TORONTO, May 30, 2025 /CNW/ - Argo Corporation (TSXV: ARGH), (OTCQX: ARGHF) ("Argo" or the "Company"), a leader in next-generation transit solutions, announced its financial results for the quarter ended March 31, 2025 ("Q1 2025"). All figures are in Canadian dollars unless otherwise noted.
Municipal Deployments
Argo has made significant progress in the commercialization of its Smart Routing$(TM)$ technology. The Company's first municipal deployment in the town of Bradford West Gwillimbury launched in the second quarter of 2025, as previously announced by the Company. Argo also announced its landmark $10.9 million 12-month pilot with the City of Brampton in the second quarter of 2025, anticipated to launch later this year. While revenue from these agreements was not reflected in Q1 2025 results, the Company expects to begin recognizing related revenues in the second and third quarters of 2025. Argo continues to advance a robust pipeline of municipal opportunities, positioning the Company for continued growth.
Research & Development of Smart Routing(TM) Transit System
In Q1 2025, the Company continued its investment in research and development to enhance its proprietary Smart Routing(TM) hardware and AI-powered software ecosystem, including vertical integration hardware onboard its Argo X1 electric vehicles. This end-to-end platform combines real-time routing software, electric vehicles and full-service operations to deliver dynamic, on-demand transit services.
FoodsUp Inc.
The company held a 47.851% interest in FoodsUp Inc. ("FoodsUp") as of March 31, 2025. FoodsUp is one of Canada's leading restaurant supply platforms, with annual revenues of $108 million in fiscal 2024. As previously disclosed, the Company made significant progress towards the divestment of this ownership interest in Q1 2025:
-- Sale of Shares: The Company received approximately $2.5 million in
proceeds from the sale of an aggregate of 5,855 subordinate-voting shares
of FoodsUp Inc.
-- Option Agreements: The Company entered into two option agreements
(collectively, the "Option Agreements") granting the holders thereof the
irrevocable option to purchase up to a total of 45,932 subordinate-voting
shares of FoodsUp. If the transactions contemplated by the Option
Agreements are fully exercised, the Company has the potential to receive
gross proceeds of between $21.6 million and $30.2 million. The Company's
ability to complete the transactions provided for in the Option
Agreements remain subject to any required approvals, including final
approval of the TSX Venture Exchange and approval of the shareholders of
the Company.
In addition, in the second quarter of 2025, the Company announced that its board of directors declared a special stock dividend (the "Stock Dividend") intended to provide its legacy shareholders with their proportionate stake in the net proceeds realized upon the eventual sale by the Company of its ownership interest in FoodsUp. Pursuant to the Stock Dividend, all of the Company's common shareholders of record on August 13, 2025 (the "Record Date") will be entitled to receive, one Preferred Share, Series A of Argo for each common share of Argo held on the Record Date. The payment date for the Stock Dividend is August 20, 2025. Additional details regarding the Stock Dividend can be found in the Company's press release dated May 21, 2025.
For detailed information, please refer to Argo's condensed interim consolidated financial statements for the three months ended March 31, 2025, and 2024 ("Q1 2025 Financial Statements") and its management's discussion and analysis of financial condition and results of operations for the three months ended March 31, 2025, and 2024 (the "Q1 2025 MD&A"), filed on SEDAR+ at www.sedarplus.ca. The following table provides a summary of Argo's financial results for the three months ended March 31, 2025 and 2024:
For the three months ended March 31 2025 2024 REVENUE $512,172 $219,585 Cost of revenue $115,987 $12,956 General and administration 2,570,907 966,946 Operational support 663,431 239,207 Research and development 224,492 49,174 Sales and marketing 10,648 34,802 Provision for trade and other - - receivables Amortization & depreciation 18,490 34,746 Depreciation 25,989 7,584 Total operating expenses 3,629,944 1,345,415 OPERATING LOSS ($3,117,772) ($1,125,830) OTHER INCOME (EXPENSES) Foreign exchange gain/ (loss) (14,791) (40,069) Interest expenses (427,312) (228,616) Interest income - 897 Loss on termination (996,968) - Write-off of accounts payable settlements - 98,202 Fair value gain (loss) on investments 2,726,221 - Gain on sale of investment 105,864 - Share of loss of an associate - (1,083,495) Net income/ (loss) from continuing operations ($1,724,758) ($2,378,911) Discontinued OperationsNet gain/(loss) from discontinued operations, net of tax 497 (489,791) Gain from derecognition, net of tax - 1,341,770 NET GAIN (LOSS) ($1,724,261) ($1,526,932) Cumulative translation adjustment (342) 78,655 Cumulative translation adjustment for discontinued operations - (252,661) NET PROFIT (LOSS) AND COMPREHENSIVE PROFIT (LOSS) ($1,724,603) ($1,700,938) (Loss) Profit per share(Loss) income per share from continuing operations -- Basic and diluted ($0.01) ($0.02) Income (loss) per share from derecognition and discontinued operations - Basic and diluted $0.00 $0.01 Weighted average shares outstanding - Basic and diluted 138,683,002 132,944,615 All figures rounded to the nearest dollar. Prepared in accordance with IFRS.
