Abaxx Company Overview - Q1.2024
Abaxx Company Overview - Q1.2024
Abaxx Company Overview - Q1.2024
Abaxx has many business interests, activities and investments. The Company may own assets associated with the topics discussed and therefore has an incentive to see them perform well. Abaxx may buy or sell
associated assets referred to herein for its own profit. A reader should beware that Abaxx and/or their affiliates may liquidate investments or commodities referred to herein at any time, which has the potential to
hurt asset prices.
This document is not, and under no circumstances is to be construed as, a prospectus, an advertisement or a public offering of these securities in Singapore, Canada or the United States. No securities commission or
similar authority in Singapore, Canada, the United States or elsewhere has in any way passed upon the merits of the securities offered hereunder, and any representation to the contrary is an offence. No person is
authorized to give any information or to make any representation not contained in this document and, if given or made, such representation must not be relied upon. Prospective investors are urged to consult their
professional advisors and to carefully consider the risks and challenges typically encountered by companies that are developing new products and entering new and untested markets.
FORWARD-LOOKING INFORMATION
This document contains forward-looking information within the meaning of applicable Singapore, Canadian securities laws and the United States Private Securities legislation. This forward-looking information
includes, or may be based upon, estimates, forecasts, and statements as to management’s expectations with respect to, among other things, demand for and marketability of the Company’s products, prevailing
regulations, the Company’s future growth plans, the timing and scale of future business plans, results of operations, expected use of proceeds of the offering and business prospects and opportunities. Wherever
possible, words such as “anticipate”, “believe”, “expect”, “intend”, “may”, “would”, “could”, “estimate”, “forecast”, and similar expressions have been used to identify such forward-looking information. Forward-looking
information is based on the opinions and estimates of management at the date the information is given and on information available to management at such time. Forward-looking statements are provided to assist
external stakeholders in understanding management's expectations and plan relating to the future as of the date of this document and may not be appropriate for other purposes. Forward- looking information
involves significant risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking
information. These factors include, among other things, ability to continue as a going concern, the highly speculative nature of an investment in securities of the Company, no history of revenues or profits, no
assurance of commercial success of the Company’s products, changes in market demand for the Company’s products, the success and ability of investee companies to execute on business plans, requirements for
additional financing, protection of intellectual property rights, competition, potential infringements of intellectual property rights of others, fluctuations in input costs, reliance on key personnel, technological change,
blockchain regulation, permits and licenses, and conflicts of interest, and should be considered carefully. Prospective investors should not place undue reliance on any forward-looking information. Although the
forward-looking information contained in this document is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure subscribers that actual results
Q1-2024
will be consistent with such forward-looking information as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes
responsibility for the accuracy and completeness of any such forward-looking information. The Company does not undertake to and assumes no obligation to update or revise any such forward-looking information
to reflect new events or circumstances, except as may be required by law.
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Opportunity Overview
Q1-2024
001
A Generational
Opportunity
5
Q1-2024
6
Key Trends
The global energy transition is bolstering demand for key commodities such as
LNG, carbon credits, and battery metals
50%
Projected growth in demand for LNG
15x
Projected growth in demand for
22%
Projected annual growth in demand
by 2030; predicted to be the fastest carbon credits by 2030, with an for nickel sulphate to 2030, which is
growing hydrocarbon over the next addressable market of $50 billion in a key metal required in EV
decade (1) 2030 (2) production (3)
Q1-2024
(1) Morgan Stanley
(2) McKinsey
(3) Roskill
7
The Problem
Strong demand and uncertain supply, coupled with a lack of effective market infrastructure and
risk management tools for many growth commodities has led to several market problems
Q1-2024
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Q1-2024
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MODEL MODEL
Organizations typically focused Organizations that create new
on natural resource exploration, businesses, typically by providing the
evaluation, and development initial team, strategy, and capital
APPROACH APPROACH
Raises capital (private or public), Builds internally, partners with
then explores for new deposits of startups, and spins-out new ventures
various commodities
BENEFITS BENEFITS
✓ Easier access to various capital ✓ Quickly discovers and validates
sources new opportunities
✓ Increased public awareness ✓ Provides optionality
✓ Enhanced rigor and transparency ✓ Asymmetric upside
✓ Establish royalty at early stage
Q1-2024
10
Technology Products
Abaxx files LNG & and Royalty
Abaxx Exchange Abaxx receives Target commercial
formed as primary Approval-in-Principle Carbon Contracts Regulatory Licenses Agreements
Granted (2) launch of Abaxx
development project status from the MAS with MAS; launch
Exchange
preparation
Abaxx Exchange
MAR 2023
NOV 2018
AUG 2021
DEC 2023
Q1 2024
Royalty
Abaxx Tech to receive
3.0% of gross revenue of
Abaxx Singapore Pte. Ltd.
