Although they may be regarded as the unfashionable sibling to their more flashy ASX counterpart, the National Stock Exchange (ASX: NSX) can hold their head up high knowing they haven’t had half their Executive team resign over the past six months and they’ll probably reference that when they raise capital for expansion into Saudi Arabia.
With approximately 50 companies publicly listed on the NSX, its pales in comparison to more than 2,000 on the ASX but that has never stopped the NSX in their growth ambitions with the Kingdom of Saudi Arabia (KSA) set in their sights.
Discussions with their Saudi-based partner Abiliti continue with a business plan being drafted in preparation for submission to KSA regulators. Should those discussions progress, the NSX has flagged plans to raise capital in the near future as the Company runs a tight ship with just $945k of cash on hand.
That cash holding has been steadily drained in order for the market operator to continue their regular business activities which for the 12 months ended 30 June 2022 have resulted in operating cash outflows to the tune of $2.2 million. According to their June quarter report, the NSX estimates that they have just 5 months of funding in the bank to continue their market operating activities, and thus made no effort to pretend they won’t need to raise capital in the near future.
The cash flow statement however, does not include $1.2 million in outstanding invoices for annual fees the NSX has issued to issuers, brokers and nominated advisers that utilise the NSX for its sharemarket services.
For those that consider the NSX to be a dead market walking, the operator had one new company commence quotation on the NSX on 14 July 2022 when BetTube was admitted to the NSX.
Touting themselves to “Transform wagering for the better”, BetTube (NSX: BOX) “aims to produce highly engaging product offerings using AI and Machine Learning to provide a responsible service of wagering”, according to their website.
Like the sibling that celebrates rare wins with regular reminders, the NSX appears to have sturdier leadership than the market leader, with the ASX recently announcing a raft of Executive resignations.
These first kicked off when Chief Executive Officer Domenic Stevens submitted his resignation in February 2022. This was then followed by Gillian Larkins’ notice to depart as Chief Financial Officer in July 2022 while Janine Ryan confirmed on Tuesday that she too will depart her role as Chief Compliance Officer.
With those key departures, it brings an opportunity for newly appointed CEO Helen Lofthouse to start fresh in an attempt to revitalise the ASX’s brand as the primary market operator following years of failed tech projects at the ASX.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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