Abaxx Provides Q1 2025 Corporate Update

/EIN News/ -- TORONTO, April 08, 2025 (GLOBE NEWSWIRE) -- Abaxx Technologies Inc. (CBOE:ABXX)(OTCQX:ABXXF) (“Abaxx” or the “Company”), a financial software and market infrastructure company, majority shareholder of Abaxx Singapore Pte Ltd., the owner of Abaxx Commodity Exchange and Clearinghouse (individually, “Abaxx Exchange” and “Abaxx Clearing”), and producer of the SmarterMarkets™ Podcast, provides an update on operational milestones and the continued execution of the Company’s business strategy in the first quarter of 2025.

The Company also announces that it plans to host an investor call and presentation on Thursday, April 10th. For more information, see “Q1 2025 Business Update Investor Call” below.

Abaxx Corporate Milestone Highlights

Commercial Development

• Executed the Company’s first trades in Nickel Sulphate and Lithium Carbonate Futures, including the world’s first trade of a non-Chinese, USD-denominated and physically-deliverable Lithium Carbonate Futures contract.
• The Company saw the first OTC LNG cargo trade indexed to Abaxx LNG Futures (see the Company’s press release from March 24, 2025).
• Established active market makers in all three LNG contracts and both carbon contracts across our trading hours.
• A total of six clearing firms, 29 trading firms, and 14 interdealer brokers (IDBs) are now connected to Abaxx Exchange and Clearing, with an additional four clearing firms, 12 trading firms, and 12 IDBs currently in progress.
• Completed the first brand listing under the Lithium Carbonate Futures contract.
• Finalized onboarding with a major global data distribution network expected to expand visibility of Abaxx markets to over 100 million viewers. Added six new market data partners in Q1 2025, bringing the total to six.
• Engaged in exploratory discussions with an external exchange group seeking to use Abaxx Clearing for third-party clearing services, and also engaged in exploratory discussions with external exchange groups based in China to collaborate on cross-jurisdictional (i.e. onshore/offshore) product listing opportunities with Abaxx Exchange and Clearing.

Exchange Product Development

• Launched four new battery metals contracts in Q1 2025, including Nickel Sulphate Futures and three regional physically-deliverable Lithium Carbonate Futures contracts.
• Submitted a 1-kilobar Singapore Gold Futures contract for regulatory review.
• Currently in the final development stage of: (i) a financially-settled copper spread contract to support price transparency in global base metals markets, and (ii) the first contracts in a suite of weather futures.

Risk and Regulatory Development

• Applied to the U.S. Commodity Futures Trading Commission (CFTC) for recognition as a Foreign Board of Trade (FBOT).
• Completed public consultation on rule amendments to introduce additional currencies as acceptable margin collateral.
• Convened the inaugural meeting of its Risk Advisory Panel and successfully executed a default management fire drill.

Systems and Operations Development

• Expanded system capabilities to support multi-currency settlement and collateralization, with projected completion by May 2025.
• Completed the upgrade of Verifier+ (a digital credentials storage provider) into the Abaxx Trade Registration Platform.
• Continued progress on ISO/IEC 27001 audit for Abaxx Exchange infrastructure, with certification targeted for June 2025.
• Enhanced client onboarding workflows and expanded market data access to support growing participant demand.

Abaxx Console Suite Development

• Rolled out Verifier+ v2.0 with expanded capabilities and integrated the app with Abaxx Exchange to enable passwordless login for the Abaxx Trade Registration Platform (ATRP).
• Advanced Abaxx Messenger into pre-release testing as a member support tool for Abaxx Exchange.
• Reached the initial development milestone for Abaxx Sign, currently progressing through testing and feedback with design partners.
• Initiated development of AbaxxOne, a middleware solution connecting enterprise identity systems (e.g., Auth0, Okta) to ID++ and the Abaxx Console Suite.

