NSX Limited Launches Capital Raising Amid Operating Cash Outflows
NSX Limited reported a net cash outflow from operations of AUD 1.3 million in Q3 2025 but is bolstering its liquidity through a new capital raising initiative to sustain ongoing activities.
- Net cash used in operating activities of AUD 1.302 million for the quarter
- Cash and equivalents at AUD 1.174 million at quarter end
- Net cash provided by financing activities of AUD 1.439 million
- Capital raising via prospectus launched to support operations
- Available funding estimated to cover approximately 0.74 quarters of operating cash outflows
Quarterly Cash Flow Snapshot
NSX Limited, the operator of the National Stock Exchange of Australia, has released its quarterly cash flow report for the period ending 31 March 2025. The company recorded a net cash outflow from operating activities of AUD 1.302 million during the quarter, reflecting ongoing expenditure pressures relative to cash receipts from customers.
Despite these outflows, NSX Limited ended the quarter with cash and cash equivalents totaling AUD 1.174 million, a modest increase from the previous quarter. This liquidity position is supported by net cash inflows from financing activities amounting to AUD 1.439 million, primarily driven by recent capital raising efforts.
Capital Raising to Sustain Operations
To address the funding gap and ensure operational continuity, NSX Limited has launched a capital raising via prospectus. The company also retains the ability to place up to 25% of its issued capital, providing additional flexibility to raise funds as market conditions allow. These measures are designed to shore up working capital and support the business through the current period of negative operating cash flow.
The report highlights that the bulk of NSX’s cash inflows typically occur in the first quarter of the financial year, coinciding with annual customer renewals. While some funds have been received, others are still pending, which partly explains the current liquidity constraints.
Outlook and Operational Continuity
NSX Limited anticipates continuing its operations based on the capital raising and existing funding arrangements. The company estimates that available funding will cover approximately 0.74 quarters of operating cash outflows, underscoring the urgency of the capital raise. Management has expressed confidence in meeting its operational objectives, citing the ongoing capital raising and the ability to place additional shares as key enablers.
Notably, NSX reported no significant investing activities or changes in financing facilities during the quarter, indicating a focus on preserving cash and managing costs amid a challenging environment.
Regulatory and Compliance Context
The company continues to comply with regulatory requirements, including maintaining deposits for investor compensation arrangements as mandated under its stock exchange license. NSX holds a deposit of AUD 212,000 in this regard, which is excluded from available working capital.
Overall, the quarterly cash flow report provides a transparent view of NSX Limited’s current financial position and funding strategy as it navigates a period of operational cash outflows.
Bottom Line?
NSX’s capital raising will be pivotal in bridging its funding gap and sustaining operations through a challenging cash flow period.
Questions in the middle?
- What is the targeted amount and timeline for the current capital raising?
- How will NSX allocate the proceeds from the capital raise to improve cash flow?
- What are the risks if the capital raising does not achieve its intended goals?
