ISX Financial EU's Strategic Exit from the National Stock Exchange of Australia

ISX Financial EU Exits National Stock Exchange of Australia

ISX Financial EU Plc, also known as ISXX, has officially announced its exit from the National Stock Exchange of Australia (NSX). The strategic divestment includes receiving AU$5,556,608.72, representing the equity related to their 27.595% shareholding in NSX Ltd. The sale was finalized through a scheme of arrangement, allowing CNSX Global Markets Inc., the parent company of the Canadian Securities Exchange, to take over them fully. The acquisition was well-received, with approximately 94.78% of NSX shareholders casting their votes in favor of the transaction, reflecting strong support for this transformative shift.

This equity sale not only marks a significant milestone for ISX Financial but also exemplifies the ongoing trend of consolidation within the stock exchange sector. In addition to the cash from the equity sale, ISXX is also set to receive a total of AU$3,014,438.14 in accrued interest and restructuring fees associated with the loan restructuring of two convertible notes they previously extended to NSX Ltd.

The completed transaction follows the satisfaction of all necessary conditions, including final approvals from the Australian Securities and Investments Commission (ASIC) and local courts, which have facilitated a smooth transition for all parties involved.

Under the terms of this arrangement, ISXX no longer holds any equity interest in NSX Ltd, marking the end of their significant operational role within the Australian market. In response to this change, ISXX’s existing convertible loan agreements with NSX have been successfully restructured into two new senior term loans, thereby extending repayment terms and ensuring fixed interest rates of 18% annually. This strategic financial restructuring is intended to bolster ISX's overall financial foundation, providing an anticipated total of AU$5.14 million in principal and interest payments over time, assuming no early repayment occurs.

Mr. Nikogiannis Karantzis, CEO of ISX Financial, expressed optimism regarding the transaction, stating, "On behalf of ISXX, we wish the NSX and its new owners, the CNSX, all the best in their new Australian venture." He further emphasized that this divestment is a critical move that allows ISX to realign its focus towards core operations and expedite growth initiatives within northern markets.

ISX Financial’s exit from the NSX is strategic not just in terms of immediate financial gains but also serves to augment its balance sheet by approximately AU$13.8 million after final calculations. This financial influx aims to support ongoing expansion efforts into new markets and secure licenses for upcoming services, while additionally providing a funding base for future acquisitions.

Moreover, ISXX has been a prominent player in the Australian financial market since early 2020 through its stake in NSX Ltd. ISXX and its subsidiary Clearpay were integral in launching a blockchain-based securities clearing system in compliance with ASIC regulations. Referenced as the Digital Exchange Subregister System (DESS), it is designed to modernize clearing and settlement processes in the financial sector and will explore applications in managing stablecoins related to ISXX’s fiat processing systems.

While ISXX concludes its operations with NSX, it remains a proactive contributor to the platform through its IT service provision for DESS, underscoring a commitment to innovation and progress in financial technology. As the company pivots toward its core strengths and explores new frontiers of growth, key stakeholders and investors will be keenly watching how this strategic exit plays out in the long-term.

With its head office located in Nicosia, ISX Financial EU Plc operates as a leading banktech firm authorized by the Central Bank of Cyprus and regulated in the UK by the Financial Conduct Authority. Continuous updates on corporate activities can be found on their Investor Relations page.