Abaxx Tech arranges $30.7-million private placement

Executive Summary

• Abaxx Technologies entered a binding term sheet for a non‑brokered private placement of 1,000,000 units at $22.00 per unit, targeting gross proceeds of $30.7 million.
• Each unit includes one common share and half of a warrant; warrants allow purchase of an additional share at $25.00 for up to 30 months and contain a call provision tied to the VWAP exceeding $30.00.
• Proceeds will fund general corporate purposes, including expansion of Abaxx Exchange & Clearing operations, pilot programs for the Digital Title platform, accelerated hiring, and additional product listings.

Key Details

• Financing Structure: 1,000,000 units @ $22.00 per unit → $30.7 million gross proceeds.
• Unit Composition:
• 1 common share of Abaxx Technologies.
• 0.5 of a share purchase warrant (each full warrant permits purchase of one additional share).
• Warrant Terms:
• Exercise price: $25.00 per share.
• Term: 30 months from issuance.
• Call provision: Company may redeem each warrant for $0.01 after 30‑day notice if the VWAP of Abaxx shares exceeds $30.00 for 20 consecutive trading days.
• Use of Proceeds:
• General corporate and working capital needs.
• Financing ongoing operations of Abaxx Exchange and Clearing, including new futures product listings.
• Supporting pilot programs for the Abaxx Digital Title technology platform.
• Accelerating hiring and go‑to‑market execution.
• Reserving capital for continued exchange and clearing activities.
• Closing Timeline: Expected on or around October 15, 2025, subject to final documentation and regulatory approvals (including Cboe Canada).
• Strategic Rationale (CEO Quote): The financing is positioned as a “vote of confidence” that will enable accelerated hiring, product expansion, and commercialization of the Digital Title platform, which aims to address tokenization of over $50 trillion in financial assets.

Notable Quotes

“This strategic financing comes at a transformational period for Abaxx… The market is beginning to appreciate the long‑term value potential of our two distinct, mutually reinforcing businesses,” – Josh Crumb, CEO.

“A top priority for this funding is the accelerated commercialization of our proprietary Abaxx Digital Title platform… we believe it can play a significant role in the potential tokenization of more than $50 trillion of financial assets.” – Josh Crumb, CEO.