Business
Sale of Avila House
Sale of Avila House.
About this update from Finseta Plc
[{"type":"text","content":"\n \n \n Certain information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 (\"MAR\") as applied in the United Kingdom. Upon publication of this Announcement, this information is now considered to be in the public domain.\n \n \n \n \n \n 23 December 2022\n \n \n \n \n \n \n \n \n Cornerstone FS Plc\n \n \n \n \n (\"Cornerstone\" or \"the Company\" or \"the Group\")\n \n \n \n \n \n \n \n \n \n Sale of Avila House\n \n \n \n \n Value realisation of non-core small e-money institution to generate c. £600k\n \n \n \n \n \n \n \n \n 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 that it has entered into a share purchase agreement (\"SPA\") for the sale of its non-core subsidiary, Avila House Ltd. (\"Avila\"), a registered small electronic money institution, to Aspire Commerce Ltd. (\"Aspire\"),\n trading as \n \n \n MulootMoney.com\n \n \n , the provider of payment accounts and lending services, for a consideration of £300,000 to be paid in cash on completion. The parties have also entered a software licencing agreement for Aspire to licence the Cornerstone platform for a period of 12 months, which will generate a minimum of £290,000 for the Company.\n \n \n \n \n \n The Company acquired Avila in October 2020 to gain a Small Electronic Money Institution. In August 2021, the Group's primary operating subsidiary, Cornerstone Payment Solutions Ltd. (formerly FXPress Payment Services Ltd.), wa\n s approved by the Financial Conduct Authority (\"FCA\") as an Authorised Electronic Money Institution, which supplanted the more limited licence the Group held through Avila. Accordingly, the Board believes that it is in the best interests of the Company to realise the value of this non-core asset through its disposal to Aspire, a non-competing entity, while also further monetising the underlying Cornerstone platform as part of the transaction. In addition, Aspire intends to utilise Cornerstone's services for any FX payments made on behalf of its clients. The proceeds from the sale of Avila will be used to strengthen the Company's existing cash resources.\n \n \n \n \n \n ...