London, UK - 3 April 2024 - Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) (Arqit), Traxpay GmbH (Traxpay), and Lux Kapitalmarkt Management AG (LuxAG), have entered into a trade and supply chain financing partnership for LuxAG to invest in digital negotiable instruments (DNIs), enabling businesses to use DNIs to get easy access to new pools of working capital.
Leveraging Arqit’s TradeSecure™ application that generates highly secure DNIs, Traxpay’s superior supply chain finance (SCF) technology, and LuxAG’s liquidity management solutions, this partnership will deliver much needed liquidity to the SCF market.
LuxAG is a Luxembourg based one-stop-shop service provider with a focus on the structuring and implementation of capital market-oriented transactions. LuxAG facilitates transactions between institutional investors and corporates in search of efficient working capital financing.
Arqit's first of its kind technology delivers unique, referenceable, and transferable digital finance instruments which have broad commercial application and enable businesses to get closer to pools of available liquidity and improve their cash flows. Arqit is a world leader in complying with new electronic trade documentation standards, by completed legal review, and in making them provably secure.
Traxpay’s Dynamic Financing Platform© integrates with corporate clients’ ERP systems and enables the use of digital negotiable instruments, in the form of Promissory Notes, for Post Maturity Financing, paying suppliers on time while settling their obligation to LuxAG on extended terms. Clients can elect to combine Post Maturity Financing with Dynamic Supplier Financing, paying suppliers early in return for a discount, again with liquidity on demand provided by LuxAG.
David Williams, Founder of Arqit said:
“We are delighted to collaborate with LuxAG and our long-term partner Traxpay to help deliver much needed liquidity to support regional and global supply chains. DNIs enable forward-looking businesses to access and deliver supply chain finance liquidity in real time, with absolute assurance for document integrity, acceptance and transfer – all without undermining their existing terms of trade.”
Markus Wohlgeschaffen, Traxpay MD Markets & Sales said:
“Without forward-thinking fund managers like LuxAG, we couldn’t bring together this offering that will allow us to deliver much needed trade liquidity solutions through non-bank financiers into numerous markets across industry verticals - including retail, manufacturing and engineering.”
Mihail Belostennyj, LuxAG Managing Director said:
“We always aim for the most efficient solutions for our corporate clients while creating sophisticated structures to meet the high demands of institutional investors. Backed by Arqit’s robust security and Traxpay’s superior technology, we have the confidence to lend using digital negotiable instruments. This partnership will enable us to enlarge our offering of efficient financing solutions”.
Caution About Forward-Looking Statements
This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These forward-looking statements are based on Arqit’s expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Arqit’s control. Forward-looking statements in this communication or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Arqit to predict these events or how they may affect it. Except as required by law, Arqit does not have any duty to, and does not intend to, update or revise the forward-looking statements in this communication or elsewhere after the date this communication is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this communication may not occur. Uncertainties and risk factors that could affect Arqit’s future performance and cause results to differ from the forward-looking statements in this release include, but are not limited to: (i) the outcome of any legal proceedings that may be instituted against the Arqit, (ii) the ability to maintain the listing of Arqit’s securities on a national securities exchange, (iii) changes in the competitive and regulated industries in which Arqit operates, variations in operating performance across competitors and changes in laws and regulations affecting Arqit’s business, (iv) the ability to implement business plans, forecasts, and other expectations, and identify and realise additional opportunities, (v) the potential inability of Arqit to successfully deliver its operational technology, (vi) the risk of interruption or failure of Arqit’s information technology and communications system, (vii) the enforceability of Arqit’s intellectual property, and (viii) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Arqit’s annual report on Form 20-F (the “Form 20-F”), filed with the U.S. Securities and Exchange Commission (the “SEC”) on 21 November 2023 and in subsequent filings with the SEC. While the list of factors discussed above and in the Form 20-F and other SEC filings are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realisation of forward-looking statements.