About Argo
Argo delivers the world's first fully vertically integrated transit system, combining Argo X1 electric vehicles, Smart Routing(TM) technology, and comprehensive operational management in a single end-to-end solution. By integrating every aspect of the transit experience, Argo enables municipalities to augment traditional fixed-route services to dynamically optimized on-demand service while maintaining standard public transit pricing. The company launched Argo School in September 2024 and began its first municipal deployment in Bradford West Gwillimbury in early 2025. Learn more at www.rideargo.com.
Praveen Arichandran, CEO
Argo Corporation
(800) 575-7051
Forward-Looking Information
This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate," "estimate," and "intend," and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. The forward- looking information set out in this news release relates to future events or our future performance and includes, without limitation, statements concerning the recognition of revenue in future quarters, the future growth of the Company, the completion of the completion of the exercise of the options granted pursuant to the Option Agreements by the holders thereof, Argo's ability to obtain all necessary approvals in respect of the Option Agreements and the Stock Dividend, and Argo's intention with respect to the Stock Dividend. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, as described in more detail in the Company's securities filings available at www.sedarplus.ca. Actual events or results may differ materially from those projected in the forward-looking statements, and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law. See "Cautionary Note Regarding Forward-Looking Information", "Financial Risk Management Objectives And Policies" and "Other Business Risks and Uncertainties" in the Company's Q1 2025 Financial Statements and its Q1 2025 MD&A for a discussion of the uncertainties, risks and assumptions associated with these statements and other risks. Readers are urged to consider the uncertainties, risks, and assumptions carefully when evaluating forward-looking information and are cautioned not to place undue reliance on such information. We have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation and regulatory requirements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE ARGO CORPORATION
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2025/30/c4433.html
/CONTACT:
Media Contact: Christina Ra, Argo Corporation, christina@rideargo.com, (800) 575-7051
Copyright CNW Group 2025
(END) Dow Jones Newswires
TORONTO, May 30, 2025 /CNW/ - Argo Corporation (TSXV: ARGH), (OTCQX: ARGHF) ("Argo" or the "Company"), a leader in next-generation transit solutions, announced its financial results for the quarter ended March 31, 2025 ("Q1 2025"). All figures are in Canadian dollars unless otherwise noted.
Municipal Deployments
Argo has made significant progress in the commercialization of its Smart Routing(TM) technology. The Company's first municipal deployment in the town of Bradford West Gwillimbury launched in the second quarter of 2025, as previously announced by the Company. Argo also announced its landmark $10.9 million 12-month pilot with the City of Brampton in the second quarter of 2025, anticipated to launch later this year. While revenue from these agreements was not reflected in Q1 2025 results, the Company expects to begin recognizing related revenues in the second and third quarters of 2025. Argo continues to advance a robust pipeline of municipal opportunities, positioning the Company for continued growth.
Research & Development of Smart Routing(TM) Transit System
In Q1 2025, the Company continued its investment in research and development to enhance its proprietary Smart Routing(TM) hardware and AI-powered software ecosystem, including vertical integration hardware onboard its Argo X1 electric vehicles. This end-to-end platform combines real-time routing software, electric vehicles and full-service operations to deliver dynamic, on-demand transit services.
FoodsUp Inc.
The company held a 47.851% interest in FoodsUp Inc. ("FoodsUp") as of March 31, 2025. FoodsUp is one of Canada's leading restaurant supply platforms, with annual revenues of $108 million in fiscal 2024. As previously disclosed, the Company made significant progress towards the divestment of this ownership interest in Q1 2025:
-- Sale of Shares: The Company received approximately $2.5 million in
proceeds from the sale of an aggregate of 5,855 subordinate-voting shares
of FoodsUp Inc.
-- Option Agreements: The Company entered into two option agreements
(collectively, the "Option Agreements") granting the holders thereof the
irrevocable option to purchase up to a total of 45,932 subordinate-voting
shares of FoodsUp. If the transactions contemplated by the Option
Agreements are fully exercised, the Company has the potential to receive
gross proceeds of between $21.6 million and $30.2 million. The Company's
ability to complete the transactions provided for in the Option
Agreements remain subject to any required approvals, including final
approval of the TSX Venture Exchange and approval of the shareholders of
the Company.
