction, GivexEngageAI will enable businesses to immediately launch orchestrated omnichannel customer journeys through multiple built-in channels. To get started, businesses simply select the channels they need at any step of their journey, and add more as their needs expand. Reported Earnings • May 03
First quarter 2024 earnings released First quarter 2024 results: Revenue: CA$20.8m (up 8.6% from 1Q 2023). Net income: CA$492.0k (up CA$1.73m from 1Q 2023). Profit margin: 2.4% (up from net loss in 1Q 2023). Revenue is forecast to grow 4.5% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Diversified Financial industry in Canada. Reported Earnings • Mar 24
Full year 2023 earnings released: CA$0.03 loss per share (vs CA$0.085 loss in FY 2022) Full year 2023 results: CA$0.03 loss per share (improved from CA$0.085 loss in FY 2022). Revenue: CA$80.8m (up 11% from FY 2022). Net loss: CA$3.41m (loss narrowed 66% from FY 2022). Revenue is forecast to grow 4.9% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Diversified Financial industry in Canada. Announcement • Mar 09
Givex Corp., Annual General Meeting, May 10, 2024 Givex Corp., Annual General Meeting, May 10, 2024. New Risk • Jan 02
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.8% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 55% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (2.8% increase in shares outstanding). Significant insider selling over the past 3 months (CA$500k sold). Market cap is less than US$100m (CA$74.2m market cap, or US$56.0m). Recent Insider Transactions Derivative • Dec 25
Insider exercised options to buy CA$251k worth of stock. On the 20th of December, Debra Demeza exercised options to buy 457k shares at a strike price of around CA$0.53, costing a total of CA$244k. This transaction amounted to 33% of their direct individual holding at the time of the trade. Since December 2022, Debra has owned 1.37m shares directly. Company insiders have collectively bought CA$109k more than they sold, via options and on-market transactions, in the last 12 months. Announcement • Nov 29
Givex Corp. Announces New Digital Wallet Integrations Givex Corp. announced two new payment integrations for its online ordering platform, Givex eCommerce: Apple Pay and Google Pay. Givex recognizes the growing importance of these payment methods and is dedicated to delivering solutions that align with evolving consumer preferences. Apple Pay and Google Pay can now be used on both web desktop and native mobile apps, as well as on the Scan /Pay functionality of the Givex eCommerce app. This integration enhances the overall user experience by simplifying the checkout process and providing an additional layer of security through the use of digital wallets. The integration currently supports Chase and Moneris processors in the United States and Canada, with plans to expand to other processors in the near future. Givex is dedicated to ensuring compatibility with a wide range of processors to accommodate the diverse needs of businesses and streamline the adoption of digital wallet technology. With 128,000 active locations across 100 countries, Givex offers leading point-of-sale system GivexPOS, loyalty programs, gift cards, Kitchen Display System (KDS), GivexPay and more. New Risk • Nov 05
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: CA$98k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 55% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (4.7% increase in shares outstanding). Significant insider selling over the past 3 months (CA$98k sold). Market cap is less than US$100m (CA$65.2m market cap, or US$47.7m). Reported Earnings • Nov 02
Third quarter 2023 earnings released: CA$0.01 loss per share (vs CA$0.029 loss in 3Q 2022) Third quarter 2023 results: CA$0.01 loss per share (improved from CA$0.029 loss in 3Q 2022). Revenue: CA$19.6m (up 6.7% from 3Q 2022). Net loss: CA$999.0k (loss narrowed 71% from 3Q 2022). Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Diversified Financial industry in Canada. Announcement • Oct 26
