Canadian companies Abaxx Technologies and MineHub Technologies have cemented an alliance to “drive digitisation … in physical commodities markets” via a C$2.5 million (US$1.8m) equity exchange.
Abaxx, which gets 10.9% of MineHub through the transaction, was formed in 2018 by ex- Goldman Sachs commodity strategist Josh Crumb to set up new digital trading hubs focused on energy transition materials and liquefied natural gas (LNG). It has raised about C$50 million of equity funding in the past 12 months, backed by some heavyweight investors such as BlackRock and mining leader Robert Friedland.
MineHub has been growing revenues on its metals and mining finance and logistics digital platforms through its deals with copper giant Codelco and Japan’s Sumitomo Corp, among other large groups.
Abaxx and MineHub said they were partnering to explore data integration between their digital tools to “broaden the value available to customers and amplify commercial traction”, and entry into commodities markets beyond MineHub’s main copper and aluminium focus areas.
They said they were also aiming to boost sustainability reporting, carbon offsetting and traceability in physical commodities markets and improve secure hedging efficiency by providing a bridge between physical and financial commodities data.
“Smarter markets require smarter commodity data and the ability to trace commodities through their supply chains,” Crumb said this week.
“MineHub has built a best-in-class team providing secure digitally integrated workflows for physical supply chains.
“We look forward to working with MineHub to bring our shared resources to this shared vision.”
Abaxx can acquire a further 9% of MineHub by converting C$3 million worth of common share purchase warrants at C35c up to November 15 this year.
MineHub shares were up 10% Thursday at 33c, capitalising the company at about $21.4 million.
