Shantanu Jha

New Quantum Holdings Pty Ltd, a Sydney-based technology company that has created a transformational operating system for financial services firms, has completed its acquisition of 80 per cent of Morrison Securities Pty Ltd, an equities clearing, brokerage, and settlement arm of ASX-listed Sequoia Financial Group (ASX: SEQ).

As of August 31, New Quantum concluded the last tranche of the $40.5 million acquisition, creating a combined entity handling over $2.2 billion trades per annum and $20 billion of committed funds under management on the New Quantum platform.

New Quantum Group Chief Executive Officer, Shantanu Jha said, “New Quantum’s acquisition of Morrison Securities is the cornerstone of a series of transactions laying the foundation for both its domestic and global growth.”

In Australia, New Quantum seeks to build on Morrison’s infrastructure and become the definitive platform for fintech and financial services firms, with a unique focus on automating the complex workflows around wealth management and superannuation funds.

Globally, New Quantum plans include developing further strategic partnerships in the Middle East, Asia, and the US, centering its efforts around its leading technology infrastructure platform for government pension funds.

New Quantum is backed by its equity sponsor, Beaconsfield Capital Management, a technology focused hedge fund based in London and Boston. Beaconsfield’s Chief Investment Officer, Shantanu Jha, will be the incoming Group CEO of New Quantum and its subsidiaries, overseeing both domestic and international expansion.

Subsequent to the acquisition’s closing, Jha stated “New Quantum’s mission to automate and abstract away the complexities of regulation, administration, and capital allocation is uniquely geared to creating a revolution in the financial services world.

“We believe New Quantum’s operating system for financial services firms, combined with the venerable financial infrastructure of the newly acquired Morrison, exemplifies the power of vertically integrated business models that can internalise the value created by the underlying technological automation.”

Executive Director of New Quantum’s Australia business, Jong Chung stated that “The acquisition of Morrison makes New Quantum a unique value proposition in the Australian financial services world: we offer a technology platform of unique breadth and depth buttressed by one of Australia’s most reputed independent financial services firms.”

New Quantum’s near future includes a public listing on the Nasdaq via its reverse merger with Canna Global (NASDAQ: CNGLU), with the business combination agreement signed in June valuing New Quantum at $800 million USD, or over $1.2 billion AUD.

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New Quantum and Canna-Global has announced the signing of a definitive Bid Implementation and Business Combination Agreement, resulting in New Quantum becoming a wholly-owned subsidiary of Canna-Global. As a result, New Quantum is expected to be listed on the Nasdaq Global Market under the ticker symbol “NQH.”

The business combination transaction reflects an estimated proforma enterprise value of New Quantum at USD $800M and follows New Quantum’s recent acquisition of a majority interest in Morrison Securities from the ASX-listed, Sequoia Financial Group (ASX:SEQ) in June 2023. The combined entities have, in addition to a leading technology platform, AUD $20 billion of committed funds under management, and a qualified additional pipeline of AUD $80 billion.

New Quantum CEO Jong Chung comments, “New Quantum’s technology and platform have the potential to revolutionize the financial services industry by providing high value services at a scale only their technology makes possible.”

He added: “When we acquired 80 percent of Morrison Securities, it not only confirmed our leadership position in the Australian fintech industry, but also provided us with the ballast to rapidly expand our offering in the market.”

Gerry Combs, CEO of Canna-Global Acquisition Corp comments, “New Quantum is a pioneer with its proprietary Fintech as a service technology platform. We are proud to merge with a homegrown company in Australia that is already high growth, with strong gross margins, and attractive recurring revenue streams. The Nasdaq is the right home for New Quantum and is in line with its growth plans in the USA. Access to public markets will accelerate New Quantum’s ability to drive growth and innovation in an industry ripe for disruption.”
New Quantum’s primary sponsor is Beaconsfield Capital Management, a Boston and London based hedge fund focused on investments in leading technology companies. Beaconsfield Capital Management Co-Founder and CIO Shantanu Jha says, “We are pleased to see New Quantum, and its redoubtable financial technology platform, earn a place on the Nasdaq. We hope to continue guiding New Quantum in developing its market leading technology and its acquisition of leading financial services firms in Australia and Asia.

