Midpoint Holdings (TSX-V:MPT) Update: Stock up 51% reaching YTD high since our initial report July 14th + two examples of significant cost savings from a new client

We initiated coverage on Canadian fintech stock, Midpoint Holdings (TSX-V:MPT) on July 14th at 0.22 cents, highlighting a client who saved between $80,000-100,000 on a $40,000,000 international transfer, while also highlighting Midpoint’s virtual IBAN growth strategy (refer to our initial coverage here). Our report got picked up by several financial news publications and volume in MPT increased July 14th-30th. Midpoint reached a new high July 30th, touching 0.335 cents CAD, closing at 0.29. Since then, volume has decreased, with sellers seemingly no longer willing to sell at lower prices.

We are sending this update, because we just received a perfect example illustrating how Midpoint saves all its clients money, not just the rich ones. This week, a colleague decided to try Midpoint’s service for the first time, sending USD to Mexican Pesos, for wires to pay condo fees on his real estate, and to buy a car. These are the results of his estimated savings:

For the condo fees, the recipient bank had to receive at least 73,033 Mexican pesos. With Midpoint, $3,270.92 is being sent, 250 Avios points are awarded, and the client is being charged $16.35 USD for the transaction. If the client sent the wire normally, he would have to send $3,386.30 USD including the bank’s exchange rate and a $30 flat fee on foriegn currency transfers. By using Midpoint, the client is saving 3.01% on the small wire transfer, amounting to $99.03, plus whatever value is placed on the 250 Avios points, easily confirming our math that all wires above $2,000 usd are worth sending with Midpoint.

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The second wire for the car purchase hasn’t been sent yet, but the client did receive quotes. Using Midpoint, $26,603.13 USD must be sent, 2037 Avios points would be awarded, and the client would be charged $133.02 USD for the transaction. If the client sent the wire normally, he would have to send an estimated $27,327.79 USD including the bank’s exchange rate and a $30 flat fee on foriegn currency transfers. Therefore, the client would save 2.21%, or $591.64 USD on the wire by using Midpoint, plus whatever value is placed on the 2037 Avios points.

The total savings for the client on the two wires is $690.67, and 2,287 Avios points.

These are two relatively small wires that won’t move Midpoint’s overall bottom line, but they did gain a new client who will use their service again repeatedly in the future. More money in clients’ pockets, and less money in banks’ pockets is good for everyone. Midpoint’s service is not only valuable to the rich and B2B transactions; there is growth potential in everyday use.

What will move Midpoint’s bottom line is if the company can execute its plan to implement a virtual IBAN system to partner with private placement financiers. In that case, Midpoint could see many more $40,000,000-type payments like they executed in Q1. Look for that in the coming quarters, as we anticipate the growth in the company’s revenue to equate to the growth of the company’s share price.

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Good fortune to all subscribers,

James Harris

www.moneytrendalert.com

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