GSTechnologies Ltd US$1.6 million Convertible Loan Facility (9686K)
December 28 2022 - 2:00AM
UK Regulatory
TIDMGST
RNS Number : 9686K
GSTechnologies Ltd
28 December 2022
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 which forms part of UK
law by virtue of the European Union (Withdrawal) Act 2018
("MAR").
28 December 2022
GSTechnologies Limited
("GST" or the "Company" or the "Group")
US$1.6 million Convertible Loan Facility
GSTechnologies Limited (LSE: GST), the fintech company, is
pleased to announce that the Company has entered into an unsecured
convertible loan facility to receive funding of up to US$1.6
million (the "Loan Facility") with an institutional investor
introduced by OvalX, the Company's broker, as further detailed
below.
The proceeds from the Loan Facility will further strengthen the
Company's cash position, providing funding visibility through to Q4
2023, and will be utilised to assist the development and rollout of
the Group's GS Money and associated services as well as for general
working capital purposes.
Further information on the Convertible Loan
The US$1.6 million Loan Facility is unsecured and can be drawn
down in two instalments. The first instalment of US$800,000 has
been drawn down and up to a further US$800,000 is available to be
drawn down from 26 June 2023, subject to certain conditions being
met. The Loan Facility has a redemption date of 28 December 2023
(the "Redemption Date"). Interest equating to ten per cent. of the
principal amount per annum shall accrue until repayment or
conversion of the Loan Facility and be payable in cash quarterly in
arrears.
The amounts drawn down under the Loan Facility and the
associated accrued interest is convertible into new ordinary shares
of no-par value in the capital of the Company ("Ordinary Shares")
at any time up until the Redemption Date at the election of the
Loan Facility provider via service of a conversion notice.
Alternatively, the Company may repay the Loan Facility in cash at
105% of the principal amount drawn down together with applicable
interest, before the Redemption Date, at the election of the
Company by way of the Company giving ten business days' notice in
writing.
The conversion price per new Ordinary Share shall be determined
as the lower of: (i) 140 per cent. of the closing bid price of the
Company's shares on the London Stock Exchange one business day
prior to the relevant draw down date; and (ii) 85% of the
arithmetic average of the daily volume-weighted average price of an
Ordinary Share during any five of the fifteen business days prior
to service or deemed service of a conversion notice, as selected by
the Loan Facility provider.
If the Loan Facility is not repaid or converted prior to the
Redemption Date, the Company shall pay the principal amount of the
Loan Facility together with the associated accrued interest on the
Redemption Date.
The Loan Facility is subject to certain customary events of
default. If the Loan Facility becomes due and payable following an
event of default, it will be repayable immediately at 120% of the
outstanding principal amount.
Tone Goh, Chairman of GST, commented : "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."
Enquiries:
The Company
Tone Goh, Executive Chairman +65 6444 2988
Financial Adviser
VSA Capital Limited +44 (0)20 3005 5000
Simon Barton / Pascal Wiese
Broker
OvalX +44 (0)20 7392 1400
Tom Curran / Thomas Smith
Financial PR & Investor Relations
IFC Advisory Limited +44 20 (0) 3934 6630
Tim Metcalfe / Graham Herring / Florence gst@investor-focus.co.uk
Chandler
For more information please see:
https://gstechnologies.co.uk/
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