1/28/20 Shane Martin, CFA [email protected] 214-987-4121 MARKET STATISTICS ($CAD) COMPANY DESCRIPTION Exchange / Symbol OTC: VLEOF Voleo Trading Systems Inc. is a cutting-edge Fintech company that delivers to self- Price: $0.05 directed investors the only individual, team and investment club trading app on the Market Cap ($mm): $5.38 market. As an inherently social platform, users of Voleo can collaborate, discuss, Enterprise Value ($mm): $3.76 propose and vote on trade ideas, and follow influencers in the market on the Voleo Common Shares (M): 107.7 Leaderboard using Voleo’s patent-pending platform. Voleo operates as a discount brokerage in the US and is FINRA-licensed in all 50 states. The company offers a Float: 74% bespoke, as well as turn-key white-label solution for financial institutions around Volume (3 Month Average): 76,012 the world looking to enhance their brokerage offering and engage customers in a 52 Week Range: $0.04-$0.30 unique and gamified way. The company is headquartered in Vancouver, Canada. Industry: Information Technology BALANCE SHEET ($mm, except per sh data) 9/30/19 SUMMARY Total Cash: $1.98 • Cutting Edge Technology – Voleo has developed a cutting edge, patent- Total Assets: $2.68 pending, social trading technology for retail investors. The application is Debt: $0.00 available on iOS, android, and web applications. Equity: $2.2 • Registered Broker-Dealer – Voleo is registered in the U.S. as a broker- Equity per share: $0.02 dealer with FINRA, SIPC, and SEC. In addition, the Company also has strategic collaborations with Nasdaq and TMX Group. INCOME STATEMENT • Large Market Opportunity – The Company has a ready-built scalable ($mm, except per sh data) business to consumer (B2C) platform in the United States. Additionally, FY - 12/31 Rev Net Inc EPS the Company also has an international business to business pipeline where Voleo can white-label and create custom solutions for established financial FY17 $0.003 ($0.74) ($0.02) institutions. FY18 $0.011 ($1.37) ($0.03) • Generational Investing Shift – Voleo is positioning itself to capture retail assets from younger investors by offering a differentiated product FY19E $0.021 ($5.9) ($0.05) suite targeted specifically to Millennial and Generation Z individuals. • Flexible Technology - The Company has created a flexible technology KEY BENEFICIAL HOLDERS that will allow eventual expansion into additional asset classes in addition to public equity such as bonds and cryptocurrency. Jay Sujir 11,477,300 • Global Recognition – Voleo has won several awards for its innovative KewPac Investments, Inc. 6,390,000 technology and platform including the FinTech Breakthrough Awards for Best Trading App in 2019. Thomas Beattie 5,621,070 • Gaining Traction – The Voleo application had a soft launch in mid-2017 King & Bay West Management Corp. 3,584,826 and commercial launch with the Company’s first digital marketing Glen Patrick Wilson 3,088,683 campaign in the second half of 2019. The Company has since seen a 60% invitation to sign up conversion ratio along with over 50% of users Mark Morabito 1,988,400 contributing funds on a recurring basis. The Company has also been Brad Wiggins 1,340,895 selected for a pilot program with a European Bank to power their branded, social investment hub. • Breadth of Revenue Generation – Voleo has the ability to monetize STOCK CHART their platform through several different streams including subscription fees, fees on premium research and data, implementation and service fees to institutions, advertising fees, and customer referrals. The Company also receives a share of interest on account balances. • Valuation - We believe that TRAD offers a unique investment opportunity for the marketplace. Due to the early stage nature of the company and the lack of operating history, we have created a scenario analysis on page 7, which details Voleo’s possible revenue ramp. See Important Disclosures and Disclaimers at the end of this report. 1 BUSINESS OVERVIEW trading platform, marketing, customer acquisitions, and general and administrative expenses. Voleo Inc. (TRAD, VLEOF) is a publicly traded fintech company that provides retail investors an innovative, Voleo has created this social platform to address several gamified investing experience via its iOS, Android and web challenges that typical brokerages and investors face: applications. Targeting Millennials and Gen Z that feel they don’t have the time, money, knowledge or confidence to 1. Barriers to traditional investing – Investors are invest, Voleo is a one-of-a-kind, easy-to-use platform that typically surprised by high costs, amount of time and gamifies the investing experience – to help users gain knowledge necessary, and the accessibility of typical confidence as they start their wealth journey. brokerage firms 2. Highly competitive marketplace – financial institutions are facing increased competition for Exhibit 1: Voleo Platform business from new fintech entrants into the market 3. Reaching younger investors – Millennial investors are looking for better ways to