Financing Development

• On March 27, 2025, the Company announced it had closed the first tranche of a non-brokered private placement, securing C$22.85 million through the issuance of secured convertible debentures bearing 7.0% annual interest, convertible at C$13.00 per share and maturing in 2028. The Company is currently in discussions for a potential second tranche (see the Company’s press release dated March 27, 2025).

Following the successful launch of Abaxx Exchange and Abaxx Clearing in mid-2024, the first quarter of 2025 marked a period of accelerated growth across product development, commercial engagement, and systems expansion. First trades were executed in the Nickel Sulphate and Lithium Carbonate markets, alongside the first OTC LNG cargo trade indexed to Abaxx LNG Futures, reflecting early adoption of our benchmark contracts.

We launched four new contracts across our battery metals product suite and submitted a 1-kilobar Singapore Gold Futures contract to support Asia’s kilobar market, an offering not currently matched in London or New York. In parallel, we incorporated Abaxx Spot, a separate entity designed to support convergence between futures and physical gold markets. While the gold futures contract will be listed by Abaxx Exchange, Abaxx Spot enables electronic settlement and physical delivery of 99.99% purity kilobars in Singapore through a secure, transparent gold pool. Together, these initiatives advance our vision of building smarter markets for physical gold trading. Onboarding momentum continued through targeted, on-the-ground engagement at commercial events globally.

We also scaled platform infrastructure, enhancing client onboarding workflows, expanding market data access, and progressing toward ISO 27001 certification. Core protocol development advanced with upgrades to the ID++ protocol and Verifier+, the initiation of AbaxxOne middleware, and continued development of Abaxx Messenger.

The following sections provide further information related to these developments across business units and platform initiatives.

Abaxx Exchange and Abaxx Clearing Developments

Risk and Regulatory: Abaxx Exchange submitted its application to the U.S. CFTC for recognition as a Foreign Board of Trade (FBOT). Once granted, this recognition would enable U.S. trading participants to directly access products listed on Abaxx Exchange. In February, the Company completed a public consultation on rule amendments to support the introduction of additional currencies as acceptable margin collateral. These amendments are now under regulatory review, with the final list of approved currencies to be announced in due course.

The Company also convened the inaugural meeting of its Risk Advisory Panel on March 17, 2025 with participation from all three direct clearing members. The Risk Advisory Panel serves as a forum for ongoing collaboration between the clearinghouse and its members to strengthen risk management, transparency, and operational resilience. In late March, Abaxx Clearing conducted its first default management firedrill with member participation, a process which validated its preparedness to manage member defaults and execute crisis response procedures effectively.

Commercial: The Abaxx Commercial team secured market participation leading to the first trades in Nickel Sulphate and Lithium Carbonate Futures during the first quarter of 2025, including the world’s first trade of a non-Chinese, USD-denominated and physically-deliverable Lithium Carbonate Futures contract. The quarter also saw the first OTC LNG cargo trade indexed to Abaxx LNG Futures, reflecting growing confidence in Abaxx’s benchmark contracts. Active market makers were established across all three LNG contracts and both carbon contracts during core trading hours.

Onboarding efforts continued across firm types. Abaxx maintained six active clearing members and non-direct clearing firm connections, with four additional clearers, that include global bank clearers, currently in progress to establish new clearing connectivity. Twenty-nine trading firms comprised of merchant traders and financial trading firms are now fully onboarded to execute Block Trades with twelve additional firms currently in the onboarding process; clients connected to Abaxx continue to be able to access Abaxx markets through the central limit order book. Fourteen interdealer brokers (IDBs) are onboarded with twelve more in progress. The quarter also included the first brand listing under the Lithium Carbonate Futures contract.

Abaxx representatives participated in over 300 high-level meetings across 10 global industry events in Q1 2025. Executives were featured on panels at both E-World and the FT Commodities Global Summit, supporting commercial visibility and momentum. Abaxx was also shortlisted for the World LNG Award for Outstanding Contribution 2024.

