Stack Capital Group Inc. Reports Q2-24 Financial Results

Stack Capital Group Inc., (“Stack Capital” or the “Company”) (TSX:STCK) today announced its financial results for the quarter ended June 30, 2024. Stack Capital reports all amounts in Canadian Dollars unless otherwise stated.

Company Commentary:

• As at June 30, 2024, Book Value per Share (BVpS) of the Company was $11.24, compared with $11.03 as at March 31, 2024.
• SpaceX announced a tender with a valuation of US$210 billion or US$112 per share, which resulted in a fair value increase of $1.7 million or $0.18 per share for Stack Capital.
• The Company invested $2.1 million (US$1.5 million) into Defence AI LP, a wholly owned special purpose vehicle, which holds a hybrid debt and equity investment in a military defence company, which entitles Stack Capital to annual interest and the underlying assets held.
• Hopper announced two large enterprise deals with Sumitomo Mitsui Card Co. Ltd., the largest credit card issuer in Japan, owned by SMBC Group; and Lotte Card, a leading Korean credit card issuer with 9+ million card members. With both deals, Hopper will power the travel loyalty portal for each credit card partner, enabling their respective cardholders to easily book travel while saving money.
• Omio expanded their partnership with Uber in Europe into Spain. Building on their success in the UK, Uber users in Spain will now be able to book trains through the Uber app, powered by Omio’s unique API.
• Prove Identity announced a strategic partnership with BetMGM, a market-leading sports betting and gaming entertainment company. BetMGM will be using Prove’s Pre-Fill identity solution allowing users to streamline the creating of an account.
• The Company’s cash position as at June 30, 2024, was $11.4 million or $1.25 per share.
• To date, the Company has completed ten investments contributing $10.04 per share as at June 30, 2024, into the following:
  • SpaceX (space exploration & communications)
  • Locus Robotics, Inc. (robotics)
  • Omio, Inc. (travel & leisure)
  • Canva, Inc. (graphic design)
  • Hopper, Inc. (travel & leisure)
  • Newfront Insurance, Inc. (insurance & benefits)
  • Prove Identity, Inc. (cyber-security)
  • Bolt Financial, Inc. (e-commerce)
  • Varo Money, Inc. (neo-banking)
  • Defence AI LP (military defence)

Q2-2024 Highlights

• As at June 30, 2024, the Book Value of the Company was $103.6 million, and the Book Value per Share was $11.24. A detailed summary of Book Value per Share is as follows:

Breakdown of Book Value per Share as at June 30, 2024:
Investment – SpaceXi	$	1.53
Investment – Locus Robotics, Inc.		1.46
Cash		1.25
Investment – Omio, Inc.ii		1.23
Investment – Hopper Inc.		1.19
Investment – Canva, Inc.		1.19
Investment – Newfront Insurance, Inc.		1.19
Investment – Prove Identity Inc.iii		1.14
Investment – Bolt Financial, Inc.		0.55
Investment – Varo Money, Inc.		0.33
Investment – Defence AI LP		0.23
Net other assets		(0.05	)
Book Value per Share	$	11.24

i the Company is invested in Space Exploration Technologies Corp. (“SpaceX”) though a Special Purpose Vehicle, Space LP.ii the Company invested in shares of GoEuro Corp. which carries on business as Omio.iii the fair value of Prove Identity Inc. includes an unrealized deferred gain of $972,091.

About Stack Capital

Stack Capital is an investment holding company and its business objective is to invest in equity, debt and/or other securities of growth-to-late-stage private businesses. Through Stack Capital, shareholders have the opportunity to gain exposure to a diversified private investment portfolio; participate in the private market; and have liquidity due to the listing of the Common Shares on the TSX. At the same time, the public structure also allows the Company to focus its efforts on maximizing long-term performance through a portfolio of high growth businesses, which are not widely available to most Canadian investors. SC Partners Ltd. acts as the Company's administrator and is responsible to source and advise with respect to all investments for the Company.

For more information, please visit our website at www.stackcapitalgroup.com or contact:Brian ViveirosVP, Corporate Development, and Investor [e-mail]

Non-IFRS Financial Measures

This press release may make reference to the following financial measures which are not recognized under International Financial Reporting Standards (“IFRS”), and which do not have a standard meaning prescribed by IFRS:

• Book Value - the aggregate fair value of the assets of the Company on the referenced date, less the aggregate carrying value of the liabilities, excluding any deferred taxes or unrealized deferred gains or losses if applicable, of the Company; and
• Book Value per Share (BVpS) - the Book Value on the referenced day divided by the aggregate number of Common Shares that are outstanding on such day.

The Company’s Book Value and Book Value per Share is a measure of the performance of the Company as a whole. The Company’s method of determining this financial measure may differ from other issuers’ methods and, accordingly, this amount may not be comparable to measures used by other issuers. This financial measure is not a performance measure as defined under IFRS and should not be considered either in isolation of, or as a substitute for, net earnings per share prepared in accordance with IFRS.

Cautionary Note Regarding Forward-Looking Information

This press release contains forward-looking information. Such forward-looking statements or information are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as “proposed”, “expects”, “intends”, “may”, “will”, and similar expressions. Forward-looking information contained or referred to in this press release includes, but may not be limited to the business of Stack Capital and the risks associated therewith, including those identified in the Annual Information Filing under the heading “Risk Factors”.

Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information, but which may prove to be incorrect. Although Stack Capital believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Stack Capital can give no assurance that such expectations will prove to be correct. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the ability to capitalize on investment opportunities. The forward-looking information in this press release reflects the current expectations, assumptions and/or beliefs of Stack Capital based on information currently available to Stack Capital.

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Stack Capital disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events, or results or otherwise. The forward-looking statements or information contained in this press release are expressly qualified by this cautionary statement.