NEW YORK, May 3, 2019 /PRNewswire/ -- Ideanomics
(NASDAQ: IDEX) ("Ideanomics" or the "Company"), a global
Fintech and AI catalyst for transformative industries, is pleased
to announce it has acquired an additional 71.7% ownership in
Delaware Board of Trade Holdings,
Inc ("DBOT"), making Ideanomics the largest shareholder with 98.4%.
This acquisition, valued at over US $18
million, signifies that Ideanomics is ready to bridge
capital markets, advisory for digital offerings, and better
transparency for a range of industry stakeholders.
The Delaware Board of Trade
Holdings Inc. operates three companies: (i) DBOT ATS LLC, their SEC
recognized Alternative Trading System; (ii) DBOT Issuer Services
LLC, focused on setting and maintaining issuer standards, as well
as the provision of issuer services to DBOT designated issuers; and
(iii) DBOT Technology Services LLC, focused on the provision of
market data and marketplace connectivity.
"We are in the early stages of a transformation in the global
debt markets. Companies in all points of their lifecycle; seed,
growth, and maturing revenue, are seeking to raise debt capital in
a regulatory compliant manner to provide capital for growth and
liquidity. DBOT is well positioned to provide the platform and
advisory services for those companies and their liquidity needs, in
addition to their current over-the-counter listings business," said
Alf Poor, CEO of Ideanomics. "They
are a part of our strategic vision of a regulatory compliant
ecosystem of regulated ATSs and exchanges which will facilitate the
trading of debt on a global scale. We've been working with
John Wallace, Chairman of DBOT, and
the team for close to 18 months now and, coupled with our
asset-backed debt-based deal origination capabilities, we believe
DBOT can play a significant role as part of the next generation of
a truly connected global capital markets ecosystem for corporations
and their shareholders."
The global debt market hovered around US $243 trillion globally at the end of 2018, more
than 3x global GDP. According to Bank for International Settlements
(BIS), the global bond market outstanding grew from US $73 trillion in 2008 to US $100 trillion in 2017. This represents a
compounded annual growth rate of 3.1% in a decade, outpacing the
global GDP growth rate of 2.4% in the same time period. It is worth
noting that 36.1% of the growth in this period was contributed by
issuance originated in China and
Asia where assets have been formed
from real estate, to lease financing, to government financed
projects, to corporate debt but completely lacking the financial
market product conversion. Asia
claims debt-based fund raising is 2-4% of the market versus 75% in
the US.
Since its initial investment in DBOT, Ideanomics has witnessed
the growth and value of providing access to capital markets, in
addition the need to integrate technologies such as artificial
intelligence to truly reduce inefficiencies and risk, and other
technologies to fractionalize debt products and facilitate their
trading.
"We are very excited to be part of the Ideanomics family, to
leverage their technologies, and monetize their strategic
relationships, both domestically and internationally," said
John Wallace, Chairman of the Board
at DBOT. "In addition to increasing our market presence for our
core OTC offerings, this deal allows us to execute on our vision
and strategy at an accelerated pace through the additional deal
flow and resources that Ideanomics brings to the table. As digital
securities offerings, fractionalization, and tokenization become
more the norm, DBOT will be well positioned to take advantage of
this in a regulatory compliant manner and this will translate into
greater throughput and profitability for both our business and that
of Ideanomics."
We believe that DBOT, with the support of Ideanomics, can lead
the global digital revolution involving debt-based securities
offering and trading, fulfilling such needs of both lack of
products and lack of trading of existing products.
DBOT ATS LLC, operates an SEC recognized Alternative Trading
System that facilitates transactions of secondary trading of
corporate equity securities, including ETFs, REITs, and ADRs.
Secondary trading of private company stock, restricted stock,
unlisted or unregistered warrants, convertible debt, preferred
instruments, employee stock options, and 144A stock; and Operate a
Funding Portal to allow issuers to offer Regulations A+ and D
offerings.
