ABXX Abaxx Technologies Inc

Abaxx Technologies Inc. (NEO:ABXX)(OTCQX:ABXXF) (“Abaxx” or the “Company”), a financial software and market infrastructure company, majority shareholder of the Abaxx Commodity Exchange and Clearinghouse (“Abaxx Singapore”), and producer of the SmarterMarkets™ Podcast, summarizes development activities over the past quarter and the general progress of the Company’s business plans.

Highlights:

• Achieved an important corporate milestone by recognizing first revenues on the Company’s 2.5% gross revenue royalty on Base Carbon sales, the first group revenue from an organic development project within Abaxx.
• Advanced commercial development of the Abaxx Exchange ahead of launch as commercial participants reached out to their respective Futures Commission Merchants (FCMs), signaling their intention to trade Abaxx commodity futures product when available; to date, 7 global energy companies, 14 global merchant traders, 7 global financial institution commodity trading groups, 3 global mining companies, 2 OEMs and battery manufacturing companies, 6 utility companies, and 4 financial participants have reached out to trade Abaxx products.
• Abaxx Exchange held its first nickel sulphate industry working group to advance final contract-specification development before submitting the proposed nickel futures products for regulatory review; 11 metals merchant trading companies, 2 global mining companies, 4 global auto and battery manufacturers, and 4 market makers and financial participants have participated in the working group and proposed product specification review.
• Abaxx Exchange and Clearing progressed security and operational readiness testing, completing the final round of user acceptance testing (“UAT”) and advanced technology work required to secure licenses and regulatory approvals; completion of this stage of testing and submission of the related regulatory documentation for the Exchange’s Technology Risk Assessment marked the completion of major operational development milestones, leaving essentially regulatory reserve financing the remaining critical path ahead of final license application submittals.
• Progressed the strategic-partner financing process for an equity financing in the Company’s subsidiary Abaxx Singapore Pte. Ltd., with multiple institutions reviewing a reserve capital financing with the goals of incentivizing exchange ecosystem participation with minority ownership, and to meet regulatory licensing capital requirements prior to the launch of the exchange.
• Received conditional approval from the Cboe US Equity Exchange (the “Cboe US Exchange”) to list the Company’s common shares on Tier 1 of the Cboe US Equities Exchange, an innovative US securities exchange within the Cboe Global Listings Network, as announced on June 2nd, 2023.

Dear Shareholders,

Over the course of the second quarter, the Company maintained focused velocity toward a 2023 launch of the Abaxx Exchange and Clearinghouse in Singapore while recognizing first revenues on the Company’s 2.5% gross revenue royalty on Base Carbon sales of carbon credits. Member engagement accelerated as commercial participants reached out to their respective Futures Commission Merchants (FCMs), signaling their intention to trade Abaxx commodity futures products when available. To date, 43 trading firms, companies and financial participants have reached out to their FCMs with the intention to trade Abaxx products. Collaborative market consultation continued as the Company hosted its first nickel sulphate industry working group to advance final contract-specification development before submitting the proposed nickel futures products for regulatory review.

The Company remains on track to complete RMO and ACH final licensing applications over the coming weeks, subject to all regulatory approvals and successfully completing the Abaxx Singapore strategic financing for required reserve capital and regulatory approval.

Abaxx Exchange and Clearing Developments

Risk and Regulatory: In Q2, the Company advanced the finalization of its risk management policies, including various assessments against regulatory requirements, and is wrapping up the regulatory review for all critical path elements of enterprise risk management, financial risk management, and technology risk management. The Company’s risk and regulatory frameworks and policies were presented to its board of directors and received approval in May of 2023. The Company maintains active engagement with the Monetary Authority of Singapore (“MAS”) to obtain Approved Clearing House (ACH), Approved Holding Company (AHC), and Recognized Market Operator (RMO) licenses once all remaining licensing conditions are met. Estimated timelines to complete the remaining processes have been shared with MAS.