In addition, in the second quarter of 2025, the Company announced that its board of directors declared a special stock dividend (the "Stock Dividend") intended to provide its legacy shareholders with their proportionate stake in the net proceeds realized upon the eventual sale by the Company of its ownership interest in FoodsUp. Pursuant to the Stock Dividend, all of the Company's common shareholders of record on August 13, 2025 (the "Record Date") will be entitled to receive, one Preferred Share, Series A of Argo for each common share of Argo held on the Record Date. The payment date for the Stock Dividend is August 20, 2025. Additional details regarding the Stock Dividend can be found in the Company's press release dated May 21, 2025.
For detailed information, please refer to Argo's condensed interim consolidated financial statements for the three months ended March 31, 2025, and 2024 ("Q1 2025 Financial Statements") and its management's discussion and analysis of financial condition and results of operations for the three months ended March 31, 2025, and 2024 (the "Q1 2025 MD&A"), filed on SEDAR+ at www.sedarplus.ca. The following table provides a summary of Argo's financial results for the three months ended March 31, 2025 and 2024:
For the three months ended March 31 2025 2024 REVENUE $512,172 $219,585 Cost of revenue $115,987 $12,956 General and administration 2,570,907 966,946 Operational support 663,431 239,207 Research and development 224,492 49,174 Sales and marketing 10,648 34,802 Provision for trade and other - - receivables Amortization & depreciation 18,490 34,746 Depreciation 25,989 7,584 Total operating expenses 3,629,944 1,345,415 OPERATING LOSS ($3,117,772) ($1,125,830) OTHER INCOME (EXPENSES) Foreign exchange gain/ (loss) (14,791) (40,069) Interest expenses (427,312) (228,616) Interest income - 897 Loss on termination (996,968) - Write-off of accounts payable settlements - 98,202 Fair value gain (loss) on investments 2,726,221 - Gain on sale of investment 105,864 - Share of loss of an associate - (1,083,495) Net income/ (loss) from continuing operations ($1,724,758) ($2,378,911) Discontinued OperationsNet gain/(loss) from discontinued operations, net of tax 497 (489,791) Gain from derecognition, net of tax - 1,341,770 NET GAIN (LOSS) ($1,724,261) ($1,526,932) Cumulative translation adjustment (342) 78,655 Cumulative translation adjustment for discontinued operations - (252,661) NET PROFIT (LOSS) AND COMPREHENSIVE PROFIT (LOSS) ($1,724,603) ($1,700,938) (Loss) Profit per share(Loss) income per share from continuing operations -- Basic and diluted ($0.01) ($0.02) Income (loss) per share from derecognition and discontinued operations - Basic and diluted $0.00 $0.01 Weighted average shares outstanding - Basic and diluted 138,683,002 132,944,615 All figures rounded to the nearest dollar. Prepared in accordance with IFRS.
About Argo
Argo delivers the world's first fully vertically integrated transit system, combining Argo X1 electric vehicles, Smart Routing(TM) technology, and comprehensive operational management in a single end-to-end solution. By integrating every aspect of the transit experience, Argo enables municipalities to augment traditional fixed-route services to dynamically optimized on-demand service while maintaining standard public transit pricing. The company launched Argo School in September 2024 and began its first municipal deployment in Bradford West Gwillimbury in early 2025. Learn more at www.rideargo.com.
Praveen Arichandran, CEO
Argo Corporation
(800) 575-7051
Forward-Looking Information
This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate," "estimate," and "intend," and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. The forward- looking information set out in this news release relates to future events or our future performance and includes, without limitation, statements concerning the recognition of revenue in future quarters, the future growth of the Company, the completion of the completion of the exercise of the options granted pursuant to the Option Agreements by the holders thereof, Argo's ability to obtain all necessary approvals in respect of the Option Agreements and the Stock Dividend, and Argo's intention with respect to the Stock Dividend. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, as described in more detail in the Company's securities filings available at www.sedarplus.ca. Actual events or results may differ materially from those projected in the forward-looking statements, and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law. See "Cautionary Note Regarding Forward-Looking Information", "Financial Risk Management Objectives And Policies" and "Other Business Risks and Uncertainties" in the Company's Q1 2025 Financial Statements and its Q1 2025 MD&A for a discussion of the uncertainties, risks and assumptions associated with these statements and other risks. Readers are urged to consider the uncertainties, risks, and assumptions carefully when evaluating forward-looking information and are cautioned not to place undue reliance on such information. We have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation and regulatory requirements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE ARGO CORPORATION
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2025/30/c4433.html
/CONTACT:
Media Contact: Christina Ra, Argo Corporation, christina@rideargo.com, (800) 575-7051
Copyright CNW Group 2025
(END) Dow Jones Newswires
May 30, 2025 16:56 ET (20:56 GMT)
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