Vela Technologies PLC Update re. investment in Cornerstone FS plc (5789U)

TIDMVELA

RNS Number : 5789U

Vela Technologies PLC

06 April 2021

Vela Technologies plc

("Vela")

Cornerstone FS plc - Admission to trading on AIM and Further Investment

The Board of Vela (AIM: VELA) is pleased to note that the shares in its investee company, Cornerstone FS plc ("Cornerstone"), have today been admitted to trading on AIM.

In December 2020 Vela invested GBP200,000 in Cornerstone in a private placing by subscribing for 400,000 new ordinary shares of 1 penny each at a price of 50 pence per ordinary share, thus valuing Cornerstone at GBP8.3 million. Additionally, Vela received 400,000 warrants with a 5-year term, each warrant carrying the right to subscribe for one Cornerstone share at a price of 50 pence.

As part of its Admission to AIM, Cornerstone has raised GBP2.24 million (before expenses) through a placing of 3,664,648 new ordinary shares at a price of 61 pence per ordinary share. Vela has invested a further GBP150,000 through a subscription for 245,902 new ordinary shares in Cornerstone. Upon admission to AIM the market capitalisation of Cornerstone was approximately GBP12.4 million. Vela's aggregate shareholding in Cornerstone represents approximately 3.2% of its issued share capital.

About Cornerstone

Cornerstone's strategy is to build a significant business in the provision of payment services, foreign exchange and currency risk management. The Company makes it easy for SMEs to handle international payments and currency. The Company's primary customer base is small and medium sized enterprises, generally businesses with fewer than 250 employees. It also provides services for some HNWIs, some of whom are owners or directors of SME customers. The Company currently has over 740 clients.

Cornerstone has developed and built, in-house, its own proprietary cloud-based software platform. The platform can be fully customised to allow third parties and marketing partners to integrate it into their own businesses and websites presenting it as their own branded platform. This platform is currently provided, on a white label Saas basis, to approximately 26 third-party client aggregators.

As previously announced, on 9 September 2020, Cornerstone acquired FXPress Payment Services Limited ("FXPress"). For the 9 months ended 31 December 2019, FXPress generated revenue of GBP1.24 million and recorded a net loss of GBP0.08 million. Cornerstone's unaudited pro forma net assets as at 30 June 2020 were GBP2.71 million.

Further details on Cornerstone are contained in its admission document which is available to download from Cornerstone's website at: www.cornerstonefs.com

 
 Vela Technologies plc                         Tel: [phone] 
  Brent Fitzpatrick, Non-Executive Chairman               728875 
  James Normand, Executive Director 
 Allenby Capital Limited (Nominated Adviser      Tel: +44 (0) 20 
  and Joint Broker)                                    3328 5656 
  Nick Athanas / Nick Naylor 
 Peterhouse Capital Limited (Joint Broker)       Tel: +44 (0) 20 
  Lucy Williams / Duncan Vasey / Eran Zucker           7469 0930 
 

For further information, please contact:

About Vela Technologies

Vela Technologies (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 also invests in listed companies where valuations may offer additional opportunities.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCIFMFTMTAMBBB

(END) Dow Jones Newswires

April 06, 2021 12:55 ET (16:55 GMT)