Saltire Capital Ltd. Reports 2024 Annual Financial Results
TORONTO, March 20, 2025 /CNW/ - Saltire Capital Ltd (TSX:SLT) (TSX:SLT) ("Saltire" or the "Company"), today reported its financial results as at and for the year ended December 31, 2024. The Company's audited consolidated financial statements ("Financial Statements") along with its management discussion and analysis have been filed on the System for Electronic Document Analysis and Retrieval Plus ("SEDAR+") and may be viewed by shareholders and interested parties under the Company's profile on SEDAR+ at www.sedarplus.ca. All references to "$" herein are to United States Dollars.
Qualifying Acquisition and Private Placement
As previously announced, Saltire (formerly FG Acquisition Corp., a special purpose acquisition company) successfully completed the acquisition of Strong/MDI Screen Systems, Inc. ("MDI") on September 25, 2024 (the "MDI Acquisition"). The MDI Acquisition together with the launch of Saltire's new investment platform constituted Saltire's qualifying acquisition ("Qualifying Acquisition"). As consideration for the MDI Acquisition, Saltire issued to Strong Global Entertainment Inc., MDI's parent company and the vendor under the MDI Acquisition, 1,972,723 common shares ("Common Shares") in the capital of Saltire (valued at $10 per share) and 900,000 series A preferred shares (with an aggregate $9 million initial redemption value) as well as approximately $0.8 million in cash (collectively, the "Acquisition Consideration"). Simultaneously with the completion of the Qualifying Acquisition, the Company also completed an offering of 433,559 Common Shares at a price of $10.00 per Common Share, for gross proceeds of approximately $4.3 million on a private placement basis (the "Private Placement").
2024 Annual Results
For the year ended December 31, 2024, the Company reported net operating income of $1.8 million, compared to net operating income of $3.4 million for the year ended December 31, 2023. The decline in net operating income was primarily attributable to certain non-recurring expenses related to the Qualifying Acquisition, as well as an increase in the Company's operating expenses as a public company.
The net loss for the year ended December 31, 2024 was $47.3 million, which includes the $44.6 million listing expense pursuant to RTO accounting discussed below, as well as a $2.0 million loss on change in fair value of warrants liability that is a non-cash liability subject to quarterly fair valuation.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") for 2024 produced a loss of $46.0 million, which includes the $44.6 million Listing Expense pursuant to RTO accounting discussed below, as well as $2.0 million loss on change in fair value of warrants liability that is a non-cash liability subject to quarterly fair valuation. EBITDA for 2023 was $3.6 million (2023 was neither impacted by RTO accounting, nor by change in fair value of warrants liability since the results of standalone Saltire were only included in Financial Statements from the date of MDI Acquisition). Adjusted EBITDA for 2024 was $2.7 million, as compared to $3.6 million in 2023. The decline in Adjusted EBITDA was driven by certain non-recurring expenses associated with the Qualifying Acquisition and increased expenses as a public company. "EBITDA" and "Adjusted EBITDA" are non-IFRS measures. See "Non-IFRS Measures" below.
"We are pleased to have launched Saltire as a public company and report our first year's results post MDI acquisition", said Andrew Clark, CEO of Saltire. "Saltire has a number of initiatives under way in 2025 which we believe will build considerable ...
