INX and Republic Double Down on Commitment to Transform
Global Digital Asset Space
TORONTO, Aug. 18,
2023 /PRNewswire/ -- The INX Digital Company, Inc.
(NEO: INXD, INXATS: INX, OTCQB: INXDF) ("INX"), a US-regulated
broker-dealer, ATS, and transfer agent (via its wholly owned
subsidiaries), announced today the successful closing of the
initial investment by OpenDeal Inc. (dba Republic) ("Republic"),
pursuant to the Subscription Agreement between INX and Republic
dated June 15, 2023. Republic, a
global financial firm operating a digital merchant bank and a
network of investment platforms, has officially acquired 9.5%
of INX's issued and outstanding shares with a US$5.25 million investment which will be paid to
INX in combination of cash and Preferred B Shares of Republic,
reflecting a pre-money valuation for INX of approximately
US$50 million.
With this significant milestone achieved, both entities are
geared to further their collaboration (pursuant to the
Collaboration Agreement dated June 15,
2023, between INX and Republic), aiming to broaden the
horizons of tokenization infrastructure and democratize access to
digital assets on an international scale. At the closing of the
investment, INX and Republic intend to enter into a prospective
non-binding term sheet in connection with the purchase of all the
issued and outstanding share capital of INX on a fully diluted
basis by Republic in consideration for an amount of up to
US$120 million.
"This is more than just a business investment; it's an
investment in the future, which begins with a deep-rooted
collaboration to reshape the global financial landscape. Having
successfully integrated Republic's initial investment, we are now
looking forward to jointly harnessing our expertise to push the
boundaries of what's possible in the digital economy," remarked Shy
Datika, INX CEO.
Echoing this sentiment, Kendrick
Nguyen, CEO of Republic, expressed, "Our initial investment
in INX is just the starting point. As we move forward together,
we're not just aiming for growth, but for a complete rethink of how
investors participate in digital finance, be they institutional or
retail."
The Republic & INX collaboration includes the Subscription
Agreement, which enables a synergy of cash and shares, and a
Collaboration Agreement, which propels both parties to democratize
finance and foster economic expansion by:
- INX's tokenized asset services, ensuring they are available for
secondary market trading on the round-the-clock INX ATS.
- Seamlessly blending INX's holistic trading mechanisms for
pivotal digital assets, such as Bitcoin and
Ethereum, with Republic's expansive ecosystem.
- Merging Republic's FX broker-dealer prowess into the INX
infrastructure.
- Enlisting the Republic Note on the INX ATS and integrating the
INX trading platform with the comprehensive Republic Wallet
Copies of the Subscription Agreement and Collaboration Agreement
have been filed on the Company's profile at www.Sedar.com. For more
information about INX and its novel trading and capital-raising
financial instruments for enterprises and companies worldwide,
visit https://www.inx.co/.
INX has engaged Weild Capital, LLC ("WCL") to act as its
financial advisor, including in connection with the Republic
investment. Pursuant to that engagement, WCL was paid a retainer
fee of US$90,000 and will be paid a
cash fee of US$288,750 (equal to 5.5%
of the aggregate purchase price paid by Republic), and 661,452
share purchase warrants (equal to 3.0% of the shares issued to
Republic). Each share purchase warrant is exercisable into one
share at a price of US$0.2381.
David Weild, the principal of WCL,
is the chairman of the INX board. The engagement of WCL is a
"related party transaction" for purposes of Multilateral Instrument
61-101 – Protection of Minority Interests in Special
Transactions ("MI 61-101"), but is exempt from the
minority approval and formal valuation requirements under MI 61-101
pursuant to sections 5.5(a) and 5.7(a) thereof. INX expects to
release a material change report which will be filed less than 21
days prior to closing of the Republic investment, which INX
believes reasonable in the circumstances because the engagement of
WCL is on arm's length terms and was previously disclosed in INX's
March 31 and June 30 financial statements and MD&A.
