Quarterly Activities Report
Sydney, Oct 30, 2023 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 September 2023 (1Q24).
Group Cash Flow Activities Report
- Cash at the end of the quarter was $2.296 million (with $0.212 million restricted).
- During the quarter $1.117 million in cash receipts were received from customers. 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:
o $0.621 million, which is increased by $0.03 million as compared with June quarter ($0.591 million). Administration expenses in the September quarter included significant payments made to various suppliers:
- Payment to Eventus Systems $91K for trade surveillance;
- Payments to ASX Operations $115K for annual fee and Trade Acceptance Service fees.
- Cash payments to staff, corporate costs and the Board for the period were $0.4 million which is in linewith the previous quarter.
- Please note that there is a re-classification of lease payments under section 1.2 (d) - Payments for leased assets. Previously these were classified with repayment of borrowings under section 3.6.
NSX Limited Corporate Activities
- Related party payments totalled $113K which includes Directors' fees paid in the quarter totalled $79.9K and payment to director related entity Authenticate $32.8K during the quarter.
KSA Mining and Minerals Exchange Activities
On 13 October 2022 the Company announced that Ajlan & Bros Mining Co., Ltd. and NSX Limited, had signed a Term Sheet for a Joint Venture Agreement for the purpose of establishing the Kingdom of Saudi Arabia Metal and Mining Exchange.
In summary the following key points are of note during the period:
- The proposed joint venture with Abiliti for a mining exchange in Saudi Arabia has progressed more slowly than anticipated due to additional reviews Saudi Arabia are undertaking for the introduction of competition in that market.
- Before the JV agreement can be executed the parties are awaiting the completion of that review.
- Due to ongoing conditions in the Middle East and regulatory priorities, we expect to receive further updates on the progress of the proposed venture in the first quarter of 2024.
ClearPay Joint Venture Activities
- We continue to review licensing options for the Joint Venture.
National Stock Exchange Activities
- The activities of the Company's wholly owned subsidiary, National Stock Exchange of Australia ("NSXA"), involved business as usual processing of new admission applications and market operations.
- NSXA continues to engage with ASIC concerning the changes to the rules for Market Integrity rules requirements.
NSXA expects these rules to be in place by the end of calendar year.
- The NETS trading engine replacement project proceeded on schedule and went live on 30 October.
This upgrade enhances NSXA's offering to the marketplace with more connectivity options, facilitate the trading of new financial products once the rules are approved and satisfy ASIC Market Integrity Rule requirements. It places NSXA's trading system on the modern upgrade road map as defined by NASDAQ.
- The market environment for new listings continues to challenging including increased competition, availability of funds to Issuers for public offerings and general economic conditions.
- NSXA is increasing its business development activities and marketing personnel.
- NSXA receives enquiries and suitability for listing submissions and these activities can take time to progress depending on the applicant and the documentation submitted.
- The NSXA continues to position itself as the venture and emerging companies exchange, creating a clear differentiation from other Australian markets and marketing to issuer advisers and relevant capital raising groups.
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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.