REG - Vela Technologies - Update re. investment in Cornerstone FS plc

Vela TechnologiesAnnouncement

28/01/2022 12:00

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RNS Number : 0145A  Vela Technologies PLC  28 January 2022

 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
(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:

 

 Vela Technologies plc                                          Tel: +44 (0) 7421 728875

 Brent Fitzpatrick, Non-Executive Chairman

 James Normand, Executive Director

 Allenby Capital Limited (Nominated Adviser and Joint Broker)   Tel: +44 (0) 20 3328 5656
 Nick Athanas/Piers Shimwell

 Peterhouse Capital Limited (Joint Broker)                      Tel: +44 (0) 20 7469 0930
 Lucy Williams / Duncan Vasey / Eran Zucker

 

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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