Abaxx Technologies (ABXX) Q1 2025 earnings summary

Executive summary

• Achieved first trades in lithium carbonate and nickel sulfate futures, including the world's first non-Chinese, USD-denominated, physically deliverable lithium carbonate futures contract, and the first OTC LNG cargo indexed to Abaxx LNG futures.

• Launched four new battery metals contracts, expanded product suite with carbon futures, and advanced gold and weather derivatives to the pipeline, including submission of a 1-kilobar Singapore Gold Futures contract for regulatory review.

• Expanded commercial engagement with 29 trading firms, 14 interdealer brokers, and six clearing firms now connected, with additional firms in the pipeline.

• Enhanced global market data distribution, onboarding a major network to reach over 100 million viewers, and improved platform infrastructure and compliance.

• Closed first tranche of private placement, raising C$22.85 million in secured convertible debentures.

Financial highlights

• Completed a $33 million financing tranche and secured C$22.85 million through a non-brokered private placement of secured convertible debentures at 7.0% annual interest, convertible at C$13.00 per share, maturing in 2028.

• Passed peak OpEx headcount and compensation, with plans to normalize operating costs in coming quarters.

• Discussions ongoing for a potential second tranche of financing.

Outlook and guidance

• Focused on growing near-term trading volumes and revenue through 2025, while continuing long-term network and technology development.

• Anticipates completion of multi-currency settlement and collateralization by May 2025 and ISO/IEC 27001 certification for exchange infrastructure by June 2025.

• Expects regulatory approval for new contracts, expansion of market data distribution, and further onboarding of clearing members and trading firms.

• Ongoing development of weather futures, copper spread contracts, and carbon market products.