ISX Financial EU Plc Completes Exit from Australia's NSX Ltd with Significant Funds

ISX Financial EU Plc Completes Exit from Australia's NSX Ltd

In a significant development for the financial technology sector, ISX Financial EU Plc has announced the successful liquidation of its shares in the National Stock Exchange of Australia (NSX Ltd). The transaction involved receiving 5,556,608.72 Australian dollars in cleared electronic funds related to ISXX's 27.595% stake in NSX Ltd. This marks a notable exit strategy for ISX, allowing the company to refocus its efforts on core operations and growth in northern markets.

The completion of this transaction, which took place towards the end of last week, was facilitated by a share purchase agreement for the acquisition of 100% of NSX Ltd by CNSX Global Markets Inc., the parent organization of the Canadian Securities Exchange (CSE). This strategic move has resulted in a cash consideration of AUD 0.04 per fully paid ordinary share.

Key to the execution of this sale was the overwhelming support from NSX shareholders, with 94.78% voting in favor of the agreement. Following the sale, ISXX no longer holds equity interests in NSX Ltd, paving the way for a new chapter in its operational strategy.

In addition to the cash compensation described above, ISXX has also received agreed-upon interest payments and restructuring fees totaling 3,014,438.14 AUD linked to the restructuring of convertible debt associated with two issued bonds to NSX Ltd. This financial restructuring underscores ISXX's commitment to optimizing its capital structure post-exit.

Furthermore, the previous convertible loan agreements between ISXX and NSX have been replaced by two new senior credit facilities, each extended by an additional year from their initial due dates. These new arrangements eliminate conversion features, resulting in a fixed annual interest rate of 18%. ISXX anticipates that these credit lines will continue until their extended maturities in August 2027 and January 2028, unless NSX opts for early repayment under the updated contractual terms.

Should an early repayment occur, ISXX stands to benefit from a total compensation clause that secures the discounted economic value of the interest through the original maturity dates, thus safeguarding profit margins. Based on these updated conditions, assuming no early buyback, ISXX expects to garner approximately 5.14 million AUD in additional capital and interest during the term of the new credit lines.

Nikogiannis Karantzis, the CEO of ISX Financial EU Plc, expressed his best wishes to NSX and its new parent CNSX for their future endeavors in the Australian market. He emphasized that the divestiture from NSX allows ISXX to concentrate on enhancing its main operations and expanding in the Northern Hemisphere. According to Karantzis, the divestment and loan restructuring are projected to add 13.8 million AUD to ISXX's balance sheet upon conclusion, enabling regulatory capital relief for expansion into new markets, licensing for future services, and financing for potential acquisitions.

The National Stock Exchange of Australia operates as a licensed level 1 market operator under the Australian Securities and Investments Commission (ASIC) and has been under ISXX's effective beneficial ownership since early 2020 through its parent company, NSX Ltd. Karantzis was notably the CEO of NSX Ltd from March 2020 until March 2022.

In collaboration with Clearpay, a subsidiary of ISXX, NSX Ltd launched a blockchain-based settlement system in 2021 meeting ASIC's compliance requirements. This innovative system, named the Digital Exchange Sub-register System (DESS), aims to modernize the clearing and settlement processes, eventually replacing conventional systems with a new Delivery versus Payment (DvP) model. DESS is also projected to have upcoming applications in the minting and burning of stablecoins, which ISXX plans to explore in conjunction with its fiat currency processing systems. ISXX continues to provide IT support to NSX in relation to DESS operations.

About ISX Financial EU Plc

Based in Nicosia, ISX Financial EU Plc (ISXX, LEI 213800NGHVYL5PFZI692) stands as a leading financial technology firm in the EEA, authorized as an Electronic Money Institution by the Central Bank of Cyprus and regulated in the UK by the Financial Conduct Authority. For the latest announcements and communications from the company, please visit our Investor Relations page at https://www.isx.financial/investors.