In a groundbreaking move, INX Digital Company, a regulated US broker-dealer, Alternative Trading System (ATS), and transfer agent, has announced the successful completion of a significant investment by OpenDeal Inc. operating as Republic. This strategic investment marks a pivotal moment for both companies and sets the stage for a transformative journey in the world of digital assets.
Republic, a global financial powerhouse known for its digital merchant banking services and network of investment platforms, has acquired an impressive 9.5% stake in INX. This investment, amounting to a substantial $5.25 million, will be conveyed to INX through a combination of cash and Preferred B Shares of Republic. This acquisition showcases INX’s pre-money valuation, which now stands at approximately $50 million.
A Visionary Partnership for the Future
This strategic investment isn’t merely a financial transaction; it represents an investment in the future of finance. Both INX and Republic are poised to deepen their collaboration, as stipulated in the Collaboration Agreement dated June 15, 2023. Their shared goal is to revolutionize the global financial landscape, paving the way for a more inclusive and accessible digital economy.
With the successful integration of Republic’s initial investment, the two entities are set to combine their expertise and resources. Their vision is to push the boundaries of what’s achievable in the digital realm. As INX CEO Shy Datika stated, “This is more than just a business investment; it’s an investment in the future.”
Kendrick Nguyen, CEO of Republic, echoed this sentiment, emphasizing that this investment is just the beginning. He envisions not only growth but a fundamental rethinking of how investors, whether institutional or retail, participate in the world of digital finance.
Related: INX and Republic Join Forces to Lead the Finance Revolution
Democratizing Finance and Fostering Growth
The collaboration between Republic and INX encompasses the Subscription Agreement, which synergizes cash and shares, and the Collaboration Agreement. These agreements will drive the democratization of finance and stimulate economic expansion through several key initiatives:
- Tokenized Asset Services: INX’s expertise in tokenized asset services will ensure that these assets are readily available for secondary market trading on the INX ATS, operating around the clock.
- Holistic Trading Mechanisms: The collaboration will seamlessly merge INX’s comprehensive trading mechanisms for vital digital assets like Bitcoin and Ethereum with Republic’s extensive ecosystem.
- FX Broker-Dealer Integration: Republic’s proficiency in FX broker-dealer services will be seamlessly integrated into INX’s infrastructure.
- Integration of Republic Note and INX ATS: The Republic Note will be enlisted on the INX ATS, and the INX trading platform will be harmoniously integrated with the extensive Republic Wallet.
Both the Subscription Agreement and the Collaboration Agreement have been officially filed on the Company’s profile at www.Sedar.com. For more information about INX and its innovative financial instruments, designed to facilitate trading and capital-raising for enterprises worldwide, visit https://www.inx.co/
To navigate this transformative journey, INX has enlisted Weild Capital, LLC (WCL) as its financial advisor, including its role in the Republic investment. This engagement entails a retainer fee of $90,000, a cash fee of $288,750 (equivalent to 5.5% of Republic’s total purchase price), and 661,452 share purchase warrants (equivalent to 3.0% of shares issued to Republic). Each share purchase warrant holds the power to convert into one share at a price of $0.2381.
It’s worth noting that David Weild, the principal of WCL, chairs the INX board. While this engagement qualifies as a “related party transaction” under Multilateral Instrument 61-101, INX is confident in its compliance with relevant regulations and the transparency of this arrangement. A material change report is expected to be filed by INX in connection with the Republic investment.
Related: INX Digital Reports Q2 2023 Financial Results, Revenue Up 161%