Abaxx Technologies Inc. (NEO:ABXX)(OTCQX:ABXXF)
(“Abaxx” or the “Company”), a financial software and market
infrastructure company, majority shareholder of the
Abaxx
Commodity Exchange and Clearinghouse (“Abaxx Singapore”),
and producer of the
SmarterMarkets™ Podcast,
summarizes development activities over the past quarter and the
general progress of the Company’s business plans.
The Company plans to host an investor call and presentation on
Thursday, August 17th, with details outlined in this release.
Highlights:
Abaxx Exchange and Clearing Developments Highlights:
- Risk and Regulatory: Concluded
public consultation on Exchange and Clearing House rules; ongoing
engagement with MAS for ACH and RMO licensing.
- Commercial: Broad interactions with
market participants including significant meetings and interactions
at The 20th International Conference & Exhibition on Liquefied
Natural Gas (LNG2023), where Abaxx Singapore was the sole global
exchange and clearing group represented amongst over 400 LNG
Traders and 3,000 delegates; selected to present the Abaxx physical
futures white paper and suite of LNG benchmark contracts at the
upcoming global GasTech conference in Singapore.
- Systems and Operations: Hired a new
Chief Technology Officer with global exchange experience and
progressed integration of third-party clearing and exchange
independent software vendors (ISVs) into production.
- Exchange Product Development:
Advanced development of Nickel futures contract; efforts on carbon
and precious metals market solutions continue.
- Abaxx Console Apps and ID++
Protocol: Completed upgrade to ID++ V2 core protocol; prototyping
tools for carbon markets with improved privacy and accountability
(Abaxx Project Venice).
Abaxx Corporate Update Highlights:
- First Revenues from Base Carbon
Revenue Royalties: Abaxx Technologies achieved its first revenues
from a 2.5% royalty on Base Carbon sales, following the successful
issuance and sale of 1,116,221 Verified Carbon Units (VCUs) related
to a Vietnam Project's cookstove and water purifier components to
the project’s offtaker, Citigroup.
- Signing of Strategic Financing
Investor: Abaxx Singapore has executed a definitive investment
agreement with a global market infrastructure operator to make a
cash investment in Abaxx Singapore, subject to closing conditions,
as previously announced on August 14, 2023.
- U.S. Listing Application: Abaxx
pursing intralisting on Cboe Global Listings to expand capital
markets reach and engage global investors, subject to all
regulatory requirements, as previously announced on June 2,
2023.
Dear Shareholders,
Abaxx Technologies has made significant progress in its
strategic initiatives over the recent months. The Company's efforts
have been centered around technological advancements, regulatory
engagements, and expanding its market presence, all of which are
crucial in addressing global challenges, including the ongoing
energy transition and global supply chain investment cycle.
Your continued support and trust are greatly appreciated as
Abaxx pursues its outlined objectives.
Abaxx Exchange and Clearing Developments
Risk and Regulatory: Since our last update, the Company
concluded its public consultation on the rules and procedures of
the Exchange and Clearing House. Engagements with the Monetary
Authority of Singapore (“MAS”) maintained pace to close off any
remaining regulatory review and licensing requirement for the
Approved Clearing House (ACH), Approved Holding Company (AHC) and
Recognised Market Operator (RMO) licenses. These licensing
requirements are still subject to final regulatory approval.
Commercial: Continuing our broad interaction with relevant
market participants across all intended product verticals, the
Abaxx Commercial team met with over 20 energy-specific Chief Risk
Officers at the CCRO Summer Meeting in Boston and had significant
meetings and interactions amongst the 3,000 delegates and 400
Senior LNG traders attending the LNG2023 Conference in Vancouver in
July. Our engagements also included one-on-one meetings with
Futures Clearing firms involved in the upcoming launch of Abaxx
Exchange. We are preparing for a busy quarter including our second
annual reception during S&P’s APPEC event and our first
presentation at the global GasTech conference in Singapore which
will attract over 40,000 delegates. Chief Commercial Officer, Joe
Raia, and Abaxx Singapore President Dan McElduff will present
Abaxx’s thesis on the need for physically-settled LNG benchmarks —
chosen out of the over seven hundred abstracts submitted.
Systems and Operations: Abaxx Singapore is pleased to announce
the addition of a new Chief Technology Officer to its team in
anticipation of the upcoming launch. The Chief Technology Officer’s
extensive experience, obtained from a previous role at a globally
recognized exchange, will be an asset to the Company, where they
are expected to leverage their background to enhance Abaxx
Singapore's technological capabilities, drive innovation and
solidify the Company's position in the global market infrastructure
landscape.
The Company also progressed integration of third-party clearing
and exchange ISVs into production environments.
Exchange Product Development: Abaxx Singapore is
finalizing Stage 3 of its nickel-related product development —
focused on industry, risk, and regulatory considerations.