To support commercial growth in Asia in Q1, Abaxx expanded marketing efforts in China, including the launch of a dedicated Chinese-language website (https://cn.abaxx.exchange/) and the announcement of a co-hosted Mandarin-language battery metals seminar with Shanghai Metals Market, taking place April 8, 2025. The team also engaged in exploratory discussions with an external exchange group seeking to use Abaxx Clearing for third-party clearing services, and also engaged in exploratory discussions with external exchange groups based in China to collaborate on cross-jurisdictional (i.e. onshore/offshore) product listing opportunities with Abaxx Exchange and Clearing.

To support broader market visibility, Abaxx Exchange launched abaxx.exchange/marketdata to provide access to market data publicly. Abaxx also formally launched its market data program in Q1, with six partners onboarded to date: five subscribers and one redistributor. Progress is underway to onboard multiple data distributors, including the leading global financial data provider currently in technical integration, another with a distribution network expected to extend Abaxx market visibility to over 100 million viewers, as well as additional partners supporting our broader data distribution strategy.

Systems and Operations: Abaxx Exchange and Abaxx Clearing continued to operate reliably with no downtime since launch, supporting stable onboarding and trading. Systems testing is underway to support multi-currency settlement and collateralization, with rollout on track for completion by May 2025. The ISO/IEC 27001 audit for Abaxx Exchange infrastructure is in progress, with certification targeted for June 2025.

The Company continues to enhance client onboarding workflows to ensure a seamless experience for market participants. In parallel, integration work is advancing across major market data vendors to expand access to Abaxx Exchange market data and meet growing participant demand.

Exchange Product Development: Development of the Gold Singapore Futures contract progressed through Stage 3 (Industry Review/Risk/Regulatory), with launch planning underway. Abaxx also advanced a regional copper spread futures contract, a suite of weather derivatives, and carbon market contracts aligned with regional compliance programs, each currently in Stage 3. Certain weather and compliance carbon futures are expected to become the first Abaxx contracts priced in currencies other than U.S. dollars.

Enhancements to the LNG contract suite included updates to the LNG Northwest Europe contract to incorporate Phase 2 compliance requirements under the EU Methane Regulation. Additional research is underway to update the list of eligible ports, including newly commissioned infrastructure. As of April 4, 2025, Calcasieu Pass LNG was added as an Eligible Loading Port under the Abaxx LNG Gulf of Mexico Futures Contract.

Phase 2 work also continued on contract extensions designed to complement Abaxx benchmark products, as well as on meeting regulatory requirements for a suite of physically and financially-settled options.

Additional Corporate Updates

Abaxx Console Apps:   The Company released upgrades to the ID++ protocol and Verifier+ in Q1 2025, including integrations with Abaxx Exchange and SmarterMarkets Coffeehouse™. Verifier+ improvements followed its public release on the Apple App Store and Google Play, with enhanced app speed, simplified account recovery, broader device compatibility, and expanded user controls for account editing and deletion. Device-native features such as PIN entry and camera functionality were also upgraded.

Messenger is in its final stages of pre-release testing ahead of deployment as a user support tool for Abaxx Exchange. Feature development for initial release is complete, with improvements to maintaining performance at scale now in testing. These include faster load times for messages, improved performance under load, and interface tools that help support teams manage multiple, ongoing conversations.

Development of AbaxxOne was initiated as a middleware solution connecting enterprise identity systems (e.g., Auth0, Okta) to the Abaxx ecosystem.

Abaxx Sign reached its initial functional milestone and is now progressing through internal testing and design partner feedback cycles.

Integration of PrivacyCode progressed in Q1, with Verifier+ now available as a login option. This marks continued growth in the number of applications and platforms offering Verifier+ as a privacy-enabled authentication method across the Abaxx ecosystem.

