Vela Technologies PLC Update re. investment in Cornerstone FS plc (5789U)
07 April 2021 - 2:55AM
UK Regulatory
TIDMVELA
RNS Number : 5789U
Vela Technologies PLC
06 April 2021
Vela Technologies plc
("Vela")
Cornerstone FS plc - Admission to trading on AIM and Further
Investment
The Board of Vela (AIM: VELA) is pleased to note that the shares
in its investee company, Cornerstone FS plc ("Cornerstone"), have
today been admitted to trading on AIM.
In December 2020 Vela invested GBP200,000 in Cornerstone in a
private placing by subscribing for 400,000 new ordinary shares of 1
penny each at a price of 50 pence per ordinary share, thus valuing
Cornerstone at GBP8.3 million. Additionally, Vela received 400,000
warrants with a 5-year term, each warrant carrying the right to
subscribe for one Cornerstone share at a price of 50 pence.
As part of its Admission to AIM, Cornerstone has raised GBP2.24
million (before expenses) through a placing of 3,664,648 new
ordinary shares at a price of 61 pence per ordinary share. Vela has
invested a further GBP150,000 through a subscription for 245,902
new ordinary shares in Cornerstone. Upon admission to AIM the
market capitalisation of Cornerstone was approximately GBP12.4
million. Vela's aggregate shareholding in Cornerstone represents
approximately 3.2% of its issued share capital.
About Cornerstone
Cornerstone's strategy is to build a significant business in the
provision of payment services, foreign exchange and currency risk
management. The Company makes it easy for SMEs to handle
international payments and currency. The Company's primary customer
base is small and medium sized enterprises, generally businesses
with fewer than 250 employees. It also provides services for some
HNWIs, some of whom are owners or directors of SME customers. The
Company currently has over 740 clients.
Cornerstone has developed and built, in-house, its own
proprietary cloud-based software platform. The platform can be
fully customised to allow third parties and marketing partners to
integrate it into their own businesses and websites presenting it
as their own branded platform. This platform is currently provided,
on a white label Saas basis, to approximately 26 third-party client
aggregators.
As previously announced, on 9 September 2020, Cornerstone
acquired FXPress Payment Services Limited ("FXPress"). For the 9
months ended 31 December 2019, FXPress generated revenue of GBP1.24
million and recorded a net loss of GBP0.08 million. Cornerstone's
unaudited pro forma net assets as at 30 June 2020 were GBP2.71
million.
Further details on Cornerstone are contained in its admission
document which is available to download from Cornerstone's website
at: www.cornerstonefs.com
Vela Technologies plc Tel: +44 (0) 7421
Brent Fitzpatrick, Non-Executive Chairman 728875
James Normand, Executive Director
Allenby Capital Limited (Nominated Adviser Tel: +44 (0) 20
and Joint Broker) 3328 5656
Nick Athanas / Nick Naylor
Peterhouse Capital Limited (Joint Broker) Tel: +44 (0) 20
Lucy Williams / Duncan Vasey / Eran Zucker 7469 0930
For further information, please contact:
About Vela Technologies
Vela Technologies (AIM: VELA) is an investing company focused on
early stage and pre-IPO long term disruptive technology
investments. Vela's investee companies have either developed ways
of utilising technology or are developing technology with a view to
disrupting the businesses or sector in which they operate. Vela
Technologies also invests in listed companies where valuations may
offer additional opportunities.
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