Australian Bond Exchange's financial update

Australian Bond Exchange (ASX:ABE) has addressed a query from the Australian Securities Exchange about its quarterly cash flow report for the period ending 30 September 2024. The report had initially overstated its funding availability, leading ASX to request further clarification on ABE's financial status and plans.

Australian Bond Exchange's strategic overview

Australian Bond Exchange (ASX:ABE) has provided clarity on its financial condition following an ASX inquiry. The company's funding availability was initially overstated in its quarterly cash flow report, prompting a request for additional information. ABE has acknowledged challenges with negative operating cash flows due to global financial uncertainties. To address this, the company has initiated funding measures, including shareholder-approved unsecured convertible notes aimed at raising $20 million across two initiatives to support operations. The Board expects continuity in operations, focusing on efficiency through restructuring and leveraging proprietary technology. ABE is committed to transparency and compliance with ASX regulations, aiming to enhance investor protection and transaction efficiency. The company looks to the future with strategies centered on expanding its client base and improving market liquidity.

Executive insights on financial plans

ABE acknowledged negative operating cash flows due to uncertain global financial markets and cannot ensure positive flows in the short term. The company secured shareholder approval in November 2023 to raise $10 million through unsecured convertible notes, raising $3.5 million by February 2024. An additional $10 million was approved in November 2024. The Board expects continued operations, leveraging organizational restructuring and proprietary technology to reduce costs and expand its client base. ABE confirmed compliance with ASX Listing Rules, emphasizing market transparency and timely disclosures.