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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

Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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Page 1: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

Investing is better.

Together.

fully customizable social

trading application

Corporate Presentation June 2019

TRAD:TSX-V

myvoleo.com | ir.myvoleo.com

Page 2: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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.

Page 3: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 4: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 5: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 6: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 7: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

Online Brokerage

Social Media

Low cost of

digital investingCommunity experience and

the “wisdom of crowds”+We combine:

7

Voleo in the Marketplace

Page 8: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 9: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 10: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 11: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 12: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 13: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 14: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 15: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 16: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

16

Voleo’s 2019 Ad Campaign

Page 17: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 18: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 19: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

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

Page 20: Investing is better. Together. - Voleo - The Social ... · Social Media Uniquely positioned to succeed in a valuable, growing industry Robo Advisors Gamified ... Held Q4 2015 –Q1

Thank you!

We welcome you to contact us for more information

myvoleo.com | ir.myvoleo.com

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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]