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Stock Exchange of Newcastle Limited Closes $2.4m Capital Raising Fully Subscribed

Date 10/09/2001

NSX Limited, holding company of The Stock Exchange of Newcastle Limited (NSX), has closed its $2.4 million capital raising fully subscribed.

NSX Limited issued 2.4 million shares at $1.00 each to investors.

According to Mr Steven Pritchard, Chairman of NSX Limited, the successful issue reflected a high level of interest in NSX, despite an extremely difficult IPO climate, and was an important step in NSX's development.

"We now have the resources to put in place infrastructure for expansion and to position NSX as a genuine alternative for companies not able to meet Australian Stock Exchange listing requirements," Mr Pritchard said.

NSX listing requirements are a minimum market capitalisation of $500,000 and minimum shareholder numbers of 50, compared with the ASX requiring minimum market capitalisation of $10 million and 400 shareholders.

NSX provides a listing opportunity for companies, building societies and investment syndicates whose size and corporate structure prevents them from listing on the ASX.

With a prospectus for Australian Wine Exchange securities to be lodged in September, NSX listing of Wine Class Shares is expected in December.

This will offer investors, through securitisation of wine inventories, access to pre-release, current and museum release vintages from producers such as Orlando Wyndham Group, Katnook Estate, Howard Park Wines, Tarrawarra Estate and Knappstein Lenswood Vineyards.

NSX sees advantages of listing on NSX as being to provide liquidity for shareholders, access to capital, facilitation of employee share ownership plans and increased public profile.

According to Mr Warwick Evans, CEO of NSX, the capital raising had enabled implementation of a marketing campaign promoting NSX as a national securities exchange.

"We are actively seeking new listings on a national basis and have several prospects which will enable us to meet our objectives of having a variety of listings over the next year," Mr Evans said.

NSX is a fully electronic exchange with all trading using software similar to that of the Australian Stock Exchange's SEATS trading software.

NSX will remain an unlisted public company at this stage.