ISX Financial EU Plc Exits Australian National Stock Exchange

In a recent development, ISX Financial EU Plc, known by its ticker symbol ISXX, has declared its withdrawal from the National Stock Exchange of Australia (NSX Ltd). The company has successfully received a substantial sum of AU$5,556,608.72 as cleared electronic funds corresponding to its 27.595% equity stake in NSX Ltd. The final settlement took place at the end of last week, marking a significant pivot in ISX's operational focus.

Amid this transition, ISXX not only acquired funds for its stake but also secured additional interests and restructuring fees totaling AU$3,014,438.14. These figures relate to the restructuring of loans associated with two convertible bonds granted to NSX Ltd. This strategic move coincides with a completely arranged buyout plan led by CNSX Global Markets Inc., the parent company of the Canadian Securities Exchange (CSE). The comprehensive offer included a cash consideration of AU$0.04 per fully paid ordinary share held by NSX Ltd. shareholders. The shareholders demonstrated overwhelming support for the buyout, with an endorsement rate of 94.78% in favor of the transaction.

As a result of this arrangement, ISXX no longer holds any equities within NSX Ltd. Furthermore, existing agreements regarding previous convertible loans extended to NSX are now replaced with two newly structured senior term loans, each extended by an additional year from their original maturity dates. In this revised agreement, all conversion options have been removed, and the loans will incur a fixed annual interest rate of 18%.

ISX anticipates that these two loans will remain active until their respective extended maturity dates, set for August 2027 and January 2028, barring any early repayment options that NSX might exercise under the new terms. Importantly, if NSX opts for early repayment, ISXX is guaranteed full repayment of economic value equivalent to the interests accrued up to the initial due dates, thereby shielding its profit profile.

Based on the newly established conditions and in the absence of any early repayment, ISX expects to collect an additional total of AU$5.14 million over the lifetime of the two new loans, including both capital and interest.

Nikogiannis Karantzis, the CEO of ISX Financial EU Plc, expressed optimism about NSX and its new owner, CNSX Group, stating, "On behalf of ISXX, we wish NSX and its new owner every success in this new venture in Australia."

By divesting its interest in NSX, ISX can now channel its resources towards core operations and expansion plans in the Northern Hemisphere. The disengagement and loan restructuring is expected to ultimately yield a total of AU$13.8 million to ISX's balance sheet when finalized, consequently providing additional regulatory capital that could facilitate market expansion and the acquisition of new licenses.

ISX Financial EU Plc, which operates as a 100% subsidiary of NSX Ltd., has played a notable role in the Australian market since acquiring NSX operations at the beginning of 2020. The National Stock Exchange of Australia is a Level 1 market operator licensed and regulated by the Australian Securities and Investments Commission (ASIC). Notably, Nikogiannis Karantzis served as CEO of NSX Ltd. from March 2020 until March 2022.

In 2021, NSX Ltd. partnered with ISXX's subsidiary Clearpay to implement a blockchain-based settlement system aligned with ASIC requirements. This system, known as the Digital Exchange Subregister System (DESS), aims to enhance settlement and clearing processes by creating a new Delivery versus Payment (DvP) platform, intended to eventually replace conventional systems. Moreover, the DESS is anticipated to have future applications in the issuance and burning of stable cryptocurrencies, which ISXX plans to explore in light of its existing fiat currency processing systems. ISX continues to provide IT support to NSX to sustain the DESS.

About ISX Financial EU Plc

Based in Nicosia, ISX Financial EU Plc is a premier banking technology firm that is licensed as an electronic money institution in the EEA by the Central Bank of Cyprus and regulated by the Financial Conduct Authority in the UK. For more updates and communications related to the company, please visit their investor relations page at https://www.isx.financial/investors.