“We continue to believe New Quantum’s operating system for financial services firms, combined with the venerable financial infrastructure of the newly acquired Morrison, exemplifies the power of vertically integrated business models that can internalise the value created by the underlying technological automation.”

In connection with the proposed transaction, Canna-Global intends to file relevant materials with the US Securities and Exchange Commission (SEC) including a registration statement on Form S-4, which will include a proxy statement/prospectus, and other documents regarding the proposed transaction expected to be finalised in the fourth quarter of 2023. ASIC (Australian Securities & Investments Commission) approval for the Bid Implementation is expected by mid-June, 2023.

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Jong Chung

New Quantum Holding Pty Ltd (NewQuantum), a technology company focused on developing a transformational operating system for financial services, infrastructure, and fintech, has completed stage one of its agreement to acquire 80 per cent of Morrison Securities Pty. Ltd. (Morrison) from ASX listed Sequoia Financial Group (ASX: SEQ).

The official announcement was made to the ASX this week (June 5, 2023), with the remaining 29.9% of the $40.5 million deal to be completed on or prior to August 31, 2023.

NewQuantum’s acquisition of Morrison Securities is the cornerstone of a series of transactions laying the foundation for its global growth strategy.

Upon acquiring and integrating Morrison’s market leading infrastructure offering, New Quantum plans to expand into US capital markets and develop further strategic partnerships in the Middle East, Asia, and the US.

NewQuantum CEO Jong Chung opined that achieving this important milestone is part of the methodical execution of the company’s business strategy, including rapidly integrating NewQuantum and Morrison Securities as the foundation for scale and growth.

The deal, formally signed in March 2023 with a payment of $25.5 million, continues to be funded by Beaconsfield Capital, a London-and-Boston-based technology focused hedge fund with private equity and venture capital arms.

Beaconsfield Capital Co-Founder and Chief Investment Officer, Shantanu Jha added, “As NewQuantum’s sponsor, we are pleased to have financed its acquisition of a majority interest in Morrison, one of Australia’s most storied independent brokerages, clearing, and settlement businesses.

“We hope to continue aiding NewQuantum in broadening its financial services infrastructure offerings as well as its market leading technology. We look forward to catalyzing its growth along all dimensions with the company’s ascension to the NASDAQ by the end of 2023.”

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NewQuantum will pay the ASX-listed Sequoia Financial Group (ASX:SEQ) $40.5 million for 80 per cent of Morrison Securities, with the deal to be completed in three tranches by 31 August 2023.

NewQuantum CEO Jong Chung says this acquisition complements the group’s core business, as well as provide the scalable foundation for measured growth that optimises client services and support.

“Upcoming announcements will see NewQuantum extend its reach into the US capital markets, add major new customers, demonstrate growth through market leading strategic partnerships in the Middle East, Asia, and the US, and the acquisition of other financial advisory and fintech companies. We expect to make these further announcements before 30 June 2023.”

Chung added all the funding is in place to allow NewQuantum to meet its three deadline payments of 20 March, 31 May, and 31 August. A $1.5 million deposit was paid on 13 March when the deal was formally signed.

NewQuantum Founder and Technology Advisor Babar Ali says: “Our industry is continually being disrupted globally by technology and regulatory changes, and this acquisition, as well as the upcoming announcements, will allow New Quantum to take a leadership position by shaping the market dynamics with global strategic initiatives.

Morrison provides us with the ideal platform for the exciting journey ahead for New Quantum and our industry. New Quantum & Morrison Securities will deploy an All-Inclusive suite for wealth management, investing, brokerage, custody, and post-trade processing for advice clients. In addition, the enhanced Investment API will empower any business to offer unique & amazing investment experiences. New Quantum & Morrison Securities’ vision and products have the potential to revolutionise the entire industry and create a whole new generation of investors.”

NewQuantum, which has its headquarters in Sydney, gives independent financial advisors and Fintech companies a fully integrated digital platform required to grow their practices, allowing them to deliver the client experience needed to succeed.

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