Cloud-Based FX Provider, Cornerstone FS plc, Raises £2.7m in Public Listing
- Payments , Cloud
- 06.04.2021 03:38 pm
Cornerstone FS plc, the cloud-based provider of international payment, currency risk management and electronic account services to SMEs, announces that admission of its entire issued and to be issued share capital to trading on the AIM market of the London Stock Exchange (“Admission”) will become effective and dealings will commence at 8.00 a.m. today under the ticker “CSFS”. The Company’s ISIN is GB00BNG7CD28 and its SEDOL is BNG7CD2.
Cornerstone has successfully placed 3,664,648 new ordinary shares (“Placing”) at a price of 61 pence per ordinary share. The Company has raised gross proceeds of £2.69 million comprising £2.24 million via the Placing and £450,000 via Convertible Loan Note Facilities. The shares sold under the Placing represent approximately 18 per cent of the Company’s issued share capital. On Admission, the market capitalisation of the Company will be approximately £12.4 million.
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.
Use of Proceeds
The funds raised will enable Cornerstone to pursue a combination of acquisitive and organic growth, building on the capabilities of the Company’s technology platform. The ability to use the Company’s shares as acquisition currency is a significant part of its growth strategy. Additionally, funds will also be used to pay the costs of the IPO and develop a broader range of products and services.
Julian Wheatland, Chief Executive Officer of Cornerstone, said: "We are pleased to announce our successful placing and admission to AIM. It is an important milestone and a key element of our strategy. We already have more than 700 customers who give us a strong financial foundation and we plan to build on that to fuel value creation.
“The ‘non-financial institutions’ segment of the market is highly fragmented with many smaller players struggling to cope with the ever-increasing regulatory demands and the costs of acquiring up-to-date technology. At the same time, SME customers are seeking better quality and more bespoke services than are provided by the major financial institutions that dominate the FX market. This provides us with a clear opportunity for our offering, which, with our strong board, excellent management team and highly scalable platform, we are well-placed to deliver.
“We'd really like to thank our current investors and welcome new ones as we embark on the next phase of our development.”