Solium Capital Finalizes Revenue Agreement With HSBC InvestDirect in Canada
Calgary, Alberta, April 8, 2008 – Solium Capital Inc. (“Solium”) today announced that it has entered into an agreement with HSBC InvestDirect, a division of HSBC Securities (Canada) Inc., whereby HSBC InvestDirect will pay to Solium administration fees for its access to Shareworks™, Solium’s proprietary record keeping application.
HSBC InvestDirect currently provides real-time order management and securities trading services to users of Solium’s Shareworks application as part of Solium’s end-to-end solution for the administration of equity-based incentive plans for issuers. Under this new agreement, HSBC InvestDirect will pay to Solium administration fees based on the volume of securities transactions that HSBC InvestDirect executes on behalf of clients who use Shareworks. This arrangement is retroactive to January 1, 2008.
Based on trading activity through accounts currently managed by HSBC InvestDirect, it is estimated that during the 2007 year, this agreement would have contributed approximately $690,000 to Solium’s revenue and pre-tax income in such year. The aggregate amount of the administration fees payable to Solium through this agreement will be subject to the volume of securities transactions that HSBC InvestDirect executes which is dependent on a number of factors including the status of vested assets within the incentive plans that Solium administers on behalf of issuers, accounts managed, the trade activity of plan participants, and general market conditions. Subject to the foregoing factors, Solium believes the economic terms associated with this agreement will have a positive material impact on Solium’s financial results.
About Solium Capital Inc.
Solium Capital Inc. (TSX: SUM) specializes in the administration and execution of equity-based incentive and savings plans and is setting the industry standard for service excellence, industry knowledge and innovative technical leadership. Solium’s technology platform, Shareworks, is a leading online solution that integrates the management of multiple equity plan types including stock options, share units, and employee share purchase plans on one comprehensive platform.