Givex Corp. Launches New Feature for Givex Ecommerce: Customizable and Animated E-Gift Cards Givex Corp. introduced enhancements to Givex's Digital Ecommerce Module. This innovative feature elevates the digital gift card experience by allowing customers to customize, add video and animate their e-gift card deliveries with a personal touch. Brands can also have their Digital Gift Cards delivered with a corporate video message as well. With this new feature, shoppers can infuse their e-gift cards with images, heartfelt video messages, and themes that resonate with the recipient's preferences. The digital gift cards come to life through captivating animations, adding an element of surprise and joy when they arrive in the recipient's inbox. Digital Gift Cards can also be added to digital wallets like Apple and Google Pay for ease of use, and can transact using Apple VAS if processor supported. This exciting addition aligns perfectly with Givex's dedication to ongoing innovation and providing its merchants with cutting-edge technology to make every transaction a meaningful experience. By offering more than just a virtual gift card, Givex empowers shoppers to make their digital gifts truly stand out in the midst of a crowded inbox, transforming them into cherished memories. Reported Earnings • Aug 01
Second quarter 2023 earnings released: CA$0.01 loss per share (vs CA$0.033 loss in 2Q 2022) Second quarter 2023 results: CA$0.01 loss per share (improved from CA$0.033 loss in 2Q 2022). Revenue: CA$19.4m (up 15% from 2Q 2022). Net loss: CA$978.0k (loss narrowed 75% from 2Q 2022). Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Diversified Financial industry in Canada. New Risk • Jul 01
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Canadian stocks, typically moving 14% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 71% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (14% average weekly change). Shareholders have been diluted in the past year (7.0% increase in shares outstanding). Market cap is less than US$100m (CA$55.6m market cap, or US$42.0m). Reported Earnings • Mar 23
Full year 2022 earnings released: CA$0.09 loss per share (vs CA$0.044 loss in FY 2021) Full year 2022 results: CA$0.09 loss per share (further deteriorated from CA$0.044 loss in FY 2021). Revenue: CA$72.9m (up 32% from FY 2021). Net loss: CA$10.1m (loss widened 150% from FY 2021). Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 7.5% growth forecast for the Diversified Financial industry in Canada. Recent Insider Transactions Derivative • Dec 26
President exercised options to buy CA$262k worth of stock. On the 19th of December, Brittain Brown exercised options to buy 563k shares at a strike price of around CA$0.58, costing a total of CA$326k. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. Since March 2022, Brittain has owned 206.25k shares directly. Company insiders have collectively bought CA$1.1m more than they sold, via options and on-market transactions, in the last 12 months. Announcement • Nov 24
Givex Launches Digital Gift Cards in Malaysia and Singapore for Notable Global Luxury Retailer Givex Information Technology Group Ltd. announced the launch of a digital gift card program for a major U.S.-based luxury retailer in Malaysia and Singapore. This partnership began in late 2021 with physical gift card programs in Australia, Hong Kong, Korea, Malaysia and Singapore. In addition to online and physical gift cards, Givex offers an end-to-end solution that can support multi-unit, multi-national chains, including leading point-of-sale system GivexPOS, loyalty programs, Kitchen Display System (KDS), GivexPay and more. The global company has 118,000 active client locations in more than 100 countries. Announcement • Nov 23
Givex Corp., Annual General Meeting, Apr 21, 2023 Givex Corp., Annual General Meeting, Apr 21, 2023. Board Change • Nov 16
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. No experienced directors. No highly experienced directors. Independent Director Rob Munro is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Nov 08
Givex Information Technology Group Limited Delays Providing Shareholder with Requested Documents On November 7, 2022, Inter.Act Venture Fund Inc. announced that Givex Information Technology Group Limited has continuously delayed providing Inter.Act with documentation requested from the Company (the Company Records). Inter.Act stated that prior to requisitioning a meeting of the shareholders of the Company on November 2, 2022, Inter.Act formally requested the Company provide it with the Company Records, including certain minutes and resolutions and other records related to shares of Givex held through intermediaries and depositories. Announcement • Nov 02
