The INX Digital Company, Inc., a US-regulated broker-dealer, ATS, and transfer agent, announced today that Republic, a global financial firm operating a digital merchant bank and a network of investment platforms, has entered into an agreement with INX (the “Investment Agreement”) pursuant to which it will invest US$5.25 million in INX at an approximate US$50 million pre-money valuation (the “Transaction”). Following completion of the investment, Republic will own approximately 9.5% of the issued and outstanding shares of INX.
Concurrently, INX and Republic have entered into a collaboration agreement, pursuant to which the parties will seek to expand the breadth and depth of tokenization infrastructure and access to digital assets for investors worldwide.
In addition, at the closing of the Transaction, Republic and INX have committed to enter into a non-binding term sheet, which contemplates a transaction in which Republic will acquire 100% of INX common equity at a valuation of up to US$120 million, pursuant to a plan of arrangement.
The partnership between Republic and INX is built on a foundation of shared values and a commitment to the democratization of finance across global markets.
By combining their expertise and resources in both TradFi (traditional finance) and DeFi (decentralized finance), both companies are poised to introduce a wide range of compliant solutions that cater to both primary and secondary markets while also building the underlying retail-focused infrastructure to support the needs of a booming digital economy.
The collaboration between Republic Group and INX represents a pivotal moment in the evolution of finance. Through their synergistic partnership, the two leading fintech firms aim to expedite the democratization of finance, bring a wider range of investment products to the retail public, boost financial inclusion and participation, and stimulate economic growth.
“Our goal is to nurture and grow the global token economy by establishing the necessary infrastructure to not only support its operations but to also curate an investment experience that excites investors from all over the world,” said Shy Datika, CEO of INX. “Through our collaboration with Republic as a strategic investor, we are creating a fertile environment for both traditional and digital assets to thrive.”
“This investment signifies the dawn of a new era in finance,” said Kendrick Nguyen, CEO of Republic. “By integrating INX’s digital trading infrastructure for financial markets with Republic’s expertise in primary distribution, we are redefining the way capital is raised and empowering both institutional and retail investors globally.”
Investment Agreement Summary
Pursuant to the terms of the Investment Agreement, the consideration payable by Republic under the Transaction will be a combination of cash and shares. The closing of the Transaction is expected to take place within 60 days, subject to regulatory approvals.
Collaboration Agreement Summary
Pursuant to the terms of the Collaboration Agreement, the parties will seek to democratize finance, enable wider access to investment opportunities and stimulate economic growth, including through:
INX provides regulated trading platforms for digital securities and cryptocurrencies. With the combination of traditional markets expertise and a disruptive fintech approach, INX provides state-of-the-art solutions to modern financial problems. INX is led by an experienced and dedicated team of business, finance, and technology veterans with the shared vision of redefining the world of capital markets via blockchain technology and a disciplined regulatory approach.
INX is the holding company for the INX Group, which includes regulated trading platforms for digital securities and cryptocurrencies. 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. Our journey started with our initial public token offering of the INX Token in which we raised US$84 million. The INX Group is shaping the blockchain asset industry through its willingness to work in a regulated environment with oversight from regulators like the SEC and FINRA.
Headquartered in New York City, Republic is a global financial firm operating an enterprise-focused digital merchant bank and a network of multi-jurisdictional retail-focused investment platforms. Backed by Valor Equity Partners, Galaxy Interactive, Morgan Stanley, Hashed, AngelList and other leading institutions, Republic boasts a portfolio of over 1500 companies and a community of nearly 3M members from over 100 countries. More than $2 billion has been deployed through investment platforms, funds, and firms within the Republic family of companies. Republic has established operations in the US, the UK, the UAE, South Korea, and Singapore.
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