About INX:
INX provides regulated trading platforms
for digital securities and cryptocurrencies. With the
combination of traditional markets expertise and a disruptive
fintech approach, INX provides state-of-the-art solutions to modern
financial problems. INX is led by an experienced and dedicated team
of business, finance, and technology veterans with the shared
vision of redefining the world of capital markets via blockchain
technology and a disciplined regulatory approach.
About The INX Digital Company, Inc.: INX is the holding
company for the INX Group, which includes regulated trading
platforms for digital securities and cryptocurrencies.
The INX Group's vision is to be the preferred global regulated hub
for digital assets on the blockchain. The INX Group's overall
mission is to bring communities together and empower them with
financial innovation. Our journey started with our initial public
token offering of the INX Token in which we raised US$84 million. The INX Group is shaping the
blockchain asset industry through its willingness to work in a
regulated environment with oversight from regulators like the SEC
and FINRA.
In addition to operating two regulated trading platforms for
blockchain assets, INX's interdealer broker, I.L.S. Brokers, plans
to offer non-deliverable cryptocurrency forwards to
Tier-1 banks in the future. For more information, please visit the
INX Group website here.
About Republic:
Headquartered in New York City, Republic is a global financial
firm operating an enterprise-focused digital merchant bank and a
network of multi-jurisdictional retail-focused investment
platforms. Backed by Valor Equity Partners, Galaxy Interactive,
Morgan Stanley, Hashed, AngelList and other leading institutions,
Republic boasts a portfolio of over 1500 companies and a community
of nearly 3M members from over 100
countries. More than $2 billion has
been deployed through investment platforms, funds, and firms within
the Republic family of companies. Republic has established
operations in the US, the UK, the UAE, South Korea, and Singapore.
Cautionary Note Regarding Forward-Looking Information and
Other Disclosures
This press release contains statements
that constitute "forward-looking information" ("forward-looking
information") within the meaning of the applicable Canadian
securities legislation. All statements, other than statements of
historical fact, are forward-looking information and are based on
expectations, estimates and projections as at the date of this news
release. Any statement that discusses predictions, expectations,
beliefs, plans, projections, objectives, assumptions, future events
or performance (often but not always using phrases such as
"expects", or "does not expect", "is expected", "anticipates" or
"does not anticipate", "plans", "budget", "scheduled", "forecasts",
"estimates", "believes" or "intends" or variations of such words
and phrases or stating that certain actions, events or results
"may" or "could", "would", "might" or "will" be taken to occur or
be achieved) are not statements of historical fact and may be
forward-looking information. In disclosing the forward-looking
information contained in this press release, INX has made certain
assumptions, including with respect to, the continuous development
of the INX trading platform, the completion of the transactions
described herein, the offering of non-deliverable
cryptocurrency forwards, and the development of the
digital asset industry. Although INX believes that the expectations
reflected in such forward-looking information are reasonable, it
can give no assurance that the expectations of any forward-looking
information will prove to be correct. Known and unknown risks,
uncertainties, and other factors which may cause the actual results
and future events to differ materially from those expressed or
implied by such forward-looking information. Such factors include
but are not limited to regulatory developments, the state of the
digital securities and cryptocurrencies markets, and
general economic conditions. Accordingly, readers should not place
undue reliance on the forward-looking information contained in this
press release. Except as required by law, INX disclaims any
intention and assumes no obligation to update or revise any
forward-looking information to reflect actual results, whether as a
result of new information, future events, changes in assumptions,
changes in factors affecting such forward-looking information or
otherwise.
Neo Exchange is not responsible for the adequacy or accuracy
of this press release.
This news release does not
constitute an offer to sell or a solicitation of an offer to buy
any of the securities in the United
States. The securities have not been and will not be
registered under the U.S. Securities Act or any state securities
laws and may not be offered or sold within the United States or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is
available.
For further information, contact:
The INX Digital Company, Inc.
Investor Relations
+1 855 657 2314
Contact: Alan Silbert
Email: investorrelations@inx.co
For more information, contact:
Liz Whelan
liz@lwprconsulting.com
(312) 315-0160
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SOURCE The INX Digital Company, Inc.
