MineHub Technologies Inc. (TSXV: MHUB, OTCQB: MHUBF) has finalized a significant strategic partnership with Abaxx Technologies Inc. (Cboe CA: ABXX, OTCQX: ABXXF), enhancing Abaxx’s ownership stake in MineHub from 10.83% to 19.87%. This transaction, completed on December 30, 2024, marks a pivotal moment for both companies as they aim to leverage their combined strengths in the digital supply chain sector.
As part of the agreement, MineHub has issued 8,810,000 common shares at a deemed price of C$0.35 per share to Abaxx in exchange for 237,192 shares of Abaxx. Notably, the shares received from Abaxx are free from any hold period under securities laws due to their acquisition through a prospectus supplement dated December 20, 2024. Conversely, the MineHub shares issued to Abaxx will be subject to a hold period of four months and one day from the closing date.
Haywood Securities Inc. acted as the financial advisor for MineHub during this transaction, receiving 516,530 shares in compensation for its services. These Advisor Shares also carry a hold period that expires four months and one day from issuance.
This partnership is classified as a related party transaction under Multilateral Instrument 61-101 due to Abaxx’s ownership exceeding 10% of MineHub’s outstanding shares. However, it is exempt from formal valuation and minority shareholder approval requirements since the transaction’s fair market value does not exceed 25% of MineHub’s market capitalization.
The partnership is expected to open new avenues for collaboration between MineHub and Abaxx, particularly in enhancing digital solutions for commodity markets. MineHub specializes in providing enterprise-grade digital supply chain solutions that improve efficiency and sustainability within raw material supply chains. By integrating Abaxx’s advanced financial technologies and market infrastructure, both companies aim to create smarter markets that address critical challenges such as energy transition and sustainability reporting.
Josh Crumb, CEO of Abaxx Technologies, emphasized the importance of this collaboration by stating that “smarter markets require smarter commodity data.” He noted that the partnership will enhance the ability to trace commodities through their supply chains, thereby improving transparency and security.
With this strategic partnership solidified, both MineHub and Abaxx are poised to explore various commercial opportunities. They plan to integrate their digital tools more effectively, which could lead to improved customer service and operational efficiency across their respective platforms.
Andrea Aranguren, President and CEO of MineHub, expressed enthusiasm about the potential synergies created by this alliance, highlighting the vast number of collaboration opportunities that have been unlocked. The focus will be on leveraging each other’s strengths to maximize value delivery to customers while responding adeptly to market demands.
The completion of this strategic partnership marks a significant milestone for both MineHub and Abaxx Technologies as they work together to reshape the landscape of commodity markets through innovative digital solutions.
