Complii FinTech Solutions signs industry-first trading hub agreement with Dexus

Capital raising, compliance and risk management firm Complii FinTech Solutions (ASX: CF1) has confirmed that its PrimaryMarkets trading platform has signed a commercial agreement to provide a trading hub for the Dexus Wholesale Australian Property Fund.

The agreement — signed during the June quarter — is the first of its kind for the industry and is expected to offer an alternative liquidity solution to Dexus unit holders.

Trading platform

Dexus is a $2 billion open-ended fund that aims to provide stable returns and long-term capital growth for clients through investment in a diverse portfolio of quality Australian office, retail and industrial properties.

The trading hub will be provided through the PrimaryMarkets platform, enabling unit holders to sell to accredited investors, financial advisers and institutional investors registered on the platform.

The deal is expected to benefit Dexus’ client base of brokers and advisers by offering extra investment opportunities that can be expanded to the Complii Group.

Registry divestment

During the quarter, Complii also agreed to divest its online Registry Direct product to its founder and chief executive officer Steuart Roe (also a director of Complii) in a management buyout.

As part of the $3.85 million transaction, Complii will sell all of Registry Direct’s assets including the brand, intellectual property, software platform, key personnel and client list to Mr Roe.

Registry Direct will continue to have access to the Complii platform, including its Adviser Bid and Corporate Highway products, which clients use to place offers to raise capital, as well as PrimaryMarkets to allow clients to trade securities.

Mr Roe will resign from the Complii board upon completion of the deal next month.

The company said the divestment would allow it to focus on its core market and services and would have limited impact on its revenue, profit and cross-selling opportunities.

Quarterly financials

Complii reported $2.65m in receipts from customers in the three months to the end of June, representing an increase of 46% (or $844,000) on the previous quarter’s total of $1.8m.

Part of this was attributed to the PrimaryMarkets platform, which recorded receipts totalling $533,000.

Total group revenue and other income for the period was $2.4m compared to $1.83m in the previous quarter, while negative net cash from operations was $411,000 — an improvement on the previous quarter’s total of $822,000.

Complii had $2.12m cash in the bank, including term deposits, at the end of June and remains debt-free.

The company said it was well-funded and well-resourced to deliver its vision of becoming the industry backbone in capital raising, operational risk and financial services compliance.