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Investing is better.
Together.
fully customizable social
trading application
Corporate Presentation June 2019
TRAD:TSX-V
myvoleo.com | ir.myvoleo.com
Forward-Looking InformationThis presentation contains forward looking statements and forward looking information (collectively, “forward looking statements”) within the meaning of applicable securities laws. These forward looking
statements relate to future events or the future performance of Voleo Trading Systems Inc. (“Voleo”, the “Company”). All statements other than statements of historical fact may be forward looking statements. In
some cases, forward looking statements can be identified by terminology such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, or the negative of
these terms or other comparable terminology. These forward looking statements are only predictions. Actual events or results may differ materially. In addition, this presentation may contain forward looking
statements attributed to third party industry sources. Undue reliance should not be placed on these forward looking statements, as there can be no assurance that the plans, intentions or expectations upon which
they are based will occur. By their nature, forward looking statements involve numerous assumptions and known and unknown risks and uncertainties, both general and specific, which contribute to the possibility
that the predictions, forecasts, projections and other forward looking statements will not occur. Forward looking statements in this presentation speak only as of the date of this presentation.
Forward looking statements in this presentation include, but are not limited to, statements with respect to expectations as to future operations of Voleo; use of proceeds; timetable to achieve business objectives
and milestones; user growth; revenue projections; Voleo' business model and strategy, the criteria to be considered in connection therewith and the benefits to be derived therefrom, including the anticipated
desire for the Voleo application; impact of governmental regulation; expected operating costs, general administrative costs, costs of services and other costs and expenses; ability to meet current and future
obligations; treatment under governmental regulatory regimes; and ability to obtain equipment, services and supplies in a timely manner.
Although the Company believes that the expectations reflected in the forward looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. None of the Company,
or its affiliates can guarantee future results, levels of activity, performance or achievements. Moreover, neither the Company, its affiliates nor any other person assumes responsibility for the outcome of the forward
looking statements. Many of the risks and other factors are beyond the control of the Company, which could cause results to differ materially from those expressed in the forward looking statements contained in
this presentation. The risks and other factors include, but are not limited to: failure to realize the anticipated benefits of being a public company; failure to operate and grow Voleo’s business effectively; the
availability of financial resources to fund the Company’s expenditures; impact of competition and the competitive response to the Company’s business strategy, including the competitive response from existing
financial services firms and potential new market entrants which may compete with the Company; protection of intellectual property; third party performance of obligations under contractual arrangements;
prevailing regulatory, tax and other applicable laws and regulations; network security risks and theft and risk of products offered by the Company; the effects of product development and the need for continued
technology change; stock market volatility and market valuations; risk related to cryptocurrencies; uncertainty in global financial markets; and the other factors.
These factors should not be considered exhaustive. With respect to forward looking statements contained in this presentation, the Company and Voleo have made assumptions regarding, among other things: the
impact of increasing competition; conditions in general economic and financial markets; current technology; cash flow; future exchange rates; timing and amount of capital expenditures; effects of regulation by
governmental agencies; future operating costs; and the Company’s ability to obtain financing on acceptable terms. Readers are cautioned that the foregoing list of factors is not exhaustive and that additional
information on these and other factors that could affect the Company’s operations or financial results is discussed in this presentation. Copies of these documents are available on SEDAR at www.sedar.com. The
forward looking statements herein are expressly qualified by this cautionary statement. The Company is not under any duty to update or revise any of the forward looking statements except as expressly required
by applicable securities laws.
Information is provided in this presentation comparing Voleo' proposed business model to other financial services providers including self-directed brokers, robo advisers, thematic applications, copytrading
applications and social media applications (collectively, the "Peer Companies"). The Peer Companies have been included in this presentation based on Voleo management's belief of the similarity of the business of
the Peer Companies to the proposed business model of Voleo. Information on the Peer Companies was obtained from public sources and has not been verified by Voleo. All of the individual comparables
presented herein are speculative and have inherent risks that are associated with each Peer Company including, but not limited to, operations, cost inflation, financing risk, government taxes and fees, government
regulations and currency exchange rates, which can impact the comparable metrics presented. Factors specific to the operations and financial position of each of the Peer Companies may not in all respects
necessarily be consistent with those of Voleo. Of note, the Peer Companies include companies that may have significant cost advantages over Voleo Investment decisions should not be based solely on the
comparables provided in this presentation due to the inherent risks described herein. The historic information presented with respect to Peer Companies are not indicative of future performance of results. If any of
the comparables herein contain a misrepresentation, an investor does not have a remedy under applicable securities legislation.
