TORONTO, Sept. 13, 2024 (GLOBE NEWSWIRE) -- Goldmoney Inc. (TSX: XAU) (US: XAUMF) ("Goldmoney" or the "Company"), today announced that it has received exemptive relief ("Exemptive Relief") from Canadian securities regulators allowing it and two of its operating subsidiaries, (collectively the "exempted Goldmoney entities") to continue offering clients in Canada precious metals purchase and storage services to facilitate their precious metals transactions ("Precious Metals Transactions").
The exemption allows the exempted Goldmoney entities to conduct this activity without the need to become registered as a dealer or to deliver a prospectus, subject to compliance with certain terms and conditions. The relief extends to the directors, officers and representatives of the exempted Goldmoney entities.
Clients with Canadian addresses who enter into precious metals transactions and create on-line holdings ("Holdings") with Goldmoney will continue to transact on the Company's online proprietary internet-based platform.
In Canada, the Company services its clients primarily through its wholly owned subsidiary, Goldmoney Vault Inc ("GVI"). Companies, institutions and high-net-worth individuals also can establish a client relationship with Goldmoney Vault UK Limited (United Kingdom) ("GVUK"). GVI or GVUK arrange precious metals storage as agents for clients with third party vault custodians acceptable to Canadian securities regulators.
Roy Sebag, Chairman and Chief Executive Officer of Goldmoney said: "Goldmoney welcomes the granting of this exemptive relief. It eliminates regulatory uncertainty in our Canadian precious metals business and could not have been achieved without the cooperation of the Canadian regulators who took part. We wish to acknowledge these regulators for taking the time to learn about the unique nature of physical precious metal custody."
Unless extended, the Exemptive Relief expires upon the fifth anniversary of the exemption which will occur on September 11, 2029. The order granting Exemptive Relief can end earlier by order of a court or securities regulator or if the law applicable to the exempted Goldmoney entities changes to conflict with or duplicate the content of the order.
The Exemptive Relief applicable to clients with a Canadian address is subject to terms and conditions including:
- requiring, on the earlier of (i) logging into the client platform trading account after the date of the Exemptive Relief and (ii) the first transaction occurring after the date of the Exemptive Relief, the delivery of a risk disclosure statement ("RDS") to each client and prospective client ('prospect") and that a written or electronic acknowledgement be obtained from the client or prospect confirming that the client or prospect has received, read and understood the RDS. Such acknowledgment will be separate from and prominent among other acknowledgements provided by the client as part of the Holding-opening process.
- compliance with business conduct obligations set out in the Exemptive Relief, including acting fairly, honestly and in good faith with respect to clients, handling client complaints appropriately, maintaining minimum working capital requirements; establishing and following conflicts of interests policies including referral arrangements and procedures, compliance with gatekeeper and RDS-delivery obligations, not lending or providing margin or credit to clients or providing recommendations or advice relating to transactions in precious metal or allowing clients to take short positions and not offering bitcoin, ether, cryptocurrencies or other novel or emerging asset classes, or options or other derivatives thereon, to clients or prospects.
- dealing with client Holdings in a specified manner, including by providing to each client, (i) prior to such client's first transaction, certain information that is deemed important about the client's relationship with exempted Goldmoney entities and each individual acting on their behalf, (ii) promptly after each transaction with clients who do not meet statutory sophistication standards, providing written confirmation of the transaction including a description of the transaction, the notional amount, quantity or volume of precious metal transacted, the price paid for such metal, the commission, sales charge, service charge and any other amount charged in respect of the transaction, the particular exempted Goldmoney entity that transacted with the client and whether such entity acted as principal or agent, and the date of the transaction, and (iii) quarterly or more frequently if desired by the client, appropriate Holding statements;
- establishment, maintenance and application of specified policies, procedures, controls and supervision relating to compliance and record-keeping, including business continuity and disaster recovery and
- the Company remaining a reporting issuer listed on the Toronto Stock Exchange.
For further information please contact the Company's Chief Financial Officer:
Sean Ty
Chief Financial Officer
Goldmoney Inc.
+1 647 250 7098
About Goldmoney Inc.
Goldmoney Inc. (TSX:XAU) specializes in the investment and custody of enduring real assets. Through its subsidiaries, the Company offers precious metals trading services to clients, including secure custody and storage solutions. Goldmoney also maintains diversified interests in property investment and jewelry manufacturing. For more information about Goldmoney, visit goldmoney.com.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Forward-Looking Statements
This news release contains or refers to certain forward-looking information. Forward-looking information can often be identified by forward-looking words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "may", "potential" and "will" or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. All information other than information regarding historical fact, which addresses activities, events or developments that Goldmoney Inc. believes, expects or anticipates will or may occur in the future, is forward-looking information. Forward-looking information does not constitute historical fact but reflects the current expectations of the Company regarding future results or events based on information that is currently available. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking information will not occur. Such forward-looking information in this release speak only as of the date hereof.
Forward-looking information in this release includes, but is not limited to, the receipt of Exemptive Relief and the ability of the Company to comply with the prescribed terms and conditions and otherwise continue to operate its business on a compliant and economic basis. This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: the Company's operating history; the ability to establish suitable and robust compliance procedures and controls with appropriate supporting systems; future capital needs and uncertainty of additional financing; fluctuations in the market price of the Company's common shares; the effect of government regulation and compliance on the Company and the industry; legal and regulatory change and uncertainty; jurisdictional factors associated with international operations; foreign restrictions on the Company's operations; product development and rapid technological change; dependence on technical infrastructure; protection of intellectual property; use and storage of personal information and compliance with privacy laws; network security risks; risk of system failure or inadequacy; the Company's ability to manage rapid growth; competition; the ability to identify opportunities for growth internally and through acquisitions and strategic relationships on terms which are economic or at all; the ability to identify and complete the acquisition of suitable real estate investment opportunities on terms which are economic or at all; the ability to successfully operate and manage real estate holdings; the ability to service bank indebtedness and renew such indebtedness on commercially acceptable terms or at all; effectiveness of the Company's risk management and internal controls; use of the Company's services for improper or illegal purposes; uninsured and underinsured losses; theft & risk of physical harm to personnel; precious metal trading risks; and volatility of precious metals prices & public interest in precious metals investment; and those risks set out in the Company's most recently filed annual information form, available on SEDAR+. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, except as required by law.
