FCX introduces facilities enabling automated equity raising for unlisted companies

FCX introduces facilities enabling automated equity raising for unlisted companies & capabilities with Big 4 Bank for investors to make instantaneous, secure investments through digital ledger technology

Welcomes first group of unlisted companies onto the unlisted market

Sydney, 24 November 2022 – FCX, Australia’s first unlisted company securities platform built on distributed ledger technology, today announced new facilities that will revolutionise the way that unlisted companies interact with their shareholders and enable cost efficient, secure flow of capital between unlisted companies and investors. Highlights include:

• Realtime, automated capital raising facilities in a market first that will enable unlisted companies to raise equity quickly and efficiently in the same way as publicly traded companies, but without the costs.
• In collaboration with one of the Big Four Australian banks, creating a one click bank-to-digital wallet function that will allow investors to make instantaneous cash deposits and withdrawals between an FCX wallet and a Big 4 bank account to buy and sell shares in unlisted companies via blockchain.
• Applying regulatory rigour and oversight through the experience and expertise of FCX’s parent company FinClear, itself being ASIC and ASX regulated, with legal advice from Ashurst, a recognised global expert in digital ledger technology.
• Partnering with Digital Asset, a leading global technology provider, to utilise its proprietary Daml DLT technology, also being deployed by Deutsche Börse, Hong Kong Exchanges and Clearing, & Goldman Sachs

FCX is also pleased to welcome onto its platform the first wave of unlisted companies looking for a secure venue where they can attract private investors and access growth capital without having to go public.

David Ferrall, Founder & CEO of FinClear, the parent company of FCX, said: “FCX is a unique ecosystem in the unlisted space. It mirrors what FinClear offers in listed shares and what the future standard of markets infrastructure should be.

“The FCX platform is combining technological and regulatory expertise and rigour to tokenise securities in a secure way, which is a totally different proposition to a crypto currency. We are applying our extensive experience in highly regulated, listed markets to give unlisted companies and investors the security they deserve.”

FCX launches Platform Cash with a Big Four bank

Today’s launch of FCX Platform Cash offers investors a way to seamlessly invest, hold, and move tokenised securities. It is an atomic settlement product that will autogenerate cash tokens for use on the platform.

Any eligible investor[1] (including individuals, superfunds, corporates and advisors) can open an FCX wallet in a matter of minutes. They can then deposit cash into a bank account which will generate a cash token in their FCX wallet.

The cash token can be used to buy and sell shares in unlisted companies from the secure, centralised wallet, with FinClear’s atomic settlement capabilities clearing, settling and transferring direct ownership to the end-investor instantaneously.

FinClear Founder & CEO David Ferrall said: “Platform cash offers investors a way to seamlessly invest, hold, and move tokenised assets. This is crucial for a totally transparent, disintermediated future of investment that allows end-to-end control and visibility – at a lower cost – thanks to automation.

“This is just the start of a radically improved financial ecosystem – highly sophisticated proprietary technology is allowing for a simpler, better investor experience.”

Realtime, automated capital raising capabilities now available for unlisted companies

FCX has also gone live with its capital raising capabilities, which offer a radically enhanced way for unlisted companies to raise funds.

FCX’s cash on platform and atomic settlement capabilities (underpinned by FinClear’s infrastructure) enable unlisted companies looking to raise capital to do so quickly, easily and from a centralised venue. The system allows unlisted companies to:

• Conduct fund raisings with full digital automation – replacing the need for manual processing and book building, thereby improving accuracy and security, reducing cost, and almost totally reducing settlement burdens.
• The platform visibility means companies maintain full transparency over the entire process, from control over investor access and permissions, tracking the status of documentation, execution and payments. View of all shares at once means an at-a-glance real time figure for funds raised.
• The capabilities also offer opportunities for data-driven solutions and efficiently structuring capital raises.

With over two and a half million companies trading in Australia,[2] and less than two thousand listed on the ASX,[3] there is a significant opportunity for unlisted companies looking for investors, and for investors looking for smarter investment opportunities.

Innovators givvable, Circle In & FinClear join FCX

FCX is also pleased to welcome the first wave of unlisted companies onto the platform, including its parent company, FinClear.

David Ferrall commented: “Naturally, as a fast-growing company ourselves, the time came when FinClear had to consider an IPO. But instead, we became the first to join FCX – we are able to keep control and offer real equity to employees but still access the investors we needed to continue our ambitious growth. This is a game-changer for Australian companies, and for the Australian economy.”

Early movers onto the platform are indicative of the demand already underway from unlisted companies recognising the huge advantages to be gained from FCX that allow them to stay unlisted for longer through quickly and efficiently accessing private capital with full transparency and security.

Companies include:

• givvable – an AI-powered platform that simplifies supply chain ESG screening, monitoring, and reporting for corporates and governments.
• Circle In – a parental and caregiver support platform equipping organisations of all sizes to build family-inclusive workplaces – amongst them Coca Cola, EY, Atlassian, and Universal. The software platform is a first in digital social infrastructure, helping managers support employees through parenthood and other life pressures.

Dean Jagger, Head of FCX, commented: “We are delighted to have added these innovative, growth companies to the register, giving them access to capital without any loss of control. These early movers are showing what’s possible within a sophisticated, tokenised ecosystem.”

Interest in unlisted company investments is high – fundraising was up 20% last year to reach a record ~$1.2 trillion[4] with further growth this year. In Australia, private capital AUM hit an all-time high in May of $90 billion.[5]

Unlisted companies have contributed $54 billion to the Australian economy in 2022[6] and with a fully digitised, technology secondary market like FCX, these companies will have the ability to access investors and funds to accelerate growth and economic contributions further.

[1] FCX is available to sophisticated investors and their intermediaries that meet the KYC requirements only.

[2] Source: 2,569.900 actively trading businesses in Australian economy at June 30 2022, ABS

[3] Source: 1,986 domestic companies listed on ASX in September 2022, Statista

[4] Source: ‘Global Private Markets Review 2022’, McKinsey & Company

[5] Source: ‘Australian private capital assets at an all time high of $90 billion’, Australian Investment Council

[6] Source: EY, Funding a brighter future, May 2022