Business
Sale of Non-Trading Subsidiary
Sale of Non-Trading Subsidiary.
About this update from Finseta Plc
[{"type":"text","content":"\n\nCertain 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 \n20 September 2023\n \nCornerstone FS plc\n(\"Cornerstone\" or the \"Company\" or the \"Group\")\n \nSale of Non-Trading Subsidiary\nValue realisation from non-core API licence to generate £150k\n \nCornerstone FS plc (AIM: CSFS), a foreign exchange and payments solutions company offering multi-currency accounts to businesses and individuals through its proprietary technology platform, is pleased to announce that it has entered into a share purchase agreement (\"SPA\") for the sale of its non-trading subsidiary, Capital Currencies Ltd (\"Capital Currencies\"), which is authorised and regulated by the Financial Conduct Authority (\"FCA\") as an authorised payment institution (\"API\"), for a consideration of £150,000 to be paid in cash on completion.\n \nThe Company acquired Capital Currencies in February 2022 to accelerate the Group's growth and its transition to a direct customer base as Capital Currencies' focus was on providing high-level currency exchange and international payments services directly to larger UK-based SMEs. All of Capital Currencies' customers were subsequently transferred to the Cornerstone technology platform and its staff became employees of the Group following the acquisition, such that Capital Currencies has not been a trading entity since November 2022. In addition, the Group's primary operating subsidiary, Cornerstone Payment Solutions Ltd., is authorised and regulated by the FCA as an authorised electronic money institution, which gives the Group more extensive regulatory permissions than the more limited API licence held through Capital Currencies.\n \nAccordingly, 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 a non-competing entity. The proceeds from the sale of Capital Currencies will be used to strengthen the Company's existing cash resources.\n \nCompletion of the SPA, and receipt of the £150,000 cash proceeds, is conditional upon receipt of regula...