2nd Sep 2022 10:02
Cornerstone FS PLC - cloud-based payment provider - Agrees to buy specialist FX and treasury consultancy Pangea FX Ltd for a total of up to GBP200,000. Says GBP25,000 will be paid in cash on completion and up to GBP175,000 will be paid in loan notes. "The group will...benefit from the migration of Pangea FX's existing client base to the Cornerstone platform as well as certain operational synergies such as from closing the Pangea FX office and relocating the employees to the group's main office," Cornerstone explains.
For financial 2021, Pangea which focusses on helping its clients control the impact of currency volatility on their business, reported revenue of GBP169,404 and a pretax profit of GBP58,325.
"As we stated at the time of our fundraising, our intention was to invest in our sales team to drive growth and we believe this is the optimum means of achieving that as we also gain a book of business in the short term, which we expect to be significantly expanded going forward," Chair Gareth Edwards says.
Early last month, Cornerstone FS raised a total of GBP1.1 million through a share placing and the issue of a convertible loan note. The company raised GBP860,000 through the placing of 13.2 million shares at price of 6.5 pence per share, and a further GBP225,000 through the issue of an unsecured convertible loan note.
Current stock price: 8.95p, up 5.3% in London on Friday
12-month change: down 74%
By Xindi Wei; [email protected]
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