for an indefinite term
SEPT 2022
Incorporation
Royalty
FEB 2022
SEPT 2020
NOV 2020
NOV 2023
Abaxx Tech to receive
2.5% of gross revenue of
Base Carbon for an
indefinite term (3)
Abaxx Tech enters SmarterMarkets
royalty agreement surpasses 1 million
with Base Carbon downloads milestone
Reverse take-over Abaxx ID++ Tech Suite Abaxx closes CAD$30.7mm ID++ Tech Suite
Smarter Markets
transaction of New publishes inaugural product in commercial financing with institutional Wholly owned
Millennium Iron Corp (1) episode alpha phase investors
Q1-2024
(1) Upon successful completion of the reverse takeover of New Millennium (a junior iron ore miner), Abaxx acquired iron ore assets at two Canadian mines (LabMag and KeMag properties)
(2) On December 7th, Monetary Authority of Singapore (MAS) granted an Approved Clearinghouse (ACH) license and Recognized Market Operator (RMO) license to Abaxx Singapore
(3) Base Carbon has the right to buy back the royalty agreement upon the payment of US $150,000,000 to Abaxx Tech
002
Abaxx
Exchange
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Q1-2024
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Q1-2024
Products
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Lower focus on commercial • Extensive collaboration with diverse market participants and
market participants regulators, to create tailored solutions
Q1-2024
15
Why Now?
The energy transition is creating a generational opportunity for a new futures exchange & clearinghouse
LNG Nickel
EU wants ‘new The nickel market as
Mar 2022
Sep 2022
transactions-based it currently stands is
LNG benchmark’ ‘broken’
Global EV demand
Aug 2022
Leading gas importer
Nov 2022
Aug 2022
Aug 2022
market value tops drives up gold
US $2 billion demand by 34%
Nov 2022
Nov 2022
countries need $1per Q3-2022 due to
year in climate finance strong demand
Q1-2024
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Q1-2024
Select prior management experience
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Abaxx Singapore
Green Exchange
LME Clear
NYMEX ClearPort
ELX Futures
AirCarbon
Q1-2024
Muqassa (Saudi Arabia)
18
Commodity Futures 8 6 5
7 Provides stability, continuity and
enables the marketplace to be a
buyer/seller of last resort
Clearinghouses
Physically Settled
Commodity Futures
2 4 2 Results in a reliable market where
market participants can hedge
Q1-2024
and seek out future opportunities
Clearinghouses
Sources: Based on data gathered from the FIA, CFTC, CPMI, Financial Stability Board, Company Filings
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Physical Market
LNG Gold
$12.8T
$6.0T
5% 2.5%
Annual growth Annual growth
$150B $320B
Carbon Nickel
Credits Sulphate
Q1-2024
(1) 2030 potential total addressable market (TAM) assumes a 40x churn rate with additional 20% volume in secondary / basis contracts and 10% additional options market volumes.
