Netcapital Announces Launch of Beta Version for Secondary Trading Platform

Rhea-AI Summary

Netcapital Inc. (Nasdaq: NCPL, NCPLW) has launched a beta version of its secondary trading platform to a closed group of users. This platform, developed through a partnership with Templum Markets , aims to provide potential secondary trading opportunities for investors who purchase stock through Netcapital's funding portal. Templum operates an alternative trading system (ATS) approved in 53 U.S. states and territories for trading private securities.

Netcapital plans to offer secondary trading capability through Templum ATS to all its issuers and investors by the end of 2024. However, the launch is subject to regulatory approval and oversight. CEO Martin Kay emphasized that this feature addresses the lack of liquidity in private company investments, potentially giving Netcapital a competitive edge in the digital private markets landscape.

Positive

• Launch of beta version for secondary trading platform
• Partnership with Templum Markets for alternative trading system
• Potential to provide liquidity for private company investments
• Planned expansion of secondary trading capability to all Netcapital issuers and investors by end of 2024

Negative

• Secondary trading platform launch subject to extensive regulation and potential delays
• Regulatory objections may prevent the launch of the proposed platform

BOSTON--(BUSINESS WIRE)-- Netcapital Inc. (Nasdaq: NCPL, NCPLW) (the “Company”), a digital private capital markets ecosystem, today announced the launch of its beta version for a secondary trading platform to a closed group of users. Through a previously announced alternative trading relationship with Templum Markets LLC (“Templum”), this secondary trading platform may provide investors who purchase stock through the Netcapital funding portal with the potential for secondary trading through access to Templum’s alternative trading system (“Templum ATS”). Templum is a company that provides capital markets infrastructure for trading private equity securities, and operates an ATS with approval in 53 U.S. states and territories for the trading of unregistered or private securities. Netcapital intends to offer such secondary trading capability through the Templum ATS to all Netcapital issuers and investors before the end of 2024. The operation of the Templum ATS, however, remains subject to extensive regulation and oversight. Any regulatory delays or objections will result in delays in our ability to launch the proposed secondary trading platform, if at all.

“This is an important milestone for Netcapital,” said Martin Kay, CEO of Netcapital Inc. “Lack of liquidity is a key issue for investors in private companies in our targeted market, and we believe this capability represents a strong competitive advantage and a key differentiator for Netcapital within the digital private markets landscape.”

About Netcapital Inc.

Netcapital Inc. is a fintech company with a scalable technology platform that allows private companies to raise capital online and provides private equity investment opportunities to investors. The Company's consulting group, Netcapital Advisors, provides marketing and strategic advice and takes equity positions in select companies. The Company’s funding portal, Netcapital Funding Portal, Inc. is registered with the U.S. Securities & Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA), a registered national securities association.

Forward Looking Statements

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240718565544/en/

Investor

800-460-0815

ir@netcapital.com

Source: Netcapital Inc.

FAQ

What is the latest development announced by Netcapital (NCPL)?

Netcapital (NCPL) has launched a beta version of its secondary trading platform to a closed group of users, aiming to provide potential secondary trading opportunities for investors in private companies.

Who is Netcapital (NCPL) partnering with for the secondary trading platform?

Netcapital (NCPL) is partnering with Templum Markets , which operates an alternative trading system (ATS) approved in 53 U.S. states and territories for trading private securities.

When does Netcapital (NCPL) plan to offer secondary trading capability to all its issuers and investors?

Netcapital (NCPL) intends to offer secondary trading capability through the Templum ATS to all its issuers and investors before the end of 2024, subject to regulatory approval.

What potential advantage does the secondary trading platform offer Netcapital (NCPL)?

The secondary trading platform could provide a competitive advantage for Netcapital (NCPL) by addressing the lack of liquidity in private company investments, which is a key issue for investors in their targeted market.