ISX Financial EU Plc Announces Exit from National Stock Exchange of Australia

ISX Financial EU Plc's Exit from NSX: A Strategic Move

In a significant financial maneuver, ISX Financial EU Plc (ISXX) has successfully exited its holdings in the National Stock Exchange of Australia (NSX Ltd). This decision marks a transformative moment for the company as it shifts its focus toward core operations and expansion opportunities in the Northern Hemisphere. The transaction was recently finalized, yielding a noteworthy AU$5,556,608.72 in cleared electronic funds that correspond to ISXX's 27.595% stake in NSX.

Completion of the Equity Sale

The equity sale was executed through a scheme of arrangement, leading to CNSX Global Markets Inc. (CNSX Group) acquiring NSX Ltd entirely. With an all-cash offer price of AU$0.04 per fully paid ordinary share, the sale received overwhelming support from NSX shareholders, with 94.78% voting in favor of the transaction. This significant backing showcases the shareholders' confidence in the strategic direction that CNSX Group intends to take with NSX Ltd.

Beyond the equity consideration, ISXX has also secured additional funds amounting to AU$3,014,438.14, which includes accrued interest, restructuring fees, and establishment fees linked to the restructuring of two convertible notes issued to NSX Ltd. This restructuring has allowed ISX to replace previous convertible loan agreements with two new senior term loan facilities that extend the maturity dates beyond their original timelines.

New Loan Structures and Future Projections

One noteworthy change in this financial restructuring is the removal of all conversion features associated with the loans. The newly established loan agreements now carry a fixed annual interest rate of 18%. ISXX anticipates that these loan facilities will remain functional until their new extended maturities in August 2027 and January 2028, barring any early repayment by NSX. In the event of such early repayment, ISXX benefits from a make-whole clause, thereby ensuring full economic value is received, thus safeguarding its future earnings expectations.

With these revised terms, the company estimates an additional total principal and interest income close to AU$5.14 million over the lifetime of the new loan facilities. This revenue will be vital as it significantly contributes to ISX's financial stability and growth potential.

Remarks from Leadership

Expressing his thoughts on this pivotal move, Mr. Nikogiannis Karantzis, CEO of ISX Financial EU Plc, shared, "We wish NSX and its new owners at CNSX continued success in their endeavors in Australia. This divestment aligns with our goal of concentrating on growth in the Northern Hemisphere, allowing more room for strategic expansions and the pursuit of new licenses. The financial benefits from this transaction will greatly enhance our regulatory capital, paving the way for prospective acquisitions."

Historical Context

ISX Financial has held a beneficial ownership in the NSX, through its parent company NSX Ltd, since early 2020. During this time, the two organizations collaborated on innovative financial projects, including the launch of a blockchain-based securities clearing system— the Digital Exchange Subregister System (DESS). This system aims to modernize the clearing and settlement process while adhering to Australian Securities and Investments Commission (ASIC) regulations. The DESS is set to play a vital role in the future minting and burning of stablecoins, underscoring ISX's commitment to integrating advanced technologies in its operations.

As the company transitions away from its involvement with NSX, ISXX is poised to enhance its focus on delivering valuable services in the banking technology sector while exploring new markets.

For further updates on ISX Financial EU Plc and developments in their operations, interested parties can visit their Investor Relations page.