invest due to the expense and perceived amount necessary to begin investing Voleo believes their product addresses these challenges and is better suited to meet the needs of a younger investor. The initiation of a Voleo trading account is relatively simple and a user can sign up in minutes. After a user signs up, they have the option of trading individually, joining an existing investing club or creating a new one. Users can invite friends, family and colleagues to join the platform, link their accounts and begin investing together. After an investment club is formed, participants can propose investment ideas. Investment ideas can be long, thought out conclusions or one to two sentences on the specific equity. Users can then engage in a discussion and subsequent vote on whether the group will purchase the security or not. If a predetermined percentage of members vote affirmatively, then the order goes to market. Each member of the club owns a portion of the fund on a pro-rata basis depending on the amount of money contributed. The ownership in the account is calculated on a mark-to-market basis. In addition to being able to track your investment club’s performance, you can also compete against other investment clubs across the world. The addition of a competitive twist makes Voleo fun and Sources: Company Reports unique. Each time a user votes for a trade that the club does not approve, the hypothetical decision is tracked. These Voleo USA Inc. was approved for a FINRA license in mid- features are looked at as an “I told you so” feature Voleo 2016 and beta launched their product in Q2 of 2017. Since refers to as DROID (definitive return on investment 2017 the Company has continually introduced new features decisions). These decisions can be locked in the future. Users and partnerships to improve the user experience including can also follow other clubs and members for ideas based on a enhanced automation, product expansion and launch of transparent history of decisions. Voleo Teams. On May 28, 2019, the Company became public via a reverse merger and subsequent prospectus offering for gross proceeds of USD ~$3,0512,133. The proceeds were used in developing and commercializing its mobile and web equity 2 Exhibit 2: Voleo Proposal only retirement accounts, only 21% reported being very confident in their investing decision making abilities. In addition, 81% of millennials do not use a financial advisor due to the expense or amount of capital necessary to begin working with an advisor. Voleo’s platform addresses these issues by allowing groups to work through investment decisions together, establishing a $50 minimum to open an investing account, and allowing investing clubs to split subscription fees. An internal Voleo analysis of age and income demographics in the United States estimates the Company’s serviceable market at roughly 50 million users. The Company is attempting to actively reach this target market through targeted google ad campaigns and the use of influencers. In June 2019, the Company began participating in the Google Partnership Program to strategically scale and accelerate their user acquisition and growth. Since the initial marketing phase, the Company has begun to see traction on the product noting that the registrations have more than doubled to nearly ten thousand users. In Addition, the Company has released the following statistics: • Invitation to sign-up conversion rate: 62% • Conversion rate to funded user: 35% • Age range of users: 18 to 85 • Average Club Size: 10 • Users making recurring contributions: 60% We also note that Voleo’s trading application is currently only available as a B2C product in the United States. Voleo’s addressable market should significantly increase as they Source: Company Reports expand into additional countries. Voleo has also introduced additional features to improve the Exhibit 3: Growing Market Penetration user experience including educational tools, comprehensive analytics and reporting, watchlists, and will soon release Voleo Teams. Voleo Teams allows users to see what other clubs and investors have bought and sold without being directly tied to their decision making. This feature is designed for those inexperienced with investing clubs who want to track on-going performance as well as those who wish to generate new ideas but make their own decision on when to initiate a position. MARKET OPPORTUNITY Voleo Inc. has the potential to reach a large market of Millennial and Gen Z investors who are struggling to navigate the current challenges to traditional investing. According to Forbes, over the next 30 years, an estimated $30 trillion of wealth will be transferred from the baby boomer generation to the Generation Xers and Millennials. Many of these individuals will lack the knowledge and confidence to invest this money responsibly. According to a CFA institute survey in 2018 of non-investing millennials and millennials with Source: Company Reports 3 The Company has begun to see an increase in revenue from institutions domestically and internationally.