Successful Placement Raises Circa $3.5 Million
Participation in the raising has seen institutional and sophisticated investor support, in addition to director and existing shareholder participation, as identified by the Lead Manager, KG Capital Partners. iSignthis Ltd (ASX ISX) has committed to contribute $1 million of the amount subject to shareholder approval at an General Meeting to be held before the issue of the shares to iSignthis in accordance with ASX Listing Rule 10.11.3. Director allocations will also be subject to shareholder approval.
The Company intends to use the funds as follows;
- commence a search for, and appoint, a CEO to manage its growing exchange business, with the current Interim CEO John Karantzis having advised the board of his intention to step down from that role to allow him to focus on the continuing growth of the iSignthis business, and
- finalise its NASDAQ trading engine upgrade, and
- upgrade corporate IT systems associated with issuer management, and
- general working capital
The NSXL is now well positioned to continue funding of execution of its strategy with regards to its wholly owned Tier 1 market operator, the National Stock Exchange of Australia Limited ("NSXA").
The NSXA has transformed to become Australia's alternative securities market, and in particular for emerging, high tech and leading edge companies.
The transformation over the last year includes:
- increased number of Participant brokers, including anticipated online broker access by Q3 2021, and
- increased Nominated Advisor (NOMAD) and industry awareness of "direct entry", "fast track", "compliance" and "IPO" options for listing issuers;
- commencement of the process to extend the range of financial products traded on the market, and
- complete board membership overhaul;
- expansion of the two independent admissions/listings and compliance committees, and
- providing an automated platform and market for issuers, with our largest issuer now having a market capital in excess of A$500m;
- ongoing NASDAQ trading engine upgrade;
- the blockchain based ClearPay operated Distributed Exchange Subregister System (DESS) system built and operational, and in hot "standby" as an alternative to ASX's ageing CHESS system;
- acceptance of a wide range of new, emerging and conventional business models proposed by issuers, as being suitable for listing.
The NSXA has a number of IPO's approved and scheduled to list this year, with interest and applications for new listings increasing.
Commenting on the successful placement, Mr John Karantzis said:
"The Company is delighted with the support from existing and new shareholders. The result ensures that the Company will be able to continue with its strategy and business initiatives. I wish to thank Justin Klintberg and Tom Gunnerson of KG Capital Partners for their role in the capital raising."
The placement is within the 15% limit imposed by ASX Listing rule 7.1 of 38,595,889 shares and amounts to 25,400,000 fully paid ordinary shares to be placed in total with 17,857,143 shares or 70% of the offer allocated to unrelated parties.
The NSX expects the trading halt in its securities to be lifted as at the opening of the market on Wednesday 2 June 2021.
About NSX Ltd
NSX Ltd (ASX:NSX) via its wholly owned subsidiary National Stock Exchange of Australia Limited (NSXA) operates the Tier 1 Licensed stock exchange facility for the listing of equity securities, corporate debt and investment scheme units. The company is also involved in trading and settlement activities.