Statement re Convertible Loan Facility

RNS Number : 6552S

Cornerstone FS PLC

17 November 2021

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN

17 November 2021

Cornerstone FS plc

("Cornerstone" or the "Company" or the "Group")

Statement re Convertible Loan Facility

Cornerstone FS plc (AIM: CSFS), entered into a loan facility of up to £100,000 with Mr Robert Lee on 25 March 2021, details of which are set out in the Company's admission document dated 26 March 2021 ("Admission Document"). The Company gave notice to drawdown the full amount of the loan and the due date for drawdown was 15 November 2021. The Company has been in discussions with Mr Lee about the timing of the drawdown and had offered a short extension, until close of business on 16 November 2021, for Mr Lee to either transfer the funds to the Company or agree to enter into a short extension, proposed by the Company, until the close of business on Friday 26 November 2021 to comply with the drawdown request.

As Mr Lee has neither paid the the money as required under the drawdown notice nor entered into the proposed extension, by the close of business on 16 November 2021, the Company considers Mr Lee to be in default and the Company is initiating proceedings to recover the funds.

The Company's strategy as stated in its Admission Document is on track and the anticipated drawdown of the loan from Mr Lee was part of that process. The breach of this particular loan facility will not have a material impact on the execution of that strategy.

On 4 November 2021 the Company released a trading update reporting "improved gross margins in H1" and that the Company "had been experiencing increased trading momentum during the first nine months of 2021".

Further announcements will be made as appropriate.

Enquiries

Cornerstone FS plc	[phone]
Julian Wheatland, Chief Executive Officer Judy Happe, Chief Financial Officer
SPARK Advisory Partners Limited (Nomad)	[phone]
Mark Brady
Peterhouse Capital Limited (Broker)	[phone]
Eran Zucker, Lucy Williams
Luther Pendragon (Financial PR)	[phone]
Harry Chathli, Claire Norbury

About Cornerstone FS plc

Cornerstone FS plc is a payments focused fintech business that makes managing currency simple for SMEs. It provides international payment, currency risk management and electronic account services using a proprietary cloud-based multi-currency payments platform. These services are delivered directly and via white label partners on a SaaS basis to SMEs that engage in international trade. Cornerstone also serves some high-net worth individual clients.

Headquartered in the City of London, UK and with an office in Dubai, Cornerstone is listed on AIM under the trading symbol 'CSFS'. For more information, please visit www.cornerstonefs.com.

 

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