We assume 250 trading days in a year in calculating average daily volume (ADV)
(2) Represents notional values
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Illustrative Financial Metrics (ADV & Volumes in mm, Revenues in $USD mm) Illustrative EV Contribution Estimate (3) (EV in $USD mm)
# Product Exchange Revenue (1) ADV (2) Volume
WTI Light Sweet Crude… 3,197
1 WTI Light Sweet Crude Oil NYMEX 320 1.166 291
Eurodollar 3,188
2 Eurodollar (4) CME 319 2.748 687 Brent Crude Oil 2,933
3 Brent Crude Oil ICE 293 0.885 221 10 Year Treasury Note 2,087
4 10 Year Treasury Note CBOT 209 1.799 450 S&P 500 E-mini 2,067
5 S&P 500 E-mini CME 207 1.581 395 North American Natural… 1,818
6 North American Natural Gas ICE 182 0.549 137 Euro Stoxx 50 Index 1,541
7 Euro Stoxx 50 Index Eurex 154 1.169 292 Corn 1,261
8 Corn CBOT 126 0.413 103
Henry Hub Natural Gas 1,134
9 Henry Hub Natural Gas (NG) NYMEX 113 0.414 103
Gold 1,132
10 Gold (GC) COMEX 113 0.346 87
11 Gas Oil ICE 106 0.320 80
Gas Oil 1,060
12 FTSE China A50 Index SGX 103 0.391 98
FTSE China A50 Index 1,026
13 Nasdaq 100 E-mini CME 60 0.460 115 Nasdaq 100 E-mini 602
14 Aluminium LME 57 0.264 66 Aluminium 565
15 CBOE Volatility Index (VX) CBOE 44 0.250 62 CBOE Volatility Index 443
(1) Company estimates for high-level comparative purposes only, derived from high-level industry averages from per trade revenue
Q1-2024
(2) Approximate values for illustrative purposes. Average daily volumes (“ADVs”) derived by dividing total yearly volume by 250 trading days (for consistency)
(3) Based on 2019 FIA data. Enterprise values (“EV”) are derived by applying a 10x EV/Revenue multiple
(4) In April 2023, Eurodollar futures and options contracts were replaced by SOFR (Secured Overnight Financing Rate) equivalent contracts.
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Why Singapore?
Abaxx is strategically located in Singapore, the hub of Asia’s Singapore at a Glance
energy transition
Q1-2024
World-class infrastructure
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<75 <5
Recognised Market Approved Regulatory Officer of CME Group
Operator (RMO) Clearinghouse (ACH)
Q1-2024
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7 Global Financial Institution Commodity Traders 4 Market Makers and Financial Participants
4 Financial Participants
Q1-2024
(1) Defined as commercial participants reaching out to their respective Futures Commission Merchants (FCMs), signaling their intention to trade Abaxx commodity futures product when available
(2) Abaxx held its first nickel sulphate industry working group to advance final contract-specification development before submitting the proposed nickel futures products for regulatory review
003
Abaxx
Technologies
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# TREND EFFECT
Commercial communication
costs
Exponential decrease in cost to read,
2 write, copy, and share information
Opportunity costs
Q1-2024
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VERIFIER
authentication, and access management
Digital Fraud Costs
• Provides users with institutional-grade tools for frictionless authentication,
precision access control, and sophisticated account management
MESSENGER
• A scalable and regulatory compliant financial messaging, video chat and
High commercial transcription application that protects corporate data & trade privacy
communication costs • Provides users with a tailored platform for communicating and executing
transactions, leveraging end-to-end encryption and automated transcription
costs • Provides users with seamless, secure, and cost-effective contract creation
resulting in enhanced trust and higher verifiability
Q1-2024
military-grade security, comprehensive audit trails, and granular access control
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Q1-2024
and businesses emerge)
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Open Source
Unites several identity standards to enable scalable, reliable,
privacy-preserving ways to leverage identity and to ensure
regulatory compliance
Data Privacy
Sharing digital communications, information, trade and
transactions without intermediaries
Security
Leveraging data at rest to limit security vulnerabilities when
exchanging information
Industry Agnostic
The protocol is modular and fundamentally improves
productivity in financial services and a myriad of potential
Q1-2024
other industries.
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Select Experience
Q1-2024
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Select Experience
Q1-2024
004
Capital
Structure
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Capital Structure
Overview of Market Capitalization and Historical Pricing
Market Capitalization (1) (as of January 12, 2024) Historical Stock Price (12-months, $ USD)
Volume Price
Currency $ USD (2)
$10.50 0.3
Share Price $ 10.14
$9.50
Shares Outstanding (mm) 33.27 0.2
$8.50
Volume (millions)
0.2
$7.50
— Short Term Cash and Investment $ 27.65
$6.50
+ Total Debt - 0.1
0.1
+ Total Minority Interest $ (4.32)
$4.50
Q1-2024
(1) Consists of Q3-2023 balance sheet data Source: Capital IQ as of market close January 12, 2024
(2) $ USD figures based on USD/CAD FX rate of 1.3387 (January 12, 2024), per the Bank of Canada
exchange rates
abaxx.tech [email protected] Abaxx Technologies @abaxx_tech
005
Governance Structure
Overview of Organizational Structures
Legend
Mgmt Committee
Q1-2024
006
Entity Relationships
Abaxx has built a family of focused entities that are leveraging technology, human and
financial capital to address issues presented by the global energy transition
Benefits
Brand
Ambassadorship
Route to
exit liquidity
Q1-2024
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