Givex Information Technology Group Limited Appoints Divya Kulkarni to Its Board of Directors Givex Information Technology Group Ltd. announced the appointment of Divya Kulkarni to its board of directors. Kulkarni has more than 20 years of sales, marketing, PR, finance, audit and general management experience. She began her career at GE, where she held progressive leadership roles in Finance and Audit across Asia, Europe, Australia and North America, as part of the elite Global Audit Team. Following GE, she created the Internal Audit Division for global mining companies Noranda and Falconbridge and served as a Board Member for a Noranda/Falconbridge joint venture. Since 2015, she has been an entrepreneur leading PR, store design, new store construction and sales and marketing at Showcase, the Home of the Hottest Trends with 125+ stores coast to coast. Kulkarni is also a Director of the Kulkarni Family Private Equity Group with investments in manufacturing, retail, and finance across North America, Europe and Asia. In her spare time, Kulkarni has been a strong advocate for the disabled through Abilities to Work (affiliated with the Government of Canada and Ontario Government) where she has been a Board Member and Treasurer since 2018. She is also a regular supporter of Wilfrid Laurier's MBA and undergraduate Business programs, acting as a Guest Lecturer and Judge for Business competitions. She has been the Keynote Speaker for the Women In Toys Canadian chapters and is also a regular participant at the Deloitte Women's CEO Roundtable. Kulkarni holds an Honors Bachelor of Business Administration (Co-op) from Wilfrid Laurier University. Kulkarni joins Don Gray, Givex CFO Jim Woodside, Michael Carr, Miles Evans and Robert Munro on the Givex Board of Directors. Buying Opportunity • Oct 28
Now 28% undervalued after recent price drop Over the last 90 days, the stock is down 38%. The fair value is estimated to be CA$0.56, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last year. Meanwhile, the company became loss making. Announcement • Oct 06
Givex Information Technology Group Limited Launches Point of Sale System in 21 Prime Pubs Locations in 5 Weeks Givex Information Technology Group Ltd. announced it has launched its industry-leading point of sale system GivexPOS in 21 Prime Pubs locations across Canada, marking the next step in the global fintech company's partnership with leading restaurant franchisor Foodtastic. In 2021, Foodtastic began installing GivexPOS, Customer WebSuite (CWS) and gift card programs across its 650-plus locations, which include Pita Pit, Milestones and 200-unit Second Cup. Givex had been working with Second Cup for more than 15 years, and after seeing the support and efficiencies of the partnership, Foodtastic chose Givex as its long-term partner for the entire system. By utilizing multiple Givex products, Foodtastic and its brands are able to streamline operations and harness valuable customer data to make better-informed business decisions. Prime Pubs operates Irish pubs including Fionn MacCool's, D'Arcy McGee's and Paddy Flaherty's. Givex installed GivexPOS in 21 restaurants across Ontario, Manitoba, Newfoundland and Alberta. Announcement • Aug 24
Givex Promotes Juan Tovar to SVP of Corporate Integrations Givex announced the promotion of longtime employee Juan Tovar to SVP of Corporate Integrations. This news comes on the heels of Givex'smost recent acquisition of UK-based Counter Solutions, LTD., the third acquisition in the last six months. After joining Givex in 2010 as Director of Client Services, Tovar was promoted in 2015 to Vice President of Client Services. In his new role as SVP of Corporate Integrations, Tovar will continue to play a key role in Givex's acquisition growth strategy. Announcement • Aug 16
Givex Information Technology Group Limited (TSX:GIVX) acquired Counter Solutions Holdings Limited. Givex Information Technology Group Limited (TSX:GIVX) acquired Counter Solutions Holdings Limited on August 15, 2022.
