Update re. investment in Cornerstone FS plc
28 January 2022
Vela Technologies plc
("Vela")
Update re. investment in Cornerstone FS plc
The Board of Vela (AIM: VELA) notes the announcement made on 27 January 2022 by Cornerstone FS plc ("Cornerstone") regarding, inter alia, the results of the proposed placing (the "Placing") and subscription (the "Subscription") that was originally announced by Cornerstone on 26 January 2022. The Placing and Subscription has conditionally raised £0.87 million for Cornerstone at 26.5 pence per share.
Subject to customary conditions, Cornerstone is also due to acquire Capital Currencies Limited (the "Acquisition") which was announced on 26 January 2022. Part of the gross proceeds of the Placing and Subscription will be used to fund the initial cash consideration and integration costs of the Acquisition.
Vela holds 645,902 shares in Cornerstone which will, upon completion of the Placing and Subscription, represent 2.74% of Cornerstone's enlarged share capital. Cornerstone 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.
An extract from the announcement issued by Cornerstone yesterday is set out below. The full announcement can be found here: https://www.londonstockexchange.com/news-article/CSFS/result-of-placing-and-total-voting-rights/15305483
James Normand, Executive Director of Vela, remarks:
'Vela is pleased to see that Cornerstone has been able to augment its cash reserves so that it can continue to implement the business plan set out in its admission document published last April. Vela has noted the progress made by Cornerstone since its IPO and remains persuaded by its 'buy and build' strategy.'
For further information, please contact:
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Vela Technologies plc Brent Fitzpatrick, Non-Executive Chairman James Normand, Executive Director
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Tel: +44 (0) 7421 728875 |
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Allenby Capital Limited (Nominated Adviser and Joint Broker) |
Tel: +44 (0) 20 3328 5656 |
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Nick Athanas/Piers Shimwell
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Peterhouse Capital Limited (Joint Broker) |
Tel: +44 (0) 20 7469 0930 |
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Lucy Williams / Duncan Vasey / Eran Zucker
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About Vela Technologies
Vela Technologies plc (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 will also invest in already-listed companies where valuations offer additional opportunities.
Extract
Cornerstone FS plc
("Cornerstone" or the "Company" or the "Group")
Result of Placing and Subscription and Total Voting Rights
Cornerstone FS plc (AIM: CSFS), the cloud-based provider of international payment, currency risk management and electronic account services to SMEs, is pleased to announce the results of the placing (the "Placing") and the subscription (the "Subscription") announced on 26 January 2022.
A total of 3,196,242 new ordinary shares of one penny each in the capital of the Company (the "Placing Shares") were placed with institutional and other investors at a price of 26.5pence per Placing Share (the "Placing Price"), raising gross proceeds of £847,004.
In addition, certain directors of the Company have subscribed for a total of 86,792 new ordinary shares of one penny each in the capital of the Company (the "Subscription Shares") at the Placing Price, raising gross proceeds of £23,000.
The Placing Shares and Subscription Shares being issued represent, in aggregate, approximately 16 per cent. of Cornerstone's issued ordinary share capital immediately prior to the Placing and Subscription.
Application will be made for the Placing Shares and the Subscription Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will take place on or around 8.00 a.m. on 1 February 2022. The Placing Shares and the Subscription Shares, which will rank pari passu with the existing ordinary shares, will be issued under the Company's share allotment authority and shareholders pre-emption disapplication granted at its Annual General Meeting held on 30 June 2021.
Acquisition of Capital Currencies
Part of the gross proceeds of the Placing and Subscription will be used to fund the initial cash consideration and integration costs of Cornerstone's acquisition of Capital Currencies Limited (the "Acquisition"). Completion of the Acquisition is subject to customary conditions and is expected to take place at Admission on 1 February 2022.
Further information on the Acquisition is contained in the Company's announcement dated 26 January 2022.
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