Druces’ Capital Markets team has advised GSTechnologies Ltd, the fintech and information technology solutions company, on a placing to raise gross proceeds of £1m through the allotment and issue of 50,000,000 shares of no par value, at a price of 2p per share.
On 5 March 2021 the company announced that it intended to expand its focus into new higher-growth businesses, based on blockchain technology, particularly those applicable to the banking and financial services sectors.
Under the company’s Collaboration Agreement with Wise MPay (announced on 28 May 2021) Wise MPay is providing software and services to enable GSTechnologies to develop products and services based on blockchain technology. This is in line with the company’s goal of enabling its customers, in particular in the banking and financial services sector, to conduct peer-to-peer payments around the world quickly and cheaply. The funds raised from the placing will be principally used to accelerate the implementation of this strategy, in particular covering sales and marketing costs and the costs of further development and implementation of the Wise MPay technology.
David Smith and Jack Dervyn led Druces’ Capital Markets team on this transaction and Jack commented: “This fundraising had to be carried out on an extremely condensed timeline. We were pleased to be able to assist and deliver on time for GST. It was a great effort from all those involved, and we look forward to seeing how the funds raised will help to accelerate the company’s strategy”.
Tone Goh, Chairman of GST, observed: “Jack and David helped us to move quickly and efficiently to take advantage of this opportunity. I was very impressed with how they could guide us through the process to close the placing. The timeline to completion was exceptionally tight and Druces delivered”.
Further details of the placing can be found at:
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