NEW YORK--(BUSINESS WIRE)--The OLB Group, Inc. (NASDAQ: OLB), a diversified fintech merchant services provider and Bitcoin mining enterprise, today announced it has entered into a definitive agreement to acquire a portfolio of cannabidiol (CBD) merchants that will utilize the company’s SecurePay Payment Gateway to process payments. The acquired merchant portfolio has demonstrated a historical annual transaction run rate where it is anticipated to achieve an annual transaction volume of approximately $400 million in 2022, providing OLB with a significant foothold in the nearly $3 billion global CBD market while adding an accomplished and experienced sales channel to the OLB team. The OLB Group anticipates, based on the historical performance of the group of merchants, an additional $20 million in annual revenue and $5 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the company's payment processing business. Terms of the transaction can be found in the Company’s SEC filing https://www.sec.gov/ix?doc=/Archives/edgar/data/0001314196/000121390021062606/ea151441-8k_theolbgroup.htm.
“OLB is very pleased to have successfully closed this transaction resulting in this substantial addition to our payment processing business in a market sector that has been growing rapidly over the past several years. This portfolio acquisition of successful merchants in a market that is forecasted to continue its very healthy growth rate in both profitability and revenue provides OLB with a new growth engine,” said Ronny Yakov, Chief Executive Officer of The OLB Group. "The revenue contribution to our top line is anticipated to represent an increase of revenue of approximately 200% percent in 2022 when compared to 2020 revenue."
According to a recent market analysis by Grandview Research, the flourishing CBD market was valued at approximately $2.8B in 2020 and is projected to increase at an annual rate of 21.2% through 2028. This strategic acquisition positions OLB to capitalize on the projected growth of the CBD market, enabling further penetration into one of the fastest growing sectors in the United States. By providing the merchant portfolio with the proprietary and customizable “SecurePay” system, OLB will be able to address many of the payment concerns relating to the increase in activity in the CBD sector.
SecurePay provides an integrated support platform for traditional card-based payments, major digital wallets including Apple Pay® and Google Pay®, PayPal, and cryptocurrency wallets. The cloud-based platform also includes integrations with multiple back-office systems including QuickBooks and other business software applications.
For merchants searching for a comprehensive solution to simplify business processes and payment acceptance at the point of sale (PoS), OLB’s OmniSoft Business Management Platform offers merchants extended services including PoS terminals, warehouse, inventory, and logistics support, accounting and payroll, and customer relationship management. Merchants interested in implementing omnicommerce services can set up a SecurePay or OmniSoft account at https://cardaccept.com/#contact.
Future OLB Press Releases and Updates
Interested investors or shareholders can be notified of future Press Releases and Industry Updates by e-mailing investorrelations@OLB.com.
About The OLB Group, Inc.
The OLB Group, Inc. is a diversified Fintech eCommerce merchant services provider and Bitcoin crypto mining enterprise. The Company's eCommerce platform delivers cloud-based merchant services for a comprehensive digital commerce solution to over 9,500 merchants in all 50 states. DMint, a wholly owned subsidiary of OLB Group, is engaged in the mining of Bitcoin utilizing sustainable natural gas with an initial deployment of efficient 1,000 ASIC-based S19j Pro 96T mining computers projected by end of 2021. For more information about solutions, services, or to find a reseller, please visit www.olb.com. Investor information is available at www.olb.com/investors-data.
Safe Harbor Statement
All statements from The OLB Group, Inc. in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements concerning the impact of COVID-19 on our operations and financial condition, our ability to enter into a definitive agreement and consummate the proposed acquisition of the merchants, the continuing growth of the CBD sector generally, the continued sales and revenues of the merchants that are being acquired, our ability to generate revenues and profits from the new merchants, that the agreement, if entered into, will result in additional business for our Omni Commerce and SecurePay applications. While the Company’s management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include statements regarding the expected revenue and income for operations to be generated by The OLB Group, Inc. For other factors that may cause our actual results to differ from those that are expected, see the information under the caption “Risk Factors” in the Company’s most recent Form 10-K and 10-Q filings, and amendments thereto, as well as other public filings with the SEC since such date. The Company operates in a rapidly changing and competitive environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. The Company disclaims any intention to, and undertakes no obligation to, update or revise any forward-looking statement.