RE:RE:news today re the 10 million feeThe news release this morning far exceeded my expectations, and was extremely bullish in my opinion. Here are my quick thoughts, in no particular order...
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Exchange launch appears to be guiding towards Q1, possibly late January or early February following the Singapore Lunar New Year. This means that we're only 5-6 months away from launch, and likely 3-4 months away from final MAS approval for the exchange and clearinghouse.
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Abaxx also indicated that they are likely going to be applying for a listing on a senior US exchange, likely NASDAQ. Reading between the lines, I would assume that the listing on the NASDAQ may occur around the same time as the Exchange Launch in order to maximize marketing exposure for both the exchange and the stock.
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FCMs are already in the process of on-boarding, and their data integrations to the exchange should be completed by October.
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Abaxx will likely be finalizing their exchange launch timeline by September/October in order to promote the launch at conference events in the fall--possibly the next COP meeting (i.e., promote carbon neutral LNG and voluntary carbon credits here).
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Abaxx is applying to the MAS for a Carbon and Battery Metals contracts (likely Copper & Nickel in my opinion)--these would be in addition to their LNG contract. This means that Abaxx may have several contracts to offer at launch in addition to the LNG contract. All things being equal, more contracts creates the potential for higher contract volumes on the exchange, and more revenue for Abaxx shareholders.
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Abaxx has doubled headcount at their technical and exchange teams since January in preparation for the Launch of their SaaS Console and Exchange.
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Multiple parties have approached Abaxx about taking an ownership stake in the Abaxx Exchange and these parties may become strategic JV partners in Abaxx Exchange later on.
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It feels to me like the stock should get back to $4 or $5 CAD in the next few months as we head into launch. If things get crazy, I could even see $10-$12 being hit if/when the NASDAQ listing takes place along with the exchange launch. Keep in mind that a $1B USD market cap--which is not a crazy valuation for international commodities exchange--would equate to a $17 CAD stock price.
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The next few months should be chalk full of fatalysts and news releases as partners are disclosed, approvals received from MAS, new contracts and revenue opportunities created, and technology and exchange milestones reached. It really should be fun to watch. Furthermore, what can really explode the stock higher is the fact that if institutions and funds want to jump in and take a meaningful stake, it will be very challenging due to the low float and heavy insider ownership. Should be an exciting next 6 months ahead.
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Full disclosure, I own quite a bit of Abaxx (and even bought more this morning) and nothing above is guranteed, just my own opinion. Please, as always, do your own DD and gague your own risk tolerance before moving forward with a position.
All the best,
James
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