REG - Fiinu PLC - Operational & Strategic Update

FiinuAnnouncement

12/07/2023 07:00

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RNS Number : 7098F  Fiinu PLC  12 July 2023

12 July 2023

 

Fiinu Plc

("Fiinu", the "Company" or the "Group")

 

Operational & Strategic Update

 

Fiinu, a fintech group, creator of the Plugin Overdraft®, provides an
operational and strategic update.

 

In the Company's RNS announcement on 28 April 2023, the Company outlined the
challenges it had been facing in respect of raising the full amount of funding
required to provide the exit capital for its subsidiary Fiinu 2 Limited
(formerly Fiinu Bank Limited) to be able to exit its mobilisation period and
commence operations without restrictions. As a result of these difficult
market conditions, it also stated that it had submitted an application to the
regulators to withdraw its banking licence with the aim of re-applying after a
short period of two to three months once exit funding had been secured. The
Company can confirm that the application by its subsidiary to withdraw its
restricted banking licence was accepted by the regulators and, due to the
continuing challenging market conditions and limited timescale, it has not yet
been able to secure the necessary exit funding to consider seeking
re-application.

 

Given the ongoing expense of maintaining and enhancing the development of the
operationally ready banking technology by Group companies, the Company has now
determined that the best course of action for its shareholders is for cost
reductions to be initiated at its subsidiaries, Fiinu 2 Limited and Fiinu
Holdings Limited, by various means including providing notice to reduce
staffing levels, the re-negotiation or termination of agreements with
suppliers.  By reducing costs and satisfying all outstanding debts and
liabilities of Fiinu 2 Limited and Fiinu Holdings Limited, the balance of
resources available to the Company and across the Group will be optimised as
the best way forward for shareholders is determined.

 

Unfortunately, due to the current circumstances the Company is unable to
utilise the funding options announced on 15 March 2023 with Dewscope Limited
and GEM Global Yield LLC SCS and GEM Yield Bahamas Limited.

 

As at 30 June 2023, the Group had available unaudited cash resources of
approximately £4.3m. This represents enough funds to enable the Group to
scale back its current operations in Fiinu 2 Limited and Fiinu Holdings
Limited and continue to meet its financial obligations as they fall due.

 

Whilst Fiinu 2 Limited proceeds with the controlled scaling back of its
operations, which may take a number of months, the Company will continue to
review all its options in respect of the business, including trying to source
the additional funding required for it to re-apply to the regulators to
re-start its banking licence application, but also other options, which may
include a change of strategy and/or a sale of the Group's technology assets.
A change of strategy will include the Company's other subsidiary Fiinu
Holdings Limited, which holds the intellectual property for the Group, and the
Company.

 

The Company will make further announcements on progress and other developments
as and when appropriate.

 Commenting on the proposals, Chris Sweeney, CEO of Fiinu, said:

 

"It is with deep regret that we have had to scale back operations in Fiinu 2
Limited and Fiinu Holdings Limited, following the successful completion of the
technology build of the Plugin Overdraft®. The current general capital, and
market specific conditions, are increasingly challenging for a business at
Fiinu's current stage of development.

 

"I would like to take the opportunity to thank our shareholders for their
support and colleagues for the considerable efforts in developing the
technology and the infrastructure to be in a position to launch the product
into the market.  I would also like to thank the PRA and FCA for their
continued support during these challenging times."

 

 

Market Abuse Regulation ('MAR') Disclosure

 

Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of the Market Abuse
Regulation (EU) No 596/2014 ('MAR'), which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, until the release of this announcement.

 

 

 

ENDS

 

 Enquiries:

 Fiinu plc                                                via Brazil London (press office for Fiinu)

 Chris Sweeney, Chief Executive Officer

 www.fiinu.com (http://www.fiinu.com)

 SPARK Advisory Partners Limited (Nomad)                  Tel: +44 (0) 203 368 3550

 Mark Brady / Adam Dawes

 SP Angel Corporate Finance LLP (Joint Broker)            Tel: +44 (0) 207 470 0470

 Matthew Johnson / Charlie Bouverat (Corporate Finance)

 Abigail Wayne / Rob Rees (Corporate Broking)

 Panmure Gordon (UK) Limited (Joint Broker)               Tel: +44 (0)207 886 2500

 Stephen Jones / Atholl Tweedie (Corporate Finance)

 Hugh Rich (Corporate Broking)

 Brazil London (press office for Fiinu)                   Tel: +44 (0) 207 785 7383

 Joshua Van Raalte / Christine Webb / Jamie Lester

 

 

About Fiinu

 

Fiinu, founded in 2017, is a fintech group, that developed the Plugin
Overdraft® which is an unbundled overdraft solution that allows customers to
have an overdraft without changing their existing bank. The underlying bank
Independent Overdraft® technology platform is bank agnostic, that therefore
enables it to serve all other banks' customers. Open Banking allows Fiinu's
Plugin Overdraft® to attach ("plugin") to the customer's existing primary
bank account, no matter which bank they may use. Fiinu's vision is built
around Open Banking, and it believes that it increases competition and
innovation in UK banking.

 

For more information, please visit www.fiinu.com (http://www.fiinu.com)

 

 

 

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