JSE LIMITED - Voluntary announcement regarding commercial arrangement with and investment in Globacap Technology Limited

Voluntary announcement regarding commercial arrangement with and investment in Globacap Technology Limited

JSE LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2005/022939/06
Share Code: JSE
ISIN Code: ZAE000079711
LEI: 213800MZ1VUQEBWRFO39
(“JSE” or “Group”)

VOLUNTARY ANNOUNCEMENT REGARDING COMMERCIAL ARRANGEMENT WITH
AND INVESTMENT IN GLOBACAP TECHNOLOGY LIMITED

Shareholders are advised that the JSE has agreed the terms of a
commercial arrangement with Globacap Technology Limited
(“Globacap”) to establish a blockchain-enabled private placements
platform to enable the raising of infrastructure finance and to
allow small-to-medium sized issuers to raise capital in South
Africa (the “Commercial Arrangement”). The Commercial Arrangement
includes digital registry services, and remains subject to
licensing approval requirements.

Rationale for Commercial Arrangement
As private capital markets continue to grow in importance, and
are an increasingly attractive alternative source of capital for
issuers, the JSE intends to create a centralised platform for
issuers to effectively and efficiently raise capital. These
efforts align directly with the Group’s stated growth strategy.

Information on Globacap
Globacap is a next-generation capital markets fintech company
offering blockchain solutions for private capital markets and
digital registry services. Globacap is registered and
headquartered in the United Kingdom (“UK”), and through its
regulated private placement and capital management platform,
digitally administers over £1 billion of private shares and debt
instruments for 60 companies and over 8 000 shareholders
worldwide.

The Globacap platform provides seamless, end-to-end fund raising
management tools designed to automate private issuances in the
equity and debt capital markets. The platform also offers second
round liquidity capabilities that enable holders of equity or
debt instruments to exit or syndicate their original investment.
Additionally, Globacap offers a complementary digital registrar
service that digitises and simplifies the administration of
shareholder registers.

Investment in Globacap
In support of the Commercial Arrangement and in line with the
JSE’s intention to build a longer term strategic relationship
with Globacap to enhance and expand the Group’s product offering,
the JSE will invest GBP4 million for a minority stake in Globacap
(the “Investment”). The Investment remains subject to the
fulfilment of conditions precedent, including approval from the
Financial Conduct Authority in the UK.

Rationale for the Investment and source of funds
The Investment allows the JSE to forge a closer working
association with Globacap in developing the requisite skills,
expertise and relationships to digitise products and services,
and implement next-generation technologies. Through this
collaboration, the JSE intends to replicate and adapt Globacap’s
private markets and registry strategy and product offering across
African markets, while reducing the execution risk of expanding
into new markets and products.

The Investment will be funded from the Group’s existing cash
reserves and is expected to be finalised during Q1 2021.

The information provided in this announcement has not been
reviewed or reported on by the Group’s external auditors.

Sandton
5 November 2020

Transaction Advisor and Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 05-11-2020 09:00:00
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