Challenges We Address
1. Barriers to traditional investing▪ Investors are deterred by high costs
▪ Investing is time and knowledge intensive
▪ Investing is intimidating and inaccessible
2. Highly competitive and expensive marketplace▪ Financial institutions are losing business to fintech competitors
▪ Banks face very high customer acquisition costs
3. Reaching younger investors ▪ Millennial investors are less satisfied, less loyal and
less trusting when it comes to their investment brokerage2
▪ Financial institutions need secure and reliable digital solutions
1. https://www.cfainstitute.org/-/media/documents/support/advocacy/1801081-insights-millennials-and-investing-booklet.ashx
2. J.D. Power 2019 U.S. Self-Directed Investor Satisfaction Study
3
1
A customizable investing
experience where users can:
✓ Sign up via mobile in minutes
✓ Invite their friends, family,
colleagues to join
✓ Link their accounts
✓ Propose, discuss, vote and trade
on investment ideas
✓ Compete, discuss, compare,
learn, grow, repeat!
4
Meet Voleo
The digital investment club application
designed for the modern investor
▪ Community trading
▪ Social experience
▪ Flexible watchlist
▪ Gamification elements
▪ Educational tools
▪ CRM and marketing support
▪ Comprehensive analytics and reporting
5
The Social Investing Hub
6
Established in the fintech sector FINRA broker-dealer registered in all US states
Collaboration with NASDAQ
Fintech Breakthrough 2019 Best Stock Trading App
Award winner
Cutting-edge technology
iOS, Android and web technology built and maintained
in-house
Unique voting mechanism
Large market opportunity
Scalable B2C platform in US
International B2B pipeline through white-label platform
Opportunities in other verticals – cryptocurrency, etc.
The Voleo Advantage
Online Brokerage
Social Media
Low cost of
digital investingCommunity experience and
the “wisdom of crowds”+We combine:
7
Voleo in the Marketplace
Inve
stin
g E
xp
eri
en
ce
Fo
cu
s
Community Engagement Focus
Copytrading
Thematic
Social Media
Uniquely positioned
to succeed in a
valuable, growing
industry
Robo Advisors
Gamified
Self-Directed
8
Current Mobile Investing Landscape
Registered
customers
Voleo organic B2C
traction to date
AUM (1/100th scale)
Created clubs
User Traction
9
Engaged teams are valuable, long-term customers
▪Average invitations sent per group: 14
▪Invitation to sign-up conversion rate: 70%
▪Age range of users: 18 to 85 – including three-generation
clubs
▪Average club size: 9 (and growing)
▪Average session length: 7 minutes
▪60% of users made a deposit in the last month!
▪Recurring contributions: +50% of users
Participating in Google Partnership Program
effective Q2 2019 to strategically scale and
accelerate user acquisition and growth
Massive Market Opportunity
10
of millennials are
unhappy with how
they currently
invest
67%of millennials put money
aside each month
86%
Millennials that would
change their bank for a
better tech platformJP Morgan Chase Strategic Update, 2018
57%
US Market
Entryway50M
estimated
serviceable
market
Internal Voleo estimate based on an analysis of age and
income demographics in the United States.
Increasing demand for higher
quality mobile apps, with a
broader range of innovative
and personalised services, is
what is driving fintech
"What separates Millennial
investors from previous
generations is not just greater
mobile usage; they're actually
approaching investing in a
fundamentally different way" -
Michael Foy, Senior Director of
Wealth & Lending Intelligence
at J.D. Power
Over the next 30 years, an estimated $30 trillion of
wealth will exchange hands from the baby boomers to
Generation Xers and millennials1
1. https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2018/08/28/the-millennial-wealth-transfer
Monetization Model
B2BWhite Label
Financial institutions
B2CUS Market
Social Investing Hub
✓ Retail investors
✓ Individual accounts
✓ Investment clubs
✓ Credit unions
✓ Community banks
✓ Global financial
institutions
B2BCustom Applications
Bespoke solutions
✓ Tier 1 banks
✓ Cryptocurrency*
✓ Adjacent verticals
Monthly licensing
fees – scalable
based on usage
Revenue share %
of trade fees
Custom
integrations and
development
Marketing fees
and customer
referral fees
11
$12 fee per trade (club)
$ 4 fee per trade (individual)
+80% gross margin is earned on these trading
fees after netting the cost of Apex to clear trades
Premium research and data
Advertising of financial services
*TSX Venture Exchange has restricted any cryptocurrency white-label to regulated exchanges
B2B Opportunity
12
Financial institutions are able to leverage
and co-brand on Voleo’s platform
▪ First pilot announced with OP Financial in Europe
▪ Pipeline of financial institutions from credit unions to major banks
▪ Live in US via FINRA member subsidiary Voleo USA
“For financial institutions themselves, launching a fintech solution
that addresses consumer problems simply, is often far quicker and
a more cost-effective alternative to the traditional product launch.”
