Mr. Douglas Borthwick reports
THE INX DIGITAL COMPANY REPORTS BUSINESS UPDATES AND FISCAL YEAR 2021 FINANCIAL RESULTS
The annual report on Form 20-F of The INX Digital Company Inc., containing audited consolidated financial statements for the year ended Dec. 31, 2021, was filed with the Securities and Exchange Commission on May 2, 2022.
Fiscal year 2021 financial highlights
Raised $83.6-million in the first-ever registered security IPO (initial public offering) on the blockchain;
- Completed reverse takeover (RTO) of Valdy Investments with a further equity raise of $39.6-million/$29.4-million (U.S.) and listed INX's parent company on Canada's NEO Exchange;
- Listed the INX token on the INX Securities ATS;
- Announced board approval of $5-million buyback of tokens and/or shares;
- Acquired interdealer-broker ILS Brokers and broker-dealer/ATS Openfinance;
- Qualified to operate as a money transmitter in 38 U.S. states plus Washington, D.C., and Puerto Rico;
Grew employees from 15 to 87.
Two thousand twenty-one was a pivotal year for INX, as the company completed the world's first ever IPO of a registered security on the blockchain. The IPO raised $83.6-million from 7,250 retail and institutional investors across 73 countries. The
is now listed on the INX Securities ATS (formerly Openfinance).
INX simultaneously completed a reverse takeover of Valdy Investments in Canada, raising a further $39.6-million from selling equity and resulting in the listing of its equity on Canada's NEO exchange.
In building out the company's "nose-to-tail" solution for digital assets, INX purchased ILS Brokers, an NFA regulated interdealer broker with 20 years of history trading with 50-plus Tier 1 and Tier 2 banks, transacting over $95-billion in trade volume per year. The company also completed the purchase of the Openfinance broker/dealer and ATS, renaming them as INX Securities.
The purchases enable INX to aid companies seeking to raise capital from their own communities through the minting and distribution of digital securities, which are then able to be listed on the INX Securities ATS.
On the headline, INX reports a cumulative loss of $215-million. However this number includes a marked-to-market accounting liability to INX token holders of $161.2-million and token warrant liability of $19.8-million. It also includes one-time significant costs associated with the initial token offering (ended April, 2021) and reverse takeover transaction which listed the company's on the NEO Canadian Exchange (listed on Jan. 24, 2022 NEO:
INXD), of $6.8-million. In addition, the amount includes a $10.9-million of share-based payments.
Therefore, the company's adjusted net loss, which is calculated by subtracting from its net loss these liabilities and expenses, is $16.3-million. Adjusted net loss is a non-IFRS (international financial reporting standards) measure.
"Two thousand twenty-one was an exciting time for our company as we completed two significant financings and listed two separate publicly traded instruments in two separate jurisdictions. The INX community has grown significantly as both token and equity holders share our vision of the digital future. In 2021 we laid the table for the inevitable migration of assets onto the blockchain and in 2022 we look to execute. With considerable updates to our technology and capabilities, we will begin to fire on all cylinders -- attracting new users through our soon to be released app, and introducing them to exciting public and private offerings that will join with us their own significant communities," reported Shy Datika, chief executive officer.
About The INX Digital Company Inc.
The company is the holding company for the INX Group, which includes regulated trading platforms for digital securities and cryptocurrencies, combining traditional markets expertise and an innovative fintech approach. The INX Group's vision is to be the preferred global regulated hub for digital assets on the blockchain. The INX Group's overall mission is to bring communities together and empower them with financial innovation. INX's journey started with its initial public token offering of the INX token, in which it raised $83-million (U.S.). The INX Group is shaping the blockchain asset industry through its willingness to work in a regulated environment with oversight from regulators like the Securities Exchange Commission and the Financial Industry Regulatory Authority.
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