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INX Reports Q2 2021 Cumulative Adjusted Operating Cash Flow and Pro Rata Portion of the Distributable Amount per INX Token

INX Limited today announced the calculation of its cumulative Adjusted Operating Cash Flow as of June 30, 2021 and the pro rata portion of the Distributable Amount per INX Token.

(U.S. Dollars in thousands except as otherwise indicated)

INX Reports Q2 2021

These calculations are based on unaudited quarterly results of operations of the INX Limited and its subsidiaries.

On July 28, 2021, the Company listed the INX Token on its INX Securities trading platform. Since then, the security token market has reached a $1 billion market cap for the first time. The INX Token has achieved a market cap of $320M or almost 30% of the total market cap for security tokens, which is the highest amongst security tokens. Moreover, the INX Securities platform volumes are amongst the highest in the industry. Within the market of security token trading platforms, the INX Securities platform has a total market share of nearly 50%.  In addition, INX recently announced it has reduced the trading fees on the INX Securities platform to only 0.2% for all digital securities listed, down from the previous 2.5% commission.

Subject to the conditions described in the INX Token Purchase Agreement, commencing in calendar year 2021, each INX Token held by parties other than the Company, shall entitle its holder to receive a pro rata portion of an aggregate amount which equals 40% of INX Limited’s cumulative Adjusted Operating Cash Flow, net of Adjusted Operating Cash Flows that have already formed a basis for a prior distribution (such amount, the “Distributable Amount”).

The distribution to holders of the INX Tokens will be based on a final calculation of our cumulative Adjusted Operating Cash Flow and the pro rata portion of the Distributable Amount per INX Token. These final calculations will be provided at the same time that we file our annual report containing our audited financial statements, which may be provided up to 120 days after the last day of our fiscal year (December 31). We will publicly disclose the final calculations by filing such information on a Form 6-K, including such information within our Form 20-F or other annual report, issuing a press release and including the information on our website.

The distribution to INX Token Holders is a contractual obligation of the Company and a right of each INX Token holder of record as of March 31 of a year following a year end for which there was positive cumulative Adjusted Operating Cash Flow. However, the pro rata distribution of our cumulative Adjusted Operating Cash Flow is not self-executing and requires that our board of directors approve the Company’s financial statements and calculate such distribution in good faith. Further, although the annual calculation of our cumulative Adjusted Operating Cash Flow will be based on information provided in the audited consolidated financial statements of INX Limited and its subsidiaries, neither the calculation of the cumulative Adjusted Operating Cash Flow nor any pro rata distributions thereof to token holders will be audited at the time of any distribution.

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