GSTechnologies Completing a successful fundraising to rapidly develop a neobanking activity based on blockchain
GSTechnologies Limited (LON: GST), the information technology and information technology solutions company, today announced that the company has raised gross proceeds of £ 1.0million through the placement of 50 000,000 shares of no par value in the company at a price of 2 pence per share. The placement was organized by ETX Capital.
The issue of the Placement Shares within the framework of the Placement falls within the existing powers of attribution of the Company. The investment shares are equivalent to approximately 3.48% of the currently issued share capital of the company.
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Context and reasons for the placement
On March 5, 2021, the Company announced its intention to focus more on new, higher growth activities based on blockchain technology, in particular those applicable to the banking and financial services sectors. The Company has created two new wholly owned subsidiaries, GS Fintech Ltd in the UK and GS Fintech Pte Ltd in Singapore to develop this strategy.
As part of the Company’s collaboration agreement with Wise MPay, as announced on May 28, 2021, Wise MPay provides the Company with software and services to develop blockchain technology-based products and services for the industry. banking and financial services, in line with the Group’s objective of enabling its customers to make peer-to-peer payments around the world quickly and at a lower cost.
On October 5, 2021, in order to further accelerate the implementation of the Group’s strategy, the Company announced its conditional acquisition of Angra Limited (“Angra”), an authorized payment institution (“API”) approved by the Financial Conduct Authority (“FCA”), Fast, secure and low-cost international currency and payment services from its UK base. The completion of the Angra acquisition is conditional on GST obtaining FCA approval for the change of control of Angra, a regulated entity.
The directors believe the Group is well positioned to take advantage of a variety of neobank business models and monetization strategies, including deposit / withdrawal fees, currency spreads and transaction fees. The Group will seek to obtain any other license that may become necessary by applicable law at a later time.
The funds raised through the placement will be mainly used to accelerate the implementation of the Group’s strategy, in particular to cover the expected sales and marketing costs, as well as the costs of developing and implementing the Wise MPay technology. .
Tone Goh, President of GSTechnologies, commented: “I am delighted to announce this successful fundraising and to welcome several new shareholders to GST. The placement will provide us with additional funds to accelerate the implementation of our fintech plans, particularly in collaboration with our collaboration partner Wise MPay, and as we seek to complete the acquisition of Angra. I look forward to providing further updates in due course as we seek to build a blockchain-enabled neo-banking business quickly. “
Admission and total voting rights
The Placement was made using the Company’s existing share authorizations. The Placement Shares will rank pari passu in all respects with the existing Shares. The Placement is conditional, among other things, on the absence of breach of obligations under the Placement Agreement concluded between Monecor (London) Ltd (trading as ETX capital) and the Company prior to the Admission, and the admission of the Placement Shares to trading upon the entry into force of the main market of the London Stock Exchange. An application will be made to the London Stock Exchange for the Placement Shares to be admitted to trading on the Main Market of the London Stock Exchange and on the Standard Segment of the Official List of the FCA. It is expected that the Admission will become effective and that transactions relating to the Placement Shares on the Main Market of the London Stock Exchange will begin on or around November 25, 2021.
On admission, GSTechnologies Limited (LON: GST) will have 1,484,982,002 shares outstanding, each with one voting right. There are no treasury shares. Consequently, the total number of shares and voting rights of the Company will be 1,484,982,002 and this figure may be used by Admission shareholders as a denominator for the calculations by which they will determine whether they are required to notify their interest or a change in their interest in the company under the FCA disclosure guidelines and transparency rules.