Contingent on submission and review by the Monetary Authority of
Singapore (MAS), Abaxx will seek to include its first battery
metals futures contract on the launch slate with LNG and carbon
contracts. Abaxx is also progressing work on additional carbon
market solutions as the market continues implementing structure
around requirements of Article 6 of the Paris Agreement (Article
6). Precious metals solutions remain in Stage 3 of development. The
Company’s efforts in precious metals are broader than futures
market development, and we look forward to sharing more details at
the appropriate time.
Abaxx Console Apps and ID++ Protocol: In Q2 2023, our Digital
Product and Engineering Teams completed the upgrade of ID++ to
“Version 2” (V2) of the core protocol, and commenced prototyping a
suite of tools designed to improve privacy and accountability for
participants in carbon markets and beyond. ID++ V2 has been
re-engineered from its foundational elements to be more resilient,
secure, and interoperable than its predecessor. With the completion
of the software development kit (SDK), tools built using ID++ V2
core are ready to address enterprise requirements in a complex,
networked and evolving landscape with increased utilization of AI
and distributed systems.
With the internal code name Project Venice, our team is pairing
existing console apps with newly developed tools to prototype an
application suite that connects qualified participants looking to
transact in carbon credits, under Article 6. We intend to design a
secure bridge that connects the enterprise cloud to distributed
networks and becomes the workflow operating standard for
institutions and governments looking to trade mitigation outcomes.
We expect pilot and formalized partnership details to be announced
in future updates, along with a newly branded commercial platform
of Abaxx console tools.
Abaxx Corporate Update
Abaxx Group Development Company Base Carbon Delivers First
Revenues to Abaxx Technologies: In Q2-2023, Abaxx achieved an
important corporate milestone by recognizing first revenues on the
Company’s 2.5% gross revenue royalty on Base Carbon sales, the
first group revenue from an organic development project within
Abaxx.
In May 2023, Base Carbon Capital Partners Corp. issued 1,020,903
carbon credits, also referred to as verified carbon units (“VCUs”),
associated with the cookstove component of a Vietnam Project, in
exchange for a contractually agreed payment of $5,870,192 from
project off-taker, Citigroup, which generated a royalty payment
obligation to Abaxx.
Canadian At-the-Market Equity Program: On April 26, 2023, the
Company announced it had established a Canadian at‐the‐market
equity offering program (“the ATM Program” or “ATM”) that allows
the Company to issue, at its discretion, common shares of the
Company having an aggregate offering price of up to $30,000,000 to
the public from time to time through the Agent.
Distributions of Common Shares pursuant to the ATM Program, if
any, will be made in accordance with the terms of an equity
distribution agreement dated April 26, 2023 (the “Equity
Distribution Agreement”) entered into by the Company and the Agent.
The ATM Program will be effective until the earlier of the issuance
and sale of all of the Common Shares issuable pursuant to the ATM
Program and December 4, 2023, unless terminated earlier in
accordance with the terms of the Equity Distribution Agreement.
Common Shares issued under the ATM Program will be issued from
treasury and distributed directly on the Cboe Canada Exchange, or
such other recognized marketplaces to the extent permitted, at
prevailing market prices at the time of sale, all in accordance
with the terms of the Equity Distribution Agreement. For more
information about the ATM Program, please refer to our April 26th
Press Release.
Q2 2023 Business Update Investor Call
The Company plans to host a quarterly business update investor
presentation, to provide a business update and respond to investor
questions.
The Company will hold the investor presentation via Zoom
Meetings on Thursday, August 17th at 10:00 a.m. Eastern Standard
Time Zone (EST). The Company invites current and prospective
shareholders to attend this quarterly business update and Q&A
session with the Abaxx executive team. Attendees may email their
questions in advance to ir@abaxx.tech.
Registration will be required to access the meeting. Following
the presentation, a recording of the session will be made available
on the Abaxx Investor Relations website at
investors.abaxx.tech.
PRESENTATION DETAILS
DATE Thursday, August 17th, 2023 TIME 10:00 AM Eastern Standard
Time (EST) LOCATION Zoom Meeting To receive the meeting link and
passcode, please register here.
QUESTIONS Please submit questions ahead of the presentation to:
ir@abaxx.tech
This announcement has been prepared for publication in
Canada and may not be released to U.S. wire services or distributed
in the United States. This announcement does not constitute an
offer to sell, or a solicitation of an offer to buy, securities in
the United States or any other jurisdiction. Any securities
described in this announcement have not been, and will not be,
registered under the US Securities Act of 1933, as amended (the “US
Securities Act”), or any state securities laws, and may not be
offered or sold in the United States except in transactions exempt
from, or not subject to, registration under the US Securities Act
and applicable US state securities laws.