- Louise Brett, Head of Fintech at Deloitte
Notable Collaborations & Awards
Nasdaq is a strong supporter
of financial literacy and our
collaboration with Voleo to
help retail investors
understand and participate in
the markets is another step
forward.
Oliver Albers
Global Head of Strategic Partnerships
“
13
Competition Case Studies
▪ Held Q4 2015 – Q1 2016
▪ C$25,000 prize pool
▪ 4.5 month duration
▪ 700+ teams
▪ 15,000+ simulated trades
Voleo Nasdaq
Equity Trading Competition
▪ Held Q4 2017; 2018 event closing
▪ $10,000 prize pool
▪ 10 week duration
▪ 300+ teams
▪ 3,000 simulated trades
Voleo TSX
Equity Trading Competition
14
Filed initial
patent
application in US
First prototype,
alpha-tested by
MBA students
2014
Completed
mobile app MVP
Piloted our
SimuTrader with
TMX Group
2015
Integrated with
clearing broker
Participated in
Accenture FinTech
Innovation Lab,
London
National patents
filed, US and Canada
2016
FINRA registered
across US
Soft launch of
platform
Nasdaq
collaboration
Participated in Plug
and Play Fintech
Accelerator in
Silicon Valley
2017
Enhance
automation and
product features
Pilot announced w/
OP Financial
Active discussions
with tier 1 banks
Product expansion
(crypto, etc.)
2018
15
Our Journey Complete RTO
transaction
Received investment
from FIS
Participating in FIS’
Venture Center
accelerator program
B2C launch with
Google Marketing
Partnership
Launch of Voleo
Teams
2019
16
Voleo’s 2019 Ad Campaign
Capital Structure
17
Cash position $ 3 M
Options & Warrants
Fully diluted
23.2 M
130.8 M
Shares outstanding 107.6 M
Enterprise value $22 M
Market capitalization $25 M
Share Price $0.235(May 31, 2019)
TRAD
Our Team
18
Mark Morabito, BA, JD
Executive Chairman
• 20 years of public market experience including capital raising and corporate development• Founder/principal of numerous successful companies and raised over $1 billion in capital and commitments to
finance their development and attained two NYSE listings• Led the completion of a transaction with China’s second largest steel company (third largest in the world) in its
first foreign investment for a $400 million investment to support the development of a Canadian iron ore mine
Tom Beattie, BComm, CFA
CEO
• 15 years in financial services, investment banking and start-ups• Champion for financial literacy; wants to create a generation of informed, empowered investors
Kate-Lynn Genzel, CPA, CA
CFO
• Served as CFO of five different publicly listed or private companies• Cross-border listing experience
Alana Levine, BA
Marketing Director
• Extensive experience in B2B sales and marketing• Affiliate marketing specialty
Morgen Sullivan, BA, JD
VP Growth
• Former lawyer an in-house counsel• Considerable expertise in business strategy
Gordon Jones, BSc, MBA
VP Product
• 20 years of financial and mobile application development experience• Previously with Broadridge
Anthony Tsui
Technical Advisor
• 20 years of software development, business analysis, testing and support• Previously with Broadridge
Our Board
19
Mark Morabito, BA, JD
Executive Chairman
• 20 years of public market experience including capital raising and corporate development• Founder/principal of numerous successful companies and raised over $1 billion in capital and commitments to
finance their development and attained two NYSE listings• Led the completion of a transaction with China’s second largest steel company (third largest in the world) in its first
foreign investment for a $400 million investment to support the development of a Canadian iron ore mine
Jay Sujir, BA, LLB
Founder, Director
• 20 years experience with Farris and Anfield, Sujir, Kennedy & Durno• 30 years experience acting for public and private companies
Nicky Senyard, BA
Director
•Over 20 years experience in performance marketing, affiliate networks and technology• Built and sold Income Access to LSE-listed Paysafe• Founded Share Results and KewPac
Brad Wiggins, JD, LLM
Director
• Founder and CEO of SecuritiesLawUSA, PC•Many years’ experience as a U.S. securities lawyer, as an SEC staff attorney and private practitioner
Glen Wilson
Director
•Over 25 years experience in the telecommunications industry• Built a national customer service organization to support top clients across Canada
Mark Lotz, CA
Director
• Chartered Accountant with 18 years of experience primarily in the minerals industry and related securities businesses• Served as a senior executive officer for two Vancouver based securities firms and a financial compliance officer for
the Vancouver Stock Exchange
Thank you!
We welcome you to contact us for more information
myvoleo.com | ir.myvoleo.com
20
CORPORATE HEAD OFFICE1240 – 1140 West Pender StreetVancouver, BC, V6E 4G1
Tel: 604-681-8030Fax: 604-681-8039
INVESTOR RELATIONSToll Free: 1-866-684-6730 [email protected]