Huddlestock Fintech

Share Issue/Capital Change • Nov 25, 2020

HUDL-ME - Huddlestock Fintech becomes Norway’s first listed fintech company

HUDL-ME - Huddlestock Fintech becomes Norway’s first listed fintech company

Press release

HUDL-ME - Huddlestock Fintech becomes Norway’s first listed fintech company

OSLO, Norway, 25 November 2020. Delivering a unique software as a service solution for custody banks and trading platforms. The technology enables an end-to-end infrastructure, digitalizing all the workflows. Norwegian fintech company Huddlestock will begin trading on Euronext Growth/Merkur Market - Oslo Børs Thursday 26th November 2020.

Huddlestock Fintech offers two main products, a digital solution for custody banks and a trading connectivity solution for service providers.

“The markets for digitalization of the wealth management industry is growing rapidly. The custody banks are engaging in order to take advantage of this disruptive opportunity and gain competitive edge. One of Europe’s largest banks, BNP Paribas, is implementing our custodian software on their core systems now and will use our technology to digitalize the interaction between their custody division, asset managers and their clients. They see that we will contribute to improving their product offering, increasing their efficiency, while at the same time safeguarding their strict compliance regimes,” says John E. Skajem, CEO in Huddlestock Fintech.

“Our Connectivity solution has the potential to disrupt the market for asset management products and securities trading, as we can offer existing or aspiring trading venues access to the BNP Paribas platform for cost efficient trading in 12.000 securities and thousands of fund products globally,” Skajem says.

Huddlestock Fintech was established in 2014 and has spent the time since then on developing and commercializing its unique technology. The contract with BNP Paribas was signed in 2019, and the Malaysian company MHX was signed in 2020 and is expected to go live online with Huddlestock´s connectivity solution in January 2021. The German finance website Finanzen.net is in final negotiations and is expected to come later in the first quarter of 2021. The company has additional and sizeable clients in the pipeline.

In November 2020, Huddlestock raised NOK 6,3 million from existing shareholders by issuing 3 million new shares at a price of NOK 2,1 per share in a private placement. The placement was oversubscribed. This implied a pre-money valuation of NOK 228 million. Approximately a total of NOK 60 million has been invested in the company since 2014. The company is fully financed for the planned growth. The Management and Board of Directors owns approximately 40 percent of the company’s shares.

“The capital raise gives us a good financial platform for future growth. Being listed on Merkur Market will be a driver for growing the company, as well as an opportunity for investors to take part in the exciting and rapidly growing market,” says Øyvind Hovland, Chair of the Board and co-founder of Huddlestock.

The company has a management team with many years track record from the banking and capital markets industry, with experience from investments banks, asset managers and large global universal banks. Chairman of the Board is Øyvind Hovland, a serial entrepreneur with more than 20 years of experience in starting and scaling companies in various technological industries.

Huddlestock will receive revenues of around NOK 3 million in 2020, growing fast in the years to come, as the BNP Paribas partnership starts generating volumes on the platform.

“For the custody technology, the revenues will be directly linked to BNP Paribas’ amount of assets under custody and the volume of transactions on our connectivity solution. The most significant investments in the technology have already been incurred, so profit margins are expected to grow along with our recurring revenue streams,” John E. Skajem says.

Huddlestock was named Best Fintech Start-up in 2019 and listed among the top 100 most innovative wealth tech companies by Fintech Global.

About Huddlestock:

Huddlestock Fintech is a company that develops unique software as a service solutions for digitizing work processes for custody banks, asset managers and retail trading venues. The open, compliance-optimized and data centric platform allows our customers to offer a differentiated real-time product that reduces cost and increases efficiency. For more information please visit www.huddlestock.com

Contac person:

John E. Skajem

CEO

+47 418 87 412

jes@huddlestock.com