In the wake of industry news such as TD Ameritrade's recent
announcement to begin 24-hour trading on selected ETFs, or
SeedInvest, the equity crowdfunding platform owned by
crypto-friendly payment giant Circle, recent Finra approval to
allow its users to trade startup shares via its accreditation as an
Alternative Trading System; is proof that the ecosystem has
recognized that creating new capital formation options for startups
and growth companies, and giving average retail investors the
opportunity to invest directly into innovative private companies,
is a growing trend.
Ideanomics has already started its global debt ecosystem network
building in Asia by entering into
a MOU with a major exchange to explore debt trading platforms,
establish teams, and partnerships in China mainland Hong
Kong, Singapore, and
Vietnam. Similar partnership
conversations are underway in Europe and the Middle East.
Any intended change to the status of DBOT will be in compliance
with NASD Rule 1017 - Application for Approval of Change in
Ownership, Control, or Business Operations.
About Delaware Board of
Trade
The Delaware Board of
Trade Holdings, Inc. operates three companies: (i) DBOT ATS LLC, an
SEC recognized Alternative Trading System; (ii) DBOT Issuer
Services LLC, focused on setting and maintaining issuer standards,
as well as the provision of issuer services to DBOT designated
issuers; and (iii) DBOT Technology Services LLC, focused on the
provision of market data and marketplace connectivity. DBOT is a
FINRA Member Firm, and a member of the Securities Investor
Protection Corporation ("SIPC"), that operates a fully automated,
auto-execution Alternative Trading System ("ATS").
http://www.dbottrading.com
DBOT ATS LLC ("DBOT")
DBOT is a FINRA member, and a
member of the Securities Investor Protection Corporation ("SIPC"),
that operates a fully automated, auto-execution Alternative Trading
System ("ATS") filed with the US Securities and Exchange
Commission.
About Ideanomics
Ideanomics is a global Fintech
and AI catalyst for transformative industries. Ideanomics combines
deal origination and enablement with the application of blockchain
and artificial intelligence technologies as part of the
next-generation of financial services.
The company is headquartered in New
York, NY, and has offices in Beijing, China. It also has a planned global
center for Technology and Innovation in West Hartford, CT, named Fintech Village.
Safe Harbor Statement
This press release contains
certain statements that may include "forward looking statements".
All statements other than statements of historical fact included
herein are "forward-looking statements." These forward-looking
statements are often identified by the use of forward-looking
terminology such as "believes," "expects" or similar expressions,
involve known and unknown risks and uncertainties, and include
statements regarding our intention to transition our business model
to become a next-generation financial technology company, our
business strategy and planned product offerings, our intention to
phase out our oil trading and consumer electronics businesses, and
potential future financial results. Although the Company believes
that the expectations reflected in such forward-looking statements
are reasonable, they do involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect.
You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a
variety of risks and uncertainties, such as risks related to: our
ability to continue as a going concern; our ability to raise
additional financing to meet our business requirements; the
transformation of our business model; fluctuations in our operating
results; strain to our personnel management, financial systems and
other resources as we grow our business; our ability to attract and
retain key employees and senior management; competitive pressure;
our international operations; and other risks and uncertainties
disclosed under the sections entitled "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our most recent Form 10-K and Form 10-Q
filed with the Securities and Exchange Commission, and similar
disclosures in subsequent reports filed with the SEC, which are
available on the SEC website at www.sec.gov.. All forward-looking
statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by these risk
factors. Other than as required under the securities laws, the
Company does not assume a duty to update these forward-looking
statements.
Investor Relations and Media Contact
Tony Sklar, VP of Communications at
Ideanomics
55 Broadway, 19th Floor New
York, New York 10006
Email: ir@ideanomics.com
www.ideanomics.com
Tel: +1.212.206.1216
View original content to download
multimedia:http://www.prnewswire.com/news-releases/ideanomics-acquires-98-4-of-delaware-board-of-trade-dbot-300843468.html
SOURCE Ideanomics