SmarterMarkets™: SmarterMarkets™ conducted on-site interviews at key industry events hosted by the Futures Industry Association and Financial Times in Q1 2025, capturing real-time insights from global market participants for upcoming compilation episodes. These conversations contribute to the ongoing dialogue around the future of energy, climate, technology, and finance — conversations that the SmarterMarkets Coffeehouse platform is designed to elevate.

Development also began on the mobile application for SmarterMarkets Coffeehouse™, and contributor onboarding was completed for the first cohort of over 50 thought leaders across energy, AI, digital identity, carbon, and market infrastructure. Early contributors have begun publishing content on the platform. By combining verifiable credentials with tiered levels of access, Coffeehouse is designed to facilitate more open and trusted dialogue than traditional social media environments currently support.

Those interested in joining as commenters or members can join the waitlist at https://smartermarkets.media/waitlist/.

Q1 2025 Business Update Investor Call

The Company plans to host a quarterly business update investor presentation, to provide a business update and respond to investor questions.

The Company will hold the investor presentation via Zoom Meetings on Thursday, April 10th, 2025 at 10:00 a.m. Eastern Standard Time Zone (EST). The Company invites current and prospective shareholders to attend this quarterly business update and Q&A session with the Abaxx executive team. Attendees may email their questions in advance to ir@abaxx.tech.

Registration will be required to access the meeting. Following the presentation, a recording of the session will be made available on the Abaxx Investor Relations website at investors.abaxx.tech.

PRESENTATION DETAILS
DATE: Thursday, April 10, 2025
TIME: 10:00 a.m. EST
LOCATION: Zoom Meeting
To receive the meeting link and passcode, please register here.
QUESTIONS: Please submit questions ahead of the presentation to: ir@abaxx.tech

About Abaxx Technologies

Abaxx is building Smarter Markets — markets empowered by better financial technology and market infrastructure to address our biggest challenges, including the energy transition. In addition to developing and deploying financial technologies that make communication, trade, and transactions easier and more secure, Abaxx is a majority-owner of Abaxx Exchange and Abaxx Clearing, subsidiaries recognized by MAS as an RMO and ACH, respectively.

Abaxx Exchange and Abaxx Clearing are a Singapore-based commodity futures exchange and clearinghouse, introducing centrally cleared, physically deliverable commodities futures and derivatives to provide better price discovery and risk management tools for the commodities critical to our transition to a lower-carbon economy.

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

For more information about this press release, please contact:
Steve Fray, CFO
Tel: +1 647 490 1590

Media and investor inquiries:
Abaxx Technologies Inc.
Investor Relations Team
Tel: +1 647 490 1590
E-mail: ir@abaxx.tech

Forward-Looking Statements

This press release includes certain “forward-looking statements” which do not consist of historical facts. Forward-looking statements include estimates and statements that describe Abaxx’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”, “should”, “intend”, “predict”, “potential”, “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, “continue”, “plan” or the negative of these terms and similar expressions. Since forward-looking statements are based on current expectations and 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 respective management expectations. Risks, uncertainties, assumptions, 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 related to Abaxx in this press release includes, but is not limited to: the business plans and objectives of Abaxx; the development of new products, futures contracts, markets and technologies and associated benefits; anticipated receipt of regulatory approvals; closing of a second tranche offering of secured convertible debentures; and onboarding of clearing members and firms. Such factors impacting forward-looking information include, among others: the inability to receive regulatory approvals in connection with financings or inability to finalize transaction documentation; risks relating to the global economic climate; dilution; Abaxx’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; acquiring and maintaining regulatory approvals for Abaxx’s products and operations; the ability to list Abaxx’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 changes in the price of commodities, capital market conditions, restriction on labor and international travel and supply chains, and the risk factors identified in the Company’s most recent management discussion & analysis filed on SEDAR+. 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 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 paragraphs 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 statements and 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. Abaxx undertakes no obligation to update or revise any forward-looking statements and information, whether as a result of new information, future events or otherwise, except as required by law. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements and information. Cboe Canada does not accept responsibility for the adequacy or accuracy of this press release.