TORONTO, Nov. 15, 2024 (GLOBE NEWSWIRE) -- Abaxx Technologies Inc. (CBOE CA:ABXX)(OTCQX:ABXXF) (“Abaxx” or the “Company”), a financial software and market infrastructure company, majority shareholder of Abaxx Singapore Pte Ltd. (“Abaxx Singapore”), the owner of Abaxx Commodity Exchange and Clearinghouse (individually, “Abaxx Exchange” and “Abaxx Clearing”), and producer of the SmarterMarkets™ Podcast, provides an update on operational milestones and the continued execution of the Company’s business strategy in the third quarter following the launch of Abaxx Commodity Exchange and Clearinghouse on June 28, 2024.
The Company plans to host an investor call and presentation on Monday, November 18th, with details outlined in this release.
Abaxx Corporate Milestone Highlights
Commercial: Onboarded three full clearing members and two additional clearing firms, including our first global bank FCM, with one additional clearing member in progress and expected to be onboarded by year end. Two more bank futures commission merchants (FCMs) are in progress and three additional clearing firms are in discussion for potential onboarding in 2025. Onboarded six merchant trading firms with sixteen more in progress for block trades and central limit order book trading, and onboarded nine financial trading and market making firms with ten more in progress. Completed the onboarding of ten introducing brokers with five more in progress.
Exchange Product Development: Listed LNG and carbon contracts enhanced to align with evolving standards. Imminent regulatory submittals planned for lithium and nickel products. Precious metals solutions rollout plan activated. Development efforts in sustainable base metal and weather derivatives initiated.
Risk and Regulatory: Efforts underway to expand participation access and connectivity to Abaxx Exchange and Clearinghouse in key jurisdictions beyond Singapore, deepening integration with the global network of clearing houses to promote best practices and standards.
Systems and Operations: Initiated second phase system expansion and updates including capabilities for options, multi-currency pricing and settlement, and additional Abaxx ID++ V2 integrations in Abaxx Exchange and Abaxx Clearing software for Abaxx Messenger and ID++ digital signature operations to be used in digital titles.
Abaxx console suite applications and ID++ Protocol:
Public launch of Abaxx Verifier+ on IOS and Android
Smarter Markets Coffeehouse (“SMC”) launch with ID++ membership credential integrations and passwordless login
Production deployment of Abaxx Messenger phase one
Strategic Financing: Progressed Abaxx Singapore strategic financing discussions post onboarding of key merchant commodity traders and a bank clearing firm in late October. As disclosed on October 21st, 2024, announced an Abaxx Technologies strategic placement of 215,000 common shares of the Company at a price of CAD$13.00 per common share for aggregate gross proceeds of C$2,795,000 on a private placement basis, expected to close imminently.
Last quarter, following the launch of Abaxx Exchange and Clearinghouse at the end of Q2 2024, Abaxx focused on advancing commercial connectivity across trading firms, clearing firms, and broker networks. Significant progress was made in onboarding and training market participants, furthering our mission to deliver reliable price discovery and risk management tools for today’s commodity market participants. In addition, the team advanced the development of additional futures product solutions for battery and precious metals markets, and launched implementations of core software protocols and applications for commercial use in Abaxx Exchange and Abaxx Clearing, SMC, and beyond.
The following sections provide additional details on these activities.
Abaxx Exchange and Abaxx Clearing Developments
Risk and Regulatory: To expand its reach for participant access and connectivity to Abaxx Exchange and Clearinghouse, Abaxx is evaluating commercial demand for equivalence status in several key jurisdictions. Preparations are underway for an application to the Commodity Futures Trading Commission (CFTC) to obtain a Foreign Board of Trade (FBOT) registration to permit direct market access for US trading participants.
Abaxx Clearing is joining the CCP Global Association, composed of global clearing houses, to collaborate in the promotion of best practices and standards in clearing processes.
Commercial: The Abaxx Commercial team has reached several key milestones in expanding commercial connectivity for Abaxx Exchange and Clearinghouse. To date, thirty-one central counterparty (“CCP”) position accounts (excluding default) have been opened, along with a total of three direct clearing members — which include StoneX, KGI Securities and ADM Investor Services Singapore — and two additional clearing firms have onboarded, which include Marex Spectron International Ltd. and Mizuho Americas Ltd. Additionally, Abaxx has successfully onboarded 15 trading firms, demonstrating robust growth in institutional participation. Looking forward, Abaxx's product pipeline is expanding, with plans to launch two new battery metals and precious metals markets by late 2024 or early 2025, subject to meeting all regulatory requirements.
The Abaxx Commercial team is pleased to share that Abaxx Exchange and Clearinghouse is one of ten groups being nominated by the Futures Industry Association (“FIA”) for its 2024 Innovator Pavilion. We were selected by an independent committee of industry experts based on the innovativeness of our products and services and their relevance to firms active in the global futures, options and swaps market. FIA will announce the winner at its conference being held in Chicago from November 18th to the 20th.
We are also shortlisted for the “World LNG Award for Outstanding Contribution 2024” at the upcoming World LNG Summit. The nomination is for successfully launching the world's first deliverable LNG futures benchmarks that are now bringing better price transparency and risk management tools to this important market.
Systems and Operations: Abaxx launched Abaxx Exchange and Abaxx Clearing’s systems on June 28, 2024 which have operated successfully, as scheduled, to date. Abaxx tech and operations teams engaged actively to onboard market participants, including connecting Mizuho Americas Ltd. and ADM Investor Services Singapore clearing firms. New work on allowing multiple currencies for collateral and settlement is in progress to offer more services to our market participants along with the next phase of systems improvements and upgrades.
