Quarterly Activities Report
Sydney, July 28, 2022 AEST (ABN Newswire) - NSX Limited (ASX:NSX) is pleased to provide its Activities Report and ASX Appendix 4C Cashflow Statement for the period ended 30 June 2022 (4Q22).
Group Cash Flow Activities Report
Cash at the end of the quarter was $1.2 million, following a net cash outflow of $0.75 million as part of continuing operations.
- During the quarter $0.09 million in cash receipts were received from customers. The cash receipts in the June quarter were down $0.2 million on the previous quarter, and down $0.1 million on the previous corresponding period (pcp). The Company receives most of its annual revenue (on a cash basis) in the September quarter.
- Cash payments for administration costs for the quarter are $0.3 million down $0.4 million on March quarter. ASIC Industry Levy for $0.3 million paid in March 2022.
- Cash payments for intellectual property related to technology upgrades for $0.3 million were reclassified to payments for administration costs in the YTD section.
- Cash payments to staff, corporate and the board for the period were $0.4 million in line with the previous quarter.
- Directors being related parties of the Company, for the purposes of this report, were paid remuneration in the amount of $72k during the June quarter. No other related party payments were made.
- On 21 June and 7 July 2022, two directors bought NSX shares in an on-market purchase of 1,137,500 shares.
- On 1 July 2022 NSX converted 181,434 employee Performance Rights to Ordinary Shares to various staff.
- The Board is aware of the cash position as disclosed in the Appendix 4C, section 8 and in the previous quarterly report. The Company continues to have several options which will increase the cash available to the Company.. These are:
o The Company has invoiced $1.2 million in annual fees to Issuers, brokers and nominated advisers and is in the process of receiving these fees.
o As the proposed JV with Abiliti progresses it is expected to raise capital to support the operations and licence capital requirements during 2022/2023 financial year. NSX's participation and support will also generate consulting fees for the business; and
o The Company retains its ability to place up to 25% of the issued capital to interested parties and/or conduct a rights issue.
o The Company has written support from its major shareholder that confirms participation in any capital raising activity, including a rights issue.
KSA Commodities & Securities Exchange MOU Activities
- As announced on 29 September 2021, NSX Limited entered into a MOU with Ajlan & Bros Holding Group ("Abilitii") in the Kingdom of Saudi Arabia ("KSA") to explore opportunities to create a second securities and the first commodities exchange.
- The Company has continued its work on the business plan for submission to KSA regulators, and if this is successful would see it move to a joint venture arrangement.
ClearPay Joint Venture Activities
- DvP platform software development continues; and
- DESS Digital Ledger Technology system continues to operate with no downtime.
National Stock Exchange (NSXA) Activities
- The activities of the Company's wholly owned subsidiary, NSXA, involved business as usual processing of new admission applications and market operations.
- On 14 July 2022 1 new issuer commenced quotation with additional entities currently progressing through the admissions process.
- The NSXA continues to position itself as the venture and emerging companies exchange, creating a clear differentiation from other Australian markets.
- Draft Exchange Traded Product Rules were completed and along with Draft changes to rules based on ASIC Market Integrity Rules a consultation paper was circulated for comment. Once the consultation feedback has been incorporated into the rules NSXA will proceed to formal lodgment of the rules with ASIC.
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About NSX Limited
NSX Limited (ASX:NSX) via its wholly owned subsidiary National Stock Exchange of Australia Limited (NSXA) operates the Tier 1 Licensed stock exchange facility for the listing of equity securities, corporate debt and investment scheme units. The company is also involved in trading and settlement activities.