Valour Inc. (NEO: DEFI, OTC: DEFTF, FRA: MB9) is a company “identifying and investing in the future.” The company builds a portfolio of ventures that are accelerating the growth and development of decentralized finance and the digital economy. The company announced several updates about regulator renewals in the USA and Europe. The stock price which was steady at around $0.13 for a month, gained more interest from investors, with a valuation above $0.20 per share.

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Company Overview

Valour Inc. is a technology company that makes it possible for traditional investors to locate and invest in a wide range of digital assets across the decentralized finance and Web3 industries. The company reaps the rewards of the burgeoning market for digital assets and the coming of finance through regulated equity instruments. Valour Inc. is the sole publicly traded business established to give investors access to these developing markets. The Frankfurt Stock Exchange, Nordic Growth Market, and Euronext (Paris and Amsterdam) are just a few of the top European stock exchanges where Valour's exchange-traded products (ETPs) that track the performance of digital assets are listed. The company partnered with two major companies, Hive and Rock X. The decentralized finance (DeFi) ecosystem is the focus of HIVE and Valour's strategic partnership, with applications focused on Ethereum and Miner Extractable Value (MEV). By utilizing MEV applications, HIVE will have a significant opportunity to increase the value of each mining infrastructure deployment. The partnership provides Valour with exposure to one of the biggest Ethereum miners, which is the foundation upon which DeFi applications are built and therefore functions as a crucial supporting element for the sector. The strategic partnership lays out a plan for Valour and RockX to improve the stake components of their current Exchange Traded Product (ETP) infrastructures, co-develop ETP products, and offer institutional staking services, custodian services, and real-time data yield oracles.

With product listings across European exchanges, banks, and broker platforms, Valour provides fully hedged digital asset ETPs with low to zero management fees. The current product lineup from Valour includes low-cost exchange-traded funds (ETFs) for Valour Uniswap (UNI), Cardano (ADA), Polkadot (DOT), Solana (SOL), Avalanche (AVAX), Cosmos (ATOM), Binance (BNB), Enjin (ENJ), and Bitcoin Carbon Neutral. The two flagship products of Valour are Bitcoin Zero and Ethereum Zero, the first fully hedged, passive investment products with fee-free underlyings of Bitcoin (BTC) and Ethereum (ETH).

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On January 10 and 12, the company declared it received the approval in principle from the Jersey regulator JFSC and got its EU-base prospectus renewed by the Swedish regulator SFSA. The company's goal of increasing access to digital assets and facilitating their integration with physical assets has been advanced significantly with this expansion of Valour's product line. By combining exposure to digital assets with other asset classes like equities and commodities, these new products will enable investors to diversify their portfolios and give them access to the advantages of derivative tools like leveraged or capital protection investments. This is an exciting development for Valour as it pursues its goal of facilitating the integration of digital assets with traditional assets and expanding access to them.

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We are pleased to be able to offer additional types of ETP securities to investors under the new base prospectus approval," said Olivier Roussy Newton, CEO of Valour. "This enables expansion of our product line and is a testament to our dedication to providing industry-leading investment opportunities and the necessary infrastructure, security, and collaboration to support the growth and maturation of digital asset.”

Share Structure/Financials

The last financial statement occurred for the period ending September 30, 2022. Valour Inc. had $4.6M in cash, $105.4M in digital assets, $41.2M in digital asses loaned and staked ($152.8M in total current assets). For December 2022, the company had:

• A cumulative net sales totalling $340,693,787;
  
• December net sales valued at $623,905;
  
• Assets Under Mangagement as of December 31: $778,822,607
  

The company generated $295k over the most recent quarter as opposed to $8.6M year over year. This difference ($4M+ in 2021 vs. $250k- in 2022) is primarily explained by the difference between realized and unrealized gain on investments. Operating, general, and administrative costs came to $4.8M, resulting in a $5.8M net loss for the quarter.

The share structure consists of 208.1 million issued and outstanding shares, 20.7 million options with average exercise prices of $1.27 per option, 12.6 million warrants with average exercise prices of $0.25 per warrant, and 10.3 million Deferred Stock Units. The stock's 52-week price range is $0.12 to $4.41. Valour Inc. is traded on the Canadian, American, and German stock exchanges (NEO: DEFI, OTC: DEFTF, FRA: MB9).

Bottom Line

Valour Inc. (NEO: DEFI, OTC: DEFTF, FRA: MB9) is in a good position to overtake other issuers of digital asset ETPs as the industry leader. Retailers and institutions that are unable to directly hold digital assets are driving an obvious and growing market demand. Valour introduced the first fee-free Bitcoin ETP in the world and keeps innovating by most recently releasing the first Cardano and Uniswap ETPs in the world.

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