Commercial: The Abaxx Global Commercial team held over 50 direct one-on-one meetings during the month of June alone across Asia, Europe and North America with new and existing commodity trading firms, major auto manufacturers, battery manufacturers and new merchant trading firms across the nickel sulphate and natural gas verticals. These meetings were focused on moving launch partners through various stages of the onboarding process and facilitating FCM connectivity. The team continues to engage with new Exchange participants presenting potential new futures product ideas that the Company may develop — which will deepen the relationship with our trading and FCM partners.

Systems and Operations: In Q2, the Company completed the full and final internal testing of Exchange and Clearing applications and systems, satisfying operational requirements for launch.

Infrastructure: In Q2 2023, all network engineering, failover tests, and security tests required for launch were completed. Upgrades and improvements identified during testing were incorporated, including advancements in deployment automation.

Exchange Product Development: Abaxx Singapore is pleased to announce significant progress towards completion of Stage 3 of its Nickel product development — focused on industry, risk, and regulatory considerations. Engagements, both one-on-one and group discussion, have progressed on the proposed structure of the contract with all key sectors of the industry including mining companies, battery manufacturers, trading companies, financiers, clearing firms, and brokers. Precious metals solutions currently under development have also progressed to Stage 3. The effort in precious metals is broader than futures market development and we look forward to sharing more details at the appropriate time.

Abaxx Console Apps and ID++ Protocol: In Q2 2023, our product and engineering teams completed porting the back-end of Verifier to V2 of the ID++ protocol as well as front-end development of Sign, and began development of a prototype app for KYC as well as initial development of the ID++ V2 SDK. Integration and upgrades of Issuer, Drive, and Messenger remain on target.

Abaxx Corporate Update

Secondary U.S. Listing Application: Abaxx Technologies has announced its forthcoming intralisting on Cboe Global Listings. This development signifies a significant advancement in Abaxx's mission to revolutionize markets and address critical global challenges such as climate change and the energy transition.

Through its integration into Cboe's extensive global exchange network, Abaxx hopes to gain greater access to expanded capital markets, enhanced liquidity, and a broader investor base, enabling growth and increased shareholder value. Abaxx is pleased to strengthen its collaboration with Cboe, a partner that shares a dedication to technological innovation and progress, and eagerly anticipates utilizing Cboe's global reach and services to engage with investors in North America and around the world.

Additionally, the upcoming launch of the Abaxx Commodity Futures Exchange and Clearinghouse, subject to regulatory approval, further solidifies Abaxx's leadership in the transition towards an electrified, low-carbon emissions economy.

At-the-Market Equity Program: In April, Abaxx established an ATM Program which allows the Company to issue, at its discretion, common shares (the “Common Shares”) of the Company having an aggregate offering price of up to C$30 million to the public from time to time through the Agent.

The Company intends to use the net proceeds from the ATM Program for general corporate and working capital requirements, including to fund ongoing operations and/or working capital requirements, to repay indebtedness outstanding from time to time and to complete future acquisitions or for other corporate purposes. For more information about the ATM Program, please refer to our April 26th Press Release.

About Abaxx Technologies

Abaxx is a development-stage financial software and market infrastructure company creating proprietary technological infrastructure for both global commodity exchanges and digital marketplaces. The company’s formative technology increases transaction velocity, data security, and facilitates improved risk management in the majority-owned Abaxx Commodity Exchange (Abaxx Singapore Pte. Ltd.) - a commodity futures exchange seeking final regulatory approvals as a Recognized Market Operator (“RMO”) and Approved Clearing House (“ACH”) with the Monetary Authority of Singapore (“MAS”). Abaxx is a founding shareholder in Base Carbon Inc. and the creator and producer of the SmarterMarkets™ podcast.

For more information please visit abaxx.tech, abaxx.exchange and smartermarkets.media.

Media and investor inquiries:

Abaxx Technologies Inc.Investor Relations TeamTel: +1 246 271 0082E-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’s objectives, goals or future plans, statements regarding anticipated exchange listings, receipt of regulatory approvals, timing of the commencement of operations, financial predictions, 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; the ability to list the Company’s securities on stock exchanges in a timely fashion or at all; 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, and 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 labor and international travel and supply chains. Abaxx has also assumed that no significant events occur outside of Abaxx’s 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's 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