Abaxx Technologies Proposes C$20 Million Private Placement of Secured Convertible Debentures
Toronto-based Abaxx Technologies Inc. (CBOE:ABXX)(OTCQX:ABXXF), a leading financial software and market infrastructure company, and indirect majority shareholder of Abaxx Singapore Pte Ltd., the proprietor of Abaxx Commodity Exchange and Clearinghouse (Abaxx Exchange and Abaxx Clearing), has announced its intention to raise up to C$20 million through a non-brokered private placement of secured convertible debentures (the “Offering”).
Details of the Offering
The Offering involves the issuance of Debentures with a maturity date of 36 months following the date of issuance (the “Maturity Date”). The Debentures will bear interest at a rate of 8% per annum, payable semi-annually in arrears. The interest rate may be adjusted based on market conditions at the time of issuance.
Use of Proceeds
Abaxx intends to use the net proceeds from the Offering for working capital and general corporate purposes. Specifically, the funds will support the growth of its financial software business, the expansion of its commodity exchange and clearinghouse, and the continued production of the SmarterMarkets™ Podcast.
Impact on Abaxx Shareholders
The Debentures will be convertible into common shares of Abaxx at the option of the holders, subject to certain conditions. Upon conversion, the Debenture holders will receive common shares equal to the principal amount of the Debentures, plus any accrued and unpaid interest. This conversion feature may dilute the ownership percentage of existing Abaxx shareholders.
Global Market Implications
The Offering represents a strategic move by Abaxx to strengthen its financial position and further its growth objectives. In the broader context, this private placement demonstrates the continued investor interest in the financial technology sector, particularly in companies that offer innovative solutions in commodity exchange and clearing. Moreover, it underscores the potential for growth in the podcasting industry, as more firms recognize the value of content marketing in engaging audiences and generating leads.
Conclusion
Abaxx Technologies’ proposed private placement of C$20 million in secured convertible debentures signifies a significant step forward for the company in its mission to expand its financial software business and strengthen its commodity exchange and clearinghouse. The Offering also highlights the growing investor interest in the financial technology sector and the potential for growth in the podcasting industry. As an interested observer or potential investor, it is essential to monitor Abaxx’s progress and assess the potential implications of this financing move on the company’s future growth prospects and shareholder value.
- Abaxx Technologies plans to raise C$20 million through a non-brokered private placement of secured convertible debentures
- The Debentures will mature in 36 months and bear an 8% annual interest rate
- Proceeds from the Offering will support the growth of Abaxx’s financial software business and commodity exchange and clearinghouse
- Dilution of existing shareholders may occur upon Debenture conversion
- The Offering reflects investor interest in the financial technology sector and the potential growth in the podcasting industry
