Complii (ASX.CF1) – Last week, the web-based compliance solution platform bought private-company trading platform PrimaryMarkets, as a complementary business.
Complii’s platform is used by stockbrokers and advisers to help automate the checking and processing compliance obligations needed to fulfill and protect their AFSL regulatory and compliance obligations.
PrimaryMarkets, on the other hand, operates a secondary market on which securities of unlisted companies can be traded. It also helps companies with capital-raising endeavours and share registry requirements.
Complii’s client base has about 70 firms including Australia’s mid-tier brokers and around 3,500 underlying users.
The deal will enhance Complii’s competitive offering by being able to combine complementary business services to both user bases, to provide a global technology trading platform where compliance services can be provided as well as the trading of unlisted company securities and raising new capital.
It will also bring a wider network for both platforms: the broker and AFSL holder network, plus both ASX-listed and unlisted company shareholders will be able to receive online compliance solutions while being also offered PrimaryMarkets’ share trading platform for unlisted companies. The business model will draw revenue from trading fees, administration fees and listing fees.
It will be an all-scrip deal where Complii’s shares on issue will rise by 105 million and will be voted on at Complii’s Annual General Meeting, scheduled for October 26.
The announcement comes after an encouraging June Quarter earnings report where the company onboarded seven ASFL holders to 95 in total, translating to $711,000 in quarterly revenue receipts and $133,000 in annual recurring revenue.
Shares in the company rose nearly 10% off the back of this news.