TORONTO, Oct. 06, 2021 (GLOBE NEWSWIRE) -- Abaxx Technologies Inc., (NEO:ABXX)(OTCQX:ABXXF) (“Abaxx” or the “Company”), a financial software company, majority shareholder of Abaxx Singapore Pte. Ltd., the Abaxx Commodity Exchange (ACX), and producer of the SmarterMarkets™ Podcast, is updating shareholders on the progress of the Company’s business plan and anticipated milestone road map for Q4 - 2021 through Q1 2022.
Highlights:
- Central Clearing House Approval In Principle granted August 25, 2021
- Pilot testing of technology applications including GHG protocol tradeflow commencing
- Key new executives onboarded during Q3
- New launch timeline pending, subject to clearing member onboarding and final approval
- Preliminary Abaxx Technologies Inc. Base Shelf Prospectus Filed
- Base Carbon Corp. initial financing complete
Dear Shareholders,
Abaxx was founded to develop new tools for smarter market coordination and risk management as commodity markets navigate a complex global energy transition. Ongoing discussions with our industry partners highlight the acute need for our buyer and seller of last resort solutions as countries across Europe and Asia seek to lower their energy import risks and finance cleaner, more flexible energy sources.
During the quarter we made great strides towards the final phases of launching our new markets, with technology integrations and commercial engagement activities proceeding according to the business plan. The precise launch timeline is now pending clearing member onboarding, and finalizing our remaining requirement conditions for both Central Clearing House and Recognized Market Operator final regulatory approvals. The financial institution integrations and regulatory related delays have not created a dependency impeding the introduction of our technology suite of applications in pilot test trading programs.
The decision to pursue both trading and clearing licenses from the start, while more uncertain in terms of the regulatory application timing and clearing member integration dependencies somewhat beyond our control, is proving to be prescient in that it positions the Company to deliver a more comprehensive level of products and services to an expanded addressable market of clients and partners. The Abaxx commercial team is actively engaged with the energy industry on refining the products to launch the exchange. The global economy is experiencing a transition-energy challenge which is certain to expand in complexity. The recent spikes in global natural gas prices, exacerbated by inefficient market structures and a lack of environmental impact transparency in the financing and offtake of long term gas supply, is one of the key problems Abaxx is working to solve.
The closing of our bought deal financing earlier in Q2 solidified our initial launch funding and minimum regulatory capital enabling the Company to add new executives and achieve a key regulatory milestone. The Company also filed a Preliminary Base Shelf Prospectus with the Ontario Securities Commission on September 22, 2021, qualifying the distribution of securities for the 25 months it is in effect. Pending regulatory review and acceptance, this facility would provide flexibility in future financing options, if so needed, and additional comfort to our clearing members and regulators that the Company has ready access to capital in the event of a quickly growing market.
Abaxx Exchange Development Update
The launch of the Abaxx Exchange is proceeding pending the satisfaction of the final regulatory requirements listed in the Approval In Principle letters. Abaxx Exchange has received regulatory Approval In Principle (“AIP”), as a Recognized Market Operator (“RMO”) and Approved Clearing House (“ACH”) with the Monetary Authority of Singapore (“MAS”), on September 7, 2020, and August 25, 2021 respectively. The principle approval of these licenses positions the Company in a rare advantageous regulatory structure as one of the few independent, integrated exchange and clearinghouses in Singapore. Further updates on launch timing will be released when more precise visibility is possible.
The Company is preparing to test trade cycles for non-cleared services using the Company’s front end software applications, and is assembling groups to commence pilot testing in Q4 while final testing continues for the exchange trade order platform and central clearing house. Integrations with Independent Software Vendors who provide middleware connectivity to Futures Commission Merchants and Clearing House members is complete along with trade order interfaces and entry screens. The systems are mutually beneficial but not interdependent.
Technology Suite Testing Including Carbon initiatives and GHG Protocol
An Abaxx-led carbon neutral LNG working group has produced a methodology whereby exchange clients have the ability to link LNG futures contracts with OTC carbon offset markets. The pilot testing phase commencing in Q4 will be a use case for Abaxx Verifier application in addition to the document tradeflow and contract signature tools. Counterparties are being assembled to test the exchange of legal contracts including Master Sales and Purchase Agreements. The objective of the test is to evaluate the reduction in transaction friction from pre and post trade activities, and the creation of feedback loops identifying further refinements.
Base Carbon Formation
The formation of Base Carbon Corp. represents a low cost opportunity to deploy a complete vertical integration of the Abaxx technology suite. This opportunity accruing to shareholders has not required any share dilution by Abaxx. The project is intended to deliver accretive value to shareholders in the form of the approximately 30% current equity position, and the 2.5% royalty in addition to substantiating key performance metrics associated with the software application modules.
Carbon markets are rapidly evolving and remain fragmented. There is apparent unanimity in the view the industry requires transparency in measurement and verification, challenges which Abaxx is confident in deploying solutions.
Base Carbon will begin corporate press releases in the next few weeks.
About Abaxx Technologies
Abaxx is a development stage financial software company that has created 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 Singapore Pte. Ltd. (“ACX”, or “Abaxx.Exchange”) - 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 Corp. and the creator and producer of the SmarterMarkets™ podcast.
For more information please visit abaxx.tech, abaxx.exchange and SmarterMarketsPod.com
About SmarterMarkets™ Podcast
SmarterMarkets™ gets a refresh in Q4 with a new website in addition to improving cohesion among the socio-economic systems Abaxx is building products for: commodities, technology and social systems.
The success of this market education-focused initiative remains a critical driver of our product design methodology and has resulted in positive inbound feedback from some of the most important leaders in our commercial segments. We had three of the most influential energy opinion leaders as part of a short series on energy policy and ESG, and carbon leaders from Abaxx and partners. In advance of the release of our ID++ protocol and associated application modules, a focus in Q3 has been on digital identity and privacy hosted by Michelle Dennedy, CEO PrivacyCode. Guests have included the Chief Privacy Officer of Uber, the SVP of Identity at Mastercard and the CTO of VMWare.
About Base Carbon
Base (for the Benefit of Air, Sea, Earth) Carbon is a globally diversified asset development firm in the business of sourcing, developing and financing carbon credits. The firm’s mandate is to be the preferred project partner for financing, access to markets and technology. Base intends to deploy capital across the carbon ecosystem in a risk-adjusted manner as carbon markets evolve with heightened societal awareness coupled with increased industry and consumer demand for carbon offsetting. Base management and directors have decades of experience in financial structuring, technology development, capital markets, environmental and carbon markets.
For more information please visit basecarbon.com
Media and investor inquiries:
Abaxx Technologies Inc.
Paris Golab, Head of Investor Relations
Tel: +1 246 271 0082
E-mail: info@abaxx.tech
Forward-Looking Statements
This News Release includes certain "forward-looking statements" which do not consist of historical facts. Forward-looking statements include 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 statements may be identified by such terms as “seeking”, “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on 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 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’ objectives, goals or future plans, statements, timing of the commencement of operations 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; 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; 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, an inability to predict and counteract the effects of COVID-19 on the business of the Company, including but not limited to the effects of COVID-19 on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains. Abaxx has also assumed that no significant events occur outside of Abaxx’ 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 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 paragraph 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 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. The NEO Exchange does not accept responsibility for the adequacy or accuracy of this press release.
