First Growth tech investment drives shares higher
First Growth Funds Ltd (ASX:FGF) secured an investment in GlobexUS Holdings Corp for US$250,000 in February, and in this month alone the company’s shares have increased more than 30%.
Globex is a technology company, with offices in Europe and the US, providing a software platform for issuing, managing and trading of regulated security tokens that are fully compliant and operate under a financial services licence.
This makes it a good fit with First Growth, a diversified investment company focused on investing across a broad range of asset classes including listed equities, private equity, blockchain and token offerings.
Globex is expanding into multiple markets by selling its solution to investment banks that provide institutional grade digital asset advisory, capital raising and secondary trading.
It isn’t surprising that this initiative has been well received by First Growth’s shareholders given the benefits that stem from teaming up with experienced partners when targeting relatively new industries.
A proven management team shapes the direction of GlobexUS Holdings Corp with founder Brian Collins having previously built proprietary equity trading solutions for Credit Suisse, and the group’s head of strategy Mitch Edwards brings extensive experience in the security token exchange industry from his time at tZERO.
Adapting to Australian regulatory conditions
Just as Globex’s technology is fully compliant with US regulatory authorities, the platform will be authorised under an AFSL in Australia.
The group is powering the security token offerings for New York-based and fully licensed investment bank TriPoint Global Equities.
First Growth’s investment in Globex provides exposure to the growth of this technology around the world and also the opportunity to partner with leading players in bringing this solution to the Australian market via First Growth Advisory.
First Growth Advisory has signed a partnership agreement with Globex granting the exclusive rights to sell the Globex technology platform in Australia and New Zealand to other investment banks, advisory firms and brokers.
TriPoint dealer agreement provides US exposure
First Growth has also signed a dealer agreement with TriPoint that will allow Australian companies to raise capital, providing exposure to US investors.
This will also mean that institutional and wholesale investors in Australia will have exclusive access to US and Australian security token offerings.
On this note, executive chairman Anoosh Manzoori, said, “We see these new exclusive partnerships as an opportunity to support local companies wanting access to funding in new markets.
“We can also help enable and support local investment banks and advisory firms to gain liquidity of illiquid assets.”
The following demonstrates First Growth’s success in assisting ASX listed entities.
First Growth Advisory can receive fees from advising on security token offerings, listing fees, capital raising and transaction fees.
Additionally, it can receive fees from licensing the technology in Australia and NZ.
Consequently, this is an important development for the group as it opens up new sources of revenue and the potential to grow its client base through providing a broader product offering.