Press Release

THE Newcastle Stock Exchange (NSX) is expected to list on the Australian Stock Exchange (ASX) tomorrow after a $12 million capital raising. General manager Scott Evans said yesterday the money would be used to boost compliance and regulation of the bourse and for business development, that is, encouraging more companies to list. There were currently 30 companies – including Adelaide's Vet Biotechnology – listed on the NSX and Mr Evans said another nine were preparing to list. The Newcastle-based exchange specialises in share-market listings for companies at an earlier stage than those aiming for an ASX listing. Firms listing only need 50 shareholders, compared with 400 for the ASX, and a market capitalisation of $500,000 compared with $10 million. The NSX was also carrying out due diligence on the Bendigo Stock Exchange, with a view to taking it over, Mr Evans said. NSX chief executive Michael Cox said last week if the Bendigo exchange were acquired, it would continue to operate independently. It is proposed the acquisition would be in exchange for 10 million NSX shares. "We will look to transfer some (of Bendigo's) companies to the NSX but groups like the Bendigo community banks, for instance, would be an inappropriate listing for NSX," Mr Cox said. "We will differentiate between the two markets." Mr Cox said the NSX fell dormant after World War II but was "re-activated" in 2000 to provide companies seeking a platform for trading their securities with a viable alternative to the ASX. The company, which made a $270,000 loss last financial year, has not made a forecast in its prospectus and does not anticipate paying a dividend in its first year on the ASX. "We are still very much in the growing phase," Mr Cox said. "The listing allows us to have the resources to put in facilities as we grow." The initial public offer closed early after raising $12 million at an issue price of 50c.