The Nsx Ltd (ASX: NSX) share price more than doubled after the alternative stock exchange operator posted its quarterly update.
The NSX share price rocketed over 112% to 18 cents during lunch time trade when the All Ordinaries (Index:^AORD) (ASX:XAO) and the S&P/ASX 200 Index (Index:^AXJO) are only 0.1% higher.
Investors got excited after management reported a strong pick-up in the number of companies looking to list on its bourse.
NSX share price jumps on listing interest
NSX operates the National Stock Exchange of Australia (NSXA). During the quarter, it received four new pre-listing submissions, one new listing application, one new nominated adviser application and two new participant applications.
The forward pipeline for listings now stands at 30 applicants and volumes and interest have increased appreciably, added NSX.
Cash position and IT projects support NSX stock
Further, NSX reported an increase in cash of $450,000 to $5 million in the period. It also posted a net operating cash inflow of $651,000 and a $130,000 decrease in admin and corporate costs to $330,000.
Management provided an update on the NSXA Trade Acceptance Service (TAS) project. It said TAS is ready to be switched on with all but three of the 16 market participants.
It is also making progress on its IT trading system that will allow it to operate in parallel to the ASX Ltd (ASX: ASX) CHESS system. In due course, NSX believes NSXA will operate autonomously from CHESS.
Possible dark clouds
But it wasn't all good news. Management suffered a defeat at its extraordinary general meeting (EGM) that was held in the quarter. Shareholders successfully voted against all resolutions to appoint additional directors to the board.
"The Company has received a section 249D notice with a resolution to remove Mr Thomas Price as a director," said the NSX in its ASX statement.
"The EGM for this meeting is scheduled for the 30 October 2020."
The company is also still feeling the impact from COVID‐19, which is affecting staff workflows. This is particularly pronounced in Victoria due to the mismanagement of the first outbreak. Fortunately, most of NSX's business operations are undertaken in New South Wales.
