(Alliance News) - GSTechnologies Ltd on Friday said it intend to raise GBP1.0 million through a share placing, which will go towards accelerating its strategy of expanding into new businesses based on blockchain technology.
The Milton Keynes, England-based fintech firm said it will issue 50.0 million shares at a price of 2.0 pence each via a placing arranged by ETX Capital.
The placing price reflects a 13% discount to the closing price Thursday of 2.30 pence.
Shares in GSTechnologies were 10% lower at 2.07 pence on Friday morning in London.
Proceeds will go towards sales, marketing and development of blockchain products and services based on software provided by collaboration partner Wise MPay.
Additionally, in early October, GSTechnologies agreed to buy London-based foreign exchange and payment services provider Angra Ltd for GBP800,000.
"I am delighted to announce this successful fundraising and welcome a number of new shareholders to GST. The placing will provide additional funds for us to accelerate the implementation of our fintech plans, in particular in conjunction with our collaboration partner Wise MPay, and as we look to complete the acquisition of Angra," said Chair Tone Goh.
Once the placing is completed, GSTechnologies will have 1.48 billion shares issued overall.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.