28th Dec 2022 09:28
(Alliance News) - GSTechnologies Ltd announced on Wednesday it entered into an unsecured convertible loan facility to receive funding of up to USD1.6 million.
The financial technology company said the proceeds from the facility will strengthen its cash position, providing visibility through to the final quarter of 2023. Proceeds will also be used to assist the development and rollout of the firm's GS Money and its associated services.
The USD1.6 million loan facility can be drawn down in two instalments. The first instalment of USD800,000 has been drawn down and up to a further USD800,000 is available to be drawn down from June 26, subject to unspecified conditions being met.
Chair Tone Goh said: "2022 has been a transformational year for the Group and our GS Money ambitions, including the completion of the acquisitions of Angra and USB Glindala, the exit from EMS Wiring Systems, the soft launch of our GS20 Exchange, and the progression of our application for the company's stablecoins to be admitted to the FCA Regulatory Sandbox."
"With the proceeds of the loan facility we will be able to further accelerate our plans to build a blockchain enabled neobanking business."
Shares in GSTechnologies were down 11% at 0.85 pence on Wednesday morning in London.
By Heather Rydings, Alliance News senior economics reporter
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