Exchange Product Development: Since launch, Abaxx has continued to align its contract terms with industry requirements. The LNG Northwest Europe contract was amended to integrate EU Methane Regulation requirements. The Abaxx CORSIA Phase 1 contract was amended to accommodate additional registries. Abaxx is completing Stage 3 (Industry Review/Risk/Regulatory) of development for a suite of lithium carbonate futures that will complement the nickel sulphate futures contracts that are currently pending a determination of a Q4 2024 launch date. Development work on initial precious metals products remains a priority. Precious metals solutions which involve a novel approach to spot market and futures market infrastructure have progressed within Stage 3 (Industry Review/Risk/Regulatory), with a current targeted launch date of Q1 2025, subject to meeting all regulatory requirements.
Additional Corporate Updates
Abaxx Console Apps:
Verifier+ public release: Released on October 8, 2024 to the Apple App Store and Google Play Store, Verifier+ is a next generation identity and access management and digital identity management application for the Abaxx ecosystem and beyond. Verifier+ allows users to create and manage their ID++ digital identity and platform credentials (using decentralized identities, or “DIDs”, compatible with the Decentralized Identity Foundation standards; and WC3-standard compatible Verifiable Credentials). Released in conjunction with SMC, the Verifier+ app allows SMC members to custody their member credentials and securely log into the SMC digital experience from a mobile device without use of a password.
Key features and milestones:
Released Verifier+ to the public via the App Store and Play Store
Added Additional self-management features to make it easier for customers to organize their Verifier accounts and credentials
Enhanced device change security with new account recovery passphrase feature
Improved security and portability of DIDs with new backend processes and service architecture
Upgraded ability to disable identities stored by Verifier+ when traveling through sensitive areas
Smarter Markets Coffeehouse live and onboarding contributors:
Key features and milestones:
Released a new, branded digital media and community experience with custom Verifier+ integration and SmarterMarkets™ membership credentials
Implemented Abaxx Issuer within the back-end schema and issuance infrastructure for account administrators to issue and manage member credentials using WC3-aligned Verifiable Credentials
Abaxx Messenger:
Key features and milestones:
Integrated Verifier+
Implemented full end-to-end encryption for messaging
Delivered mobile web UX
Launched preview environment for prospective integration partners to collaborate on feature development and platform integration
Q3 2024 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 Monday, November 18th, 2024 at 4:00 p.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: Monday, November 18, 2024 TIME: 4:00 p.m. 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
Abaxx Q3 Business Update Call
About Abaxx Technologies
Abaxx is building Smarter Markets — markets empowered by better financial technology and market infrastructure to address our biggest challenges, including the energy transition. In addition to developing and deploying financial technologies that make communication, trade, and transactions easier and more secure, Abaxx is an indirect majority-owner of Abaxx Exchange and Abaxx Clearing, subsidiaries recognized by MAS as an RMO and ACH, respectively.
Abaxx Exchange and Abaxx Clearing are a Singapore-based commodity futures exchange and clearinghouse, introducing centrally cleared, physically deliverable commodities futures and derivatives to provide better price discovery and risk management tools for the commodities critical to our transition to a lower-carbon economy.
For more information about this press release, please contact: Steve Fray, CFO Tel: +1 647 490 1590
Media and investor inquiries:
Abaxx Technologies Inc. Investor Relations Team Tel: +1 647 490 1590 E-mail: ir@abaxx.tech
Cautionary Statement Regarding Forward-Looking Information
This press release includes certain “forward-looking statements” which do not consist of historical facts. Forward-looking statements include estimates and statements that describe Abaxx’s future plans, objectives, or goals, including words to the effect that Abaxx expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “seeking”, “should”, “intend”, “predict”, “potential”, “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, “continue”, “plan” or the negative of these terms and similar expressions. Since forward-looking statements are based on current expectations and assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Abaxx, Abaxx does not provide any assurance that actual results will meet respective management expectations. Risks, uncertainties, assumptions, 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 related to Abaxx in this press release includes, but is not limited to: Abaxx’s objectives, goals or future plans; operational milestones and the continued execution of the Company’s business strategy in the third quarter following the launch of Abaxx Exchange and Clearinghouse and the benefits thereof; the timing and successful onboarding of brokers and clearing members; the development and implementation of Abaxx’s infrastructure, products and services offerings; the timing of launch of new products; the proposed expansion and integration of Abaxx’s network with the global network of clearing houses; the development and launch of new software and applications; the completion and timing of closing of proposed financings; applications for FBOT registration; and, admission to the CCP Global Association. Such factors impacting forward-looking information include, among others: risks relating to the global economic climate; dilution; Abaxx’s limited operating history; future capital needs and uncertainty of additional financing; 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; acquiring and maintaining regulatory approvals for Abaxx’s products and operations; the ability to list Abaxx’s securities on stock exchanges 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, third-party risk; clearinghouse risk, malicious actor risks, third-party software license risk, system failure risk, risk of technological change; dependence of technical infrastructure; and changes in the price of commodities, capital market conditions, 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 forward-looking statements and 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 paragraphs will not cause such forward-looking statements and 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 statements and 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. Abaxx undertakes no obligation to update or revise any forward-looking statements and information, whether as a result of new information, future events or otherwise, except as required by law. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements and information. Cboe Canada does not accept responsibility for the adequacy or accuracy of this press release.