About Abaxx Technologies
Abaxx is a development-stage financial software and market
infrastructure company creating proprietary technological
infrastructure for both global commodity exchanges and digital
marketplaces. The Company’s formative technology increases
transaction velocity, data security, and facilitates improved risk
management in the majority-owned Abaxx Commodity Exchange (Abaxx
Singapore Pte. Ltd.) - a commodity futures exchange seeking final
regulatory approvals as a Recognized Market Operator (“RMO”) and
Approved Clearing House (“ACH”) with the Monetary Authority of
Singapore (“MAS”). Abaxx is a founding shareholder in Base Carbon
Inc. and the creator and producer of the SmarterMarkets™
podcast.
For more information please
visit abaxx.tech, abaxx.exchange
and smartermarkets.media.
Media and investor inquiries:
Abaxx Technologies Inc.Investor Relations TeamTel: +1 246 271
0082E-mail: ir@abaxx.tech
Forward-Looking Statements
This News Release includes certain
"forward-looking information" (sometimes also referred to as
“forward-looking statements”) which does not consist of historical
facts. Forward-looking information includes estimates and
statements that describe Abaxx or the Company’s future plans,
objectives, or goals, including words to the effect that Abaxx
expects a stated condition or result to occur. Forward-looking
information may be identified by such terms as “seeking”,
“believes”, “anticipates”, “expects”, “estimates”, “may”, “could”,
“would”, “will”, or “plan”. Since forward-looking information is
based on assumptions and address future events and conditions, by
their very nature they involve inherent risks and uncertainties.
Although forward-looking information is based on information
currently available to Abaxx, Abaxx does not provide any assurance
that actual results will meet management’s expectations. Risks,
uncertainties, and other factors involved with forward-looking
information could cause actual events, results, performance,
prospects, and opportunities to differ materially from those
expressed or implied by such forward-looking information.
Forward-looking information in this news release includes but is
not limited to, Abaxx’s objectives, goals or future plans, the
Company’s expectations concerning listing its common shares on a
U.S. exchange, statements regarding anticipated financings and
expectations regarding the use of proceeds thereof, both current
and future, including the size, pricing, terms, and timing of
closing thereof, receipt of regulatory approvals and licenses,
including the RMO and ACH licenses, timing of the commencement of
operations, financial predictions, and estimates of market
conditions. Such factors include, among others: risks relating to
the global economic climate; dilution; the Company’s limited
operating history; future capital needs and uncertainty of
additional financing, including the Company’s ability to utilize
the Company’s at-the-market equity offering program (the “ATM
Program”) and the prices at which the Company may sell Common
Shares in the ATM Program, as well as capital market conditions in
general; the competitive nature of the industry; currency exchange
risks; the need for Abaxx to manage its planned growth and
expansion; the effects of product development and need for
continued technology change; protection of proprietary rights; the
effect of government regulation and compliance on Abaxx and the
industry; failure to obtain the requisite licenses from the
regulatory authorities in a timely fashion or at all, including the
RMO and ACH licenses; the ability to list the Company’s securities
on stock exchanges and receive the necessary approvals therefor in
a timely fashion or at all; network security risks; the ability of
Abaxx to maintain properly working systems; reliance on key
personnel; global economic and financial market deterioration
impeding access to capital or increasing the cost of capital; and
volatile securities markets impacting security pricing unrelated to
operating performance. In addition, particular factors which could
impact future results of the business of Abaxx include but are not
limited to: operations in foreign jurisdictions; protection of
intellectual property rights; contractual risk and third-party
risk; clearinghouse risk, malicious actor risks, third-party
software license risk, system failure risk, risk of technological
change and dependence on technical infrastructure; capital market
conditions and share dilution resulting from the ATM Program and
from other equity issuances; an inability of Abaxx Tech to raise
sufficient funds to complete funding responsibilities in respect of
the Abaxx Singapore strategic financing; and restriction on labor
and international travel and supply chains. Abaxx has also assumed
that no significant events occur outside of Abaxx’s normal course
of business.
Abaxx cautions that the foregoing list of
material factors is not exhaustive. In addition, although Abaxx has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, or intended. When
relying on Abaxx's forward-looking information to make decisions,
investors and others should carefully consider the foregoing
factors and other uncertainties and potential events. Abaxx has
assumed that the material factors referred to in the previous
paragraph will not cause such forward-looking information to differ
materially from actual results or events. However, the list of
these factors is not exhaustive and is subject to change and there
can be no assurance that such assumptions will reflect the actual
outcome of such items or factors. The forward-looking information
contained in this press release represents the expectations of
Abaxx as of the date of this press release and, accordingly, is
subject to change after such date. Readers should not place undue
importance on forward-looking information and should not rely upon
this information as of any other date. Abaxx does not undertake to
update this information at any particular time except as required
in accordance with applicable laws. CBOE Canada does not accept
responsibility for the adequacy or accuracy of this press
release.
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