TORONTO, June 30, 2021 (GLOBE NEWSWIRE) -- Abaxx Technologies Inc., (NEO:ABXX) (“Abaxx” or the “Company”), a financial technology (fintech) company, majority shareholder of Abaxx Singapore Pte. Ltd., the Abaxx Commodity Exchange (ACX), and producer of the SmarterMarkets™ Podcast, is pleased to provide an update to shareholders regarding the progress of the company’s road map and milestones in preparation for the launch of Abaxx Commodity Exchange in Singapore, including the Company’s ID++ suite of Abaxx workflow applications and software services.
Dear Shareholders,
As we close out the first half of 2021, our primary project activities are progressing toward our previously stated goal of “internal launch readiness” by the end of the June quarter, with most project activities at or near internal completion and awaiting further coordination and completion with external partners, as detailed below. Abaxx is actively engaged in the senior management review phase before the Monetary Authority of Singapore (“MAS”), our primary regulator, as we await our Approved Clearing House (“ACH”) approval in principle (“AIP”) and advance the exchange toward launch in 2H 2021. As of June 30th, all Clearing House application materials including technical-review comment documentation and supplementary requests have been submitted as required for AIP. No assurances can be made as to the final timing of AIP, but Abaxx has advanced discussions with prospective membership launch-partners to begin the final stage of commercial preparedness.
The Company has categorized development activities broadly as regulatory applications and operations ramp up in Singapore; commercial engagement and exchange product development; internal technology development and external technology integration. In addition to these core Exchange development activities, Abaxx Technologies is testing an advanced suite of productivity and workflow applications which are not required for exchange participants, but function symbiotically with the core capabilities of the Exchange and Clearinghouse. The suite is intended to enable Measurement, Verification and Reporting (MVR) activities related to ESG externality-pricing considerations for commodity market participants.
Regulatory and Operations Milestones
- Abaxx Exchange is awaiting regulatory approval as a Recognized Market Operator (“RMO”) and Approved Clearing House (“ACH”) in review before the MAS. On September 7, 2020, Abaxx received Approval in Principle of its RMO application, subject to various terms and conditions. The Company is in frequent contact with the MAS and is working toward the completion of the ACH AIP in the near term, though no assurances can be made as to the exact date of the approval.
- Abaxx Exchange is evaluating access requirements and preparing necessary filings in secondary jurisdictions including Switzerland, UK and the US, where potentially advantageous.
- Abaxx Exchange has successfully recruited the senior executives required for launch and its management team is substantially in place.
- Target staff levels in the operations, regulatory, risk and tech departments are on track. Remaining operations staff will be scaled up over coming months as the project progresses towards launch. Senior and middle line leadership have developed and completed the necessary training programs for new staff onboarding.
Commercial Engagement and Exchange Product Development
- The Abaxx executive team has extensive experience in organizing markets via various market advisory committees at global commodity exchanges. Abaxx believes the working group approach is the most effective way to form industry consensus and create positive feedback loops to entice market liquidity when launching new products. Abaxx has been leading a global Carbon Neutral LNG Working group since early Q1 and continues to add new participants in each working session.
- While the futures contracts being developed for launch are initially focused on global LNG markets, Abaxx is also advancing new working groups and contract standardization development around voluntary carbon offset markets, precious metals, and critical battery metal markets. Outreach and initial engagement in these market segments has been encouraging, and the Company expects to update new development timelines for additional products by late Q3.
Exchange Technology Development
- The Abaxx Exchange matching engine and clearinghouse software suite is licenced and developed in partnership with Nasdaq Market Technology. In addition to the deployment and testing of this core marketplace software, Abaxx has built proprietary service enhancements for member account access and management, custom trading APIs, custom Fix Field Mapping to support ESG data management, a dynamic greenhouse gas calculator for commodity trading, and other custom trade and data entry services. These proprietary enhancements are integrated with ID++ and the Abaxx Console Applications (Verifier, Chat, AI/ML service integration, Drive, Vault, Sign) developed by Abaxx Technologies, with an innovative cloud architecture developed in line with the principles of Web3.
- Core exchange and clearing software development is complete, with the enhanced services currently in QA and load testing. Abaxx Clearing is preparing for beta testing, and the Company is engaged with Nasdaq and Independent Software Vendors partners to finalize a timeline for all remaining third party software updates, integrations, and additional operational testing and training. The Company expects these final external-vendor milestones to be completed in line with the expected launch timelines following ACH AIP.
ID++ enabled Application Suite and Workflow software services
- As described in previous disclosures, the company has developed a blockchain digital-identity based modular, integrated-suite of productivity and workflow applications, with the services built on open Digital Identity standards (WC3 Verified Credentials and DID Resolvers). The functionality includes end-to-end encrypted instant messaging, voice and video with regulatory compliant transcription, document management and collaboration with multi-party digital signature capabilities, secure document and digital contract storage and transfer protocols.
- The modular nature of the ID++ tools and services has allowed the Company to develop custom exchange and clearing software enhancements, with an initial application use case of bundling verified ESG data and assets within a traditional commodity-trade workflow. Core development and integration of these services with the Abaxx Exchange trade workflow is complete, and the Company is working towards a live demo and pilot group trade execution in the second half of the year to showcase these new tools and services.
- With the June completion of the integration of ID++ tools and services into the Abaxx Exchange, Abaxx has initiated an internal working group to explore B2B and B2C commercialization for the Abaxx Console and applications outside of exchange clients.
- Through work with the Carbon Neutral LNG Working Group, Abaxx believes significant opportunity exists to leverage the ID++ technology architecture, and the relationships and network Abaxx has developed, to form new business models for the ESG economy and the energy transition. Initial business plans to be capitalized and potentially spun out of Abaxx are in advanced stages of development.
SmarterMarkets™ Podcast
The weekly SmarterMarkets™ podcast continues to exceed expectations for listener engagement and stakeholder recognition. Recent series titled, “The Role of Digital Innovation in Advancing the ESG Economy”, and the current series, “ An Emerging Energy Framework for the 22nd Century”, have proven to be both prescient and attractive to prospective partners interested in adding their voices and views to the discussions guiding the corporate strategy.
About Abaxx Technologies
Abaxx is a development stage financial software company that has created proprietary technological infrastructure for both global commodity exchanges and the digital marketplace. The Company’s formative technology increases transaction velocity, data security, and facilitates improved risk management for the majority owned, Abaxx Singapore Pte. Ltd. (“ACX”, “Abaxx Commodity Exchange”, or “Abaxx.Exchange”) - a commodity futures exchange that is seeking final regulatory approvals as a Recognized Market Operator (“RMO”) and Approved Clearing House (“ACH”) in review before the Monetary Authority of Singapore (“MAS”). Abaxx is also the owner of the LabMag and KeMag iron ore assets, resulting from the reverse take-over of New Millennium Iron Corp, and the creator and producer of the SmarterMarkets™ podcast.
For more information please visit abaxx.tech, abaxx.exchange and SmarterMarketsPod.com
Media and Investor Inquiries:
Abaxx Technologies Inc.
Paris Golab, Head of Investor Relations
Tel: +246 243-3390
E-mail: ir@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.