Ether Capital Corporation Reports Annual 2021 Financial Results

TORONTO–(BUSINESS WIRE)–Ether Capital Corporation (“Ether Capital” or the “Company”) (NEO: ETHC) announces the reporting of its financial results as at and for the three months and year ended December 31, 2021.

As at December 31, 2021:

• The total value of the Ether and Staked Ether held by the Company was $203.5 million
• The total assets of the Company were $220.3 million
• The total shareholders’ equity of the Company was $219.8 million
• The Company recorded revenue during the year of $1.5 million and a net loss for the year of $0.10 per share
• The Company recorded a gain on other comprehensive income (OCI) of $161.5 million during the year, which was primarily the result of the net change in unrealized gain on fair value revaluation of the Company’s digital intangible assets

Excluding any staking rewards to-date, the Company’s current Ether and Staked Ether balance is 44,061, reflecting a market value of approximately $164.4 million. As at March 23, 2022, the gross value of the assets of the Company, consisting of its Ether and Staked Ether balance valued as at March 23, 2022 as well as the Company’s Wyre investment valued as at December 31, 2021, amounted to $170.6 million. On a per basic common share basis, with basic common shares being those outstanding as at March 23, 2022, this represents $5.05 of gross asset value per basic common share.

Brian Mosoff, Ether Capital’s CEO said: “2021 was an active year for Ether Capital and I am pleased with our progress. We began generating material revenue from our agreement with Purpose relating to their ETF products. We also began to recognize revenue from staking following our significant allocation of 10,240 Ether to Ethereum staking in mid-December, a commitment that has only grown so far in 2022 and will continue to grow. We’ve added meaningfully to the management team with the addition of Shayan Eskandari as CTO in 2021 and, more recently in 2022, with Ian McPherson as President & CFO and Jillian Friedman as COO. We intend to be aggressive in 2022, focusing on development of unique IP as a complement to our core asset ownership of Ether. We continue to look for opportunities to generate productive returns on our asset base, and to develop our product roadmap for new products and services.”

For audited financial statements for the year ended December 31, 2021, please refer to the Company’s website at http://ethcap.co/. The Company also provides regularly updated disclosure of its investments in the investors section of its website.

The Company’s audited financial statements, along with the accompanying management’s discussion and analysis have been filed on the System for Electronic Document Analysis and Retrieval (“SEDAR”) and may be viewed under the Company’s profile at www.sedar.com.

About Ether Capital Corporation

Ether Capital is a Toronto-based technology company whose long-term objective is to become the central business and investment hub for the Ethereum and Web 3 ecosystem. Ether Capital has invested in Ethereum’s native utility token “Ether” as a strategic asset, and selectively invests in projects, protocols and businesses that leverage the Ethereum ecosystem and Web 3 technologies. Founded by a highly experienced Board of Directors and management team, Ether Capital has the experience and relationships to support businesses and invest in industry-shifting disruptive technologies. For more information, visit http://ethcap.co/.

The content of this document is for informational purposes only, and is not being provided in the context of an offering of any securities described herein, nor is it a recommendation or solicitation to buy, hold or sell any security. The information is not investment advice, nor is it tailored to the needs or circumstances of any investor. Information contained on this document is not, and under no circumstances is it to be construed as, an offering memorandum, prospectus, advertisement or public offering of securities. No securities commission or similar regulatory authority has reviewed this document and any representation to the contrary is an offence. Information contained in this document is believed to be accurate and reliable, however, we cannot guarantee that it is complete or current at all times. The information provided is subject to change without notice and neither Ether Capital Corporation, nor any of its affiliates, will be held liable for inaccuracies in the information presented.

Non-GAAP Measures

The Company’s condensed consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this press release, the Company discloses the gross value of its assets and the gross value per basic common share, which are non-GAAP financial measures. These non-GAAP measures are not defined by IFRS, do not have a standardized meaning and may not be comparable with similar measures presented by other issuers. The Company has presented such non-GAAP measures as management believes they are relevant measures of the value of the Company’s underlying assets. Non-GAAP measures should not be considered as alternatives to the information set out in the Company’s financial statements.

Forward-Looking Information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements in regard to the Etherum ecosystem. The Company cautions the reader not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Generally, but not always, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “on pace”, “anticipates”, or “does not anticipate”, “believes”, and similar expressions or state that certain actions, events or results “may”, “could”, “would”, “should”, “might”, or “will” be taken, occur or be achieved.

Forward-looking statements are based on information available to management at the time they are made, management’s current plans, estimates, assumptions, judgments and expectations. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: general business, economic, competitive, geopolitical, technological and social uncertainties; uncertainties in regard to the development and acceptance of blockchain technology (including proof of stake and Ethereum 2.0), and the Ethereum platform and anticipated timing and impact of the Ethereum network upgrade, the impact of the outbreak of the COVID-19 coronavirus on the Company, and the other risk factors discussed in the Company’s Annual Information Form dated March 23, 2022, the Risk Factors section in its most recently filed management’s discussion and analysis, the Risk Factors section in its Supplement and Base Shelf Prospectus and its other filings available on-line at www.sedar.com. Although the forward-looking information contained in this press release is based on assumptions that the Company believes to be reasonable at the date such statements are made, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. In addition, the Company cautions the reader that information provided in this press release is provided in order to give context to the nature of some of the Company’s future plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update or revise any forward-looking information, except in accordance with applicable securities laws.

Contacts

Brian Mosoff

Chief Executive Officer

[email protected]

Ashley Stanhope

Director of Communications

[email protected]