This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated April 26, 2023 to its short form base shelf prospectus dated November 4, 2021
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES /
TORONTO, Aug. 17, 2023 (GLOBE NEWSWIRE) -- Abaxx Technologies Inc. , (NEO:ABXX)(OTCQX:ABXXF) (“Abaxx” or the “Company”), a financial software and market infrastructure company, majority shareholder of the Abaxx Commodity Exchange and Clearinghouse (“ Abaxx Singapore ”), and producer of the SmarterMarkets™ Podcast , announces that Abaxx Singapore Pte. Ltd.’s subsidiary, Abaxx Exchange Pte. Ltd., has submitted a Notification of Impending Listing of Futures Contracts to the Monetary Authority of Singapore (MAS).
- Abaxx Exchange Pte. Ltd submitted innovative nickel sulphate futures contract specifications, which are subject to regulatory review and final approval.
- The initial Nickel Sulphate futures contract will include a new approach to the legacy warehouse structure of current base metals contracts.
- Abaxx developed the innovative futures product in close consultation with major global mining and metals trading companies, automotive and electric vehicle battery manufacturers, commodity market makers and financial institution market participants.
On August 17th, 2023 Abaxx Exchange Pte. Ltd. submitted a Notification of Impending Listing of Futures Contracts to the Monetary Authority of Singapore (MAS). The futures contract is designed to address the price discovery and risk management needs of battery metals-market participants trading nickel sulphate in addition to developing an innovative approach required for the delivery of the underlying nickel sulphate product. The submission is subject to regulatory review and an approval process required for all new products.
The energy transition to electrification requires the use of nickel sulphate to produce the requisite lithium-ion batteries. Global demand for nickel sulphate is projected to grow at a rapid 22% compound annual growth rate from 2020 to 2030 (Roskill 2020). Supplying the nickel sulphate necessary to meet this demand is expected to require high levels of investment, thus creating a unique opportunity for a well-functioning futures market, critical to discovering and hedging the price risk associated with these investments and unlocking the capital required.
The primary historical use of nickel has been in the production of stainless steel. The large and growing demand for nickel sulphate for batteries has led nickel producers to find other less expensive ways to create nickel sulphate than through the use of the traditional trading in warehoused refined nickel metal on existing exchanges. This supply chain transformation has created a growing disconnect between the forms of nickel being produced and traded in the physical market and the form being traded in legacy contracts, which Abaxx hopes to bridge with its innovative technologies.
Abaxx’s nickel sulphate futures contract is the result of collaboration with 21 firms, including a broad spectrum of industry market participants. Over the past 12 months, the Abaxx commercial team has been engaged in a series of comprehensive bilateral and group discussions about what would best serve the market related to the construction of battery units required for electric vehicle (EV) production. Our work involved two major global auto manufacturers, two global mining companies, six merchant trading firms, two EV battery manufacturers, three nickel sulphate producers and four bank/broker trading firms.
The launch of this first-of-its-kind futures contract is subject to review by the Monetary Authority of Singapore (MAS) as well as the final draw down of our Recognized Market Operator (RMO) and Approved Clearing House (ACH) licenses. The additional contract submission will not delay the orderly process of satisfying the final conditions related to the Registered Market Operator and Approved Clearing House licenses.
This announcement has been prepared for publication in Canada and may not be released to U.S. wire services or distributed in the United States.
About Abaxx Technologies
Abaxx is a development-stage financial software and market infrastructure company creating proprietary technological infrastructure for both global commodity exchanges and digital marketplaces. The company’s formative technology increases transaction velocity, data security, and facilitates improved risk management in the majority-owned Abaxx Commodity Exchange (Abaxx Singapore Pte. Ltd.) - a commodity futures exchange seeking final regulatory approvals as a Recognized Market Operator (“RMO”) and Approved Clearing House (“ACH”) with the Monetary Authority of Singapore (“MAS”). Abaxx is a founding shareholder in Base Carbon Inc. and the creator and producer of the SmarterMarkets™ podcast.
For more information about this press release, please contact:
Steve Fray, CFO
Media and investor inquiries:
Abaxx Technologies Inc.
Investor Relations Team
Tel: +1 246 271 0082
This News Release includes certain "forward-looking information" (sometimes also referred to as “forward- looking statements”) which does not consist of historical facts. Forward-looking information includes estimates and statements that describe Abaxx or the Company’s future plans, objectives, or goals, including words to the effect that Abaxx expects a stated condition or result to occur. Forward-looking information may be identified by such terms as “seeking”, “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking information is based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although forward-looking information is based on information currently available to Abaxx, Abaxx does not provide any assurance that actual results will meet management’s expectations. Risks, uncertainties, 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 in this news release includes but is not limited to, Abaxx’s objectives, goals or future plans, the Company’s expectations concerning listing its common shares on a U.S. exchange, the Company’s predictions for commodities supply and demand, the Company’s anticipated listing of futures contracts, the Company’s timing on operating futures exchanges, statements regarding status of regulatory approvals, statements regarding anticipated financings and expectations regarding the use of proceeds thereof, both current and future, including the size, pricing, terms, and timing of closing thereof, receipt of regulatory approvals and licenses, including the RMO and ACH licenses, timing of the commencement of operations, financial predictions, and estimates of market conditions. Such factors include, among others: risks relating to the global economic climate; dilution; the Company’s limited operating history; future capital needs and uncertainty of additional financing, including the Company’s ability to utilize the Company’s at- the-market equity offering program (the “ATM Program”) and the prices at which the Company may sell Common Shares in the ATM Program, as well as capital market conditions in general; 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; failure to obtain the requisite licenses from the regulatory authorities in a timely fashion or at all, including the RMO and ACH licenses; failure to operate a futures market in a timely fashion or a tall; changes in demand for Nickel and other metals; the ability to list the Company’s securities on stock exchanges and receive the necessary approvals therefore 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 and third-party risk; clearinghouse risk, malicious actor risks, third-party software license risk, system failure risk, risk of technological change and dependence on technical infrastructure; capital market conditions and share dilution resulting from the ATM Program and from other equity issuances; an inability of Abaxx Tech to raise sufficient funds to complete funding responsibilities in respect of the Abaxx Singapore strategic financing; and 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 Abaxx's forward-looking 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 paragraph will not cause such forward-looking 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 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. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date.
Abaxx does not undertake to update this information at any particular time except as required in accordance with applicable laws. CBOE Canada does not accept responsibility for the adequacy or accuracy of this press release.