Givex Information Technology Group Limited (TSX:GIVX) completed the acquisition of Counter Solutions Holdings Limited on August 15, 2022. Reported Earnings • Aug 10
Second quarter 2022 earnings released Second quarter 2022 results: Revenue: CA$16.8m (up 36% from 2Q 2021). Net loss: CA$3.91m (flat on 2Q 2021). Over the next year, revenue is forecast to grow 7.7%, compared to a 13% growth forecast for the industry in Canada. Announcement • Jul 14
Givex Hong Kong Announces Launch of GivexPOS in Fine Dining Restaurant with Three Michelin Stars Givex Information Technology Group Ltd. announced the upcoming mid-July launch of GivexPOS in a fine dining restaurant with three Michelin stars in Hong Kong, the first in a five-unit, multi-branded restaurant group. Givex is a comprehensive global customer engagement and business insights platform. In addition to GivexPOS, Givex offers gift card and loyalty programs, payment systems and robust analytics to help its clients make efficient business decisions. The recent partnerships in Hong Kong mark the next step in Givex's continued international growth. Reported Earnings • May 16
First quarter 2022 earnings released First quarter 2022 results: CA$0.02 loss per share. Revenue: CA$16.3m (up 26% from 1Q 2021). Net loss: CA$2.58m (loss widened CA$2.57m from 1Q 2021). Over the next year, revenue is forecast to grow 9.7%, compared to a 15% growth forecast for the industry in Canada. Board Change • Apr 27
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. No experienced directors. No highly experienced directors. Independent Director Rob Munro is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Apr 01
Full year 2021 earnings released: CA$0.04 loss per share (vs CA$0.028 profit in FY 2020) Full year 2021 results: CA$0.04 loss per share (down from CA$0.028 profit in FY 2020). Revenue: CA$55.2m (up 7.1% from FY 2020). Net loss: CA$4.04m (down 260% from profit in FY 2020). Over the next year, revenue is forecast to grow 11%, compared to a 19% growth forecast for the industry in Canada. Announcement • Mar 31
Givex Information Technology Group Limited, Annual General Meeting, May 26, 2022 Givex Information Technology Group Limited, Annual General Meeting, May 26, 2022. Announcement • Feb 19
Givex Information Technology Group Limited (TSX:GIVX) acquired Loyalty Lane, Inc. Givex Information Technology Group Limited (TSX:GIVX) acquired Loyalty Lane, Inc. on February 18, 2022. Loyalty Lane and its subsidiaries ended 2021 with annualized revenue of over $4.5 million.
Givex Information Technology Group Limited (TSX:GIVX) completed the acquisition of Loyalty Lane, Inc. on February 18, 2022. Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment improved over the past week After last week's 19% share price gain to CA$1.01, the stock trades at a trailing P/E ratio of 56.6x. Average forward P/E is 29x in the IT industry in Canada. Announcement • Jan 27
Givex Information Technology Group Limited (TSX:GIVX) completed the acquisition of 1157487 Ontario Inc. Givex Information Technology Group Limited (TSX:GIVX) signed a definitive agreement to acquire 1157487 Ontario Inc. for CAD 2.5 million on January 21, 2022. As per the terms of agreement, Givex will acquire all the shares of 1157487 Ontario Inc. for total consideration of up to CAD 2.5 million, CAD 0.5 million of which, subject to the approval of the Toronto Stock Exchange, is payable in common shares of Givex Information Technology Group Limited. 1157487 Ontario Inc. had revenues of approximately CAD 4.6 million in 2021. The transaction is subject to satisfaction of certain closing conditions and is expected to take place in the week of January 24, 2022.
Givex Information Technology Group Limited (TSX:GIVX) completed the acquisition of 1157487 Ontario Inc. on January 25, 2022. Announcement • Jan 22
Givex Information Technology Group Limited (TSX:GIVX) signed a definitive agreement to acquire Kalex Equipment Services for CAD 2.5 million. Givex Information Technology Group Limited (TSX:GIVX) signed a definitive agreement to acquire Kalex Equipment Services for CAD 2.5 million on January 21, 2022. As per the terms of agreement, Givex will acquire all of the shares of Kalex for total consideration of up to CAD 2.5 million, CAD 0.5 million of which, subject to the approval of the Toronto Stock Exchange, is payable in common shares of Givex based on the five-day volume weighted average price of the Givex shares prior to the closing of the transaction. The transaction is subject to satisfaction of certain closing conditions and expected to take place the week of January 24, 2022. Board Change • Dec 03
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 5 new directors. No experienced directors. No highly experienced directors. 1 independent director (4 non-independent directors). Director Miles Evans is the most experienced director on the board, commencing their role in 2021. Lead Independent Director Michael Carr was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. 