BetaPro Management Inc. has completed an equity investment in BetaShares Holdings Pty Ltd., a private Australian holding company, BetaPro said Monday.

BetaShares Holdings is the parent company of BetaShares Capital Ltd., an Australian company that intends to offer ETFs on the Australian Securities Exchange.

The transaction involves the acquisition by BetaPro of up to a 40% equity stake in BetaShares Holdings for a total subscription price of up to $4.5 million (Australian dollars), if certain milestones are met.

BetaPro has also been granted options to acquire additional equity in BetaShares Holdings over time, with exercise prices based on a multiple of revenues of BetaShares Holdings. BetaPro also has representation on the board of directors of BetaShares Holdings.

“We are delighted with the BetaPro investment in BetaShares. We feel that this could begin to transform Horizons BetaPro from being a leading provider of ETFs in North America into a substantial presence in the global ETFs business,” says Philip Armstrong, CEO of Jovian Capital Corp. Jovian is the parent company of BetaPro.

“The ETF industry in Australia is still young, and growing, and we feel that there is huge potential for BetaShares to become a significant provider of ETF products in that market,” he adds.

“Establishing a presence in such an exciting new market as Australia is a great opportunity for us, and is part of our ongoing strategy to grow BetaPro” says Adam Felesky, CEO of BetaPro.

BetaPro Management Inc. is the manager of the Horizons BetaPro exchange traded funds.

IE