TIDMGST
RNS Number : 8978S
GSTechnologies Ltd
19 November 2021
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This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 which forms part of UK
law by virtue of the European Union (Withdrawal) Act 2018
("MAR").
19 November 2021
GSTechnologies Limited
("GST" or the "Company" or the "Group")
Placing to raise GBP1.0 million
GSTechnologies Limited (LSE: GST), the fintech and information
technology solutions company, is pleased to announce that the
Company has raised gross proceeds of GBP1.0 million through a
placing (the "Placing") of 50,000,000 shares of no par value in the
Company ("Placing Shares") at a price of 2p per share. The placing
was arranged by ETX Capital.
The issue of the Placing Shares pursuant to the Placing is
within the Company's existing allotment authorities. The Placing
Shares equate to approximately 3.48% of the Company's currently
issued share capital.
Background to and reasons for the Placing
On 5 March 2021 the Company announced that it intended to expand
its focus into new higher-growth businesses based on blockchain
technology, particularly those applicable to the banking and
financial services sectors. The Company set up two new wholly owned
subsidiaries, GS Fintech Ltd in the UK and GS Fintech Pte Ltd in
Singapore to develop this strategy.
Under the Company's Collaboration Agreement with Wise MPay, as
announced on 28 May 2021, Wise MPay is providing the Company with
software and services to develop products and services based on
blockchain technology for the banking and financial services
sector, in line with the Group's goal of enabling its customers to
conduct peer-to-peer payments around the world quickly and
cheaply.
On 5 October 2021, to further accelerate the implementation of
the Group's strategy, the Company announced its conditional
acquisition of Angra Limited ("Angra"), a Financial Conduct
Authority ("FCA") approved Authorised Payment Institution ("API"),
conducting fast, secure and low-cost foreign exchange business and
payment services internationally from its base in the UK.
Completion of the acquisition of Angra is conditional on GST
obtaining approval from the FCA for the change of control of Angra,
a regulated entity.
The Directors believe the Group is well positioned to leverage a
variety of neobanking business models and monetization strategies,
including deposit/withdrawal fees, FX spread, and transaction fees.
The Group will seek to obtain any further licenses that may become
necessary by applicable law at a future point in time.
The funds raised from the Placing will be principally used to
accelerate the implementation of the Group's strategy, in
particular covering planned sales and marketing costs, and the
costs of further development and implementation of the Wise MPay
technology.
Tone Goh, Chairman of GST, commented : "I am delighted to
announce this successful fundraising and welcome a number of new
shareholders to GST. The Placing will provide additional funds for
us to accelerate the implementation of our fintech plans, in
particular in conjunction with our collaboration partner Wise MPay,
and as we look to complete the acquisition of Angra. I look forward
to providing further updates in due course as we seek to rapidly
build a blockchain enabled neobanking business."
Admission and Total Voting Rights
The Placing has been conducted utilising the Company's existing
share authorities. The Placing Shares will rank pari passu in all
respects with the existing shares. The Placing is conditional,
inter alia, on there being no breach of the obligations under the
Placing Agreement entered into between Monecor (London) Ltd
(trading as ETX capital) and the Company prior to Admission, and
admission of the Placing Shares to trading on the Main Market of
the London Stock Exchange ("Admission") becoming effective.
Application will be made to the London Stock Exchange for the
Placing Shares to be admitted to trading on the Main Market of the
London Stock Exchange and the Standard Segment of the FCA Official
List. It is expected that Admission will become effective and that
dealings in the Placing Shares on the Main Market of the London
Stock Exchange will commence on or around 25 November 2021.
On Admission, the Company will have 1,484,982,002 shares in
issue, each with one voting right. There are no shares held in
treasury. Therefore, the Company's total number of shares and
voting rights will be 1,484,982,002 and this figure may be used by
shareholders from Admission as the denominator for the calculations
by which they will determine if they are required to notify their
interest in, or a change to their interest in, the Company under
the FCA's Disclosure Guidance and Transparency Rules.
Enquiries:
The Company
Tone Goh, Executive Chairman +65 6444 2988
F inancial Adviser
+44 (0)20 3005
VSA Capital Limited 5000
Simon Barton / Pascal Wiese
Financial PR & Investor Relations
IFC Advisory Limited
Tim Metcalfe / Graham Herring / Florence +44 20 (0) 3934
Chandler 6630
For more information please see:
https://gstechnologies.co.uk/
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