Cornerstone Brands is pleased to announce that shareholders have approved the intended acquisition of FXPress Payments Services Ltd, a provider of advanced payment systems as Platform as a Service to SMEs (“FXPress”).
The completion of the acquisition is subject to FCA authorisation.
Highlights of the transaction agreed at General Meeting
• All resolutions passed with over 99% of shares cast in favour of the proposed actions
• Cornerstone to acquire the entire issued share capital of FXPress via the issue of 1,401,275,638 new A Ordinary shares in the Company
• Following the completion of the acquisition, the existing business of Cornerstone Brands will be sold to Oliver Bridge and Spencer Hill
• Benefits to the existing shareholders of Cornerstone include receiving funds should there be a sale of the Cornerstone Brands business in the next two and a half years
• Following completion there will be a rationalisation of the capital structure with all existing shares of Cornerstone (including non-voting B shares) to be converted into one class of new Ordinary shares which will rank pari passu
Following the completion of the acquisition of FXPress and disposal of Cornerstone’s current business, the Company’s strategy is to build a significant business in the provision of international payment services for SMEs via organic and inorganic growth. The Directors of the Company believe that there are meaningful opportunities to build the business by developing a broader range of products and services based around a portfolio of technology-enabled international payment services, including allowing customers to maintain their own multi-currency electronic payment accounts. Further steps to grow the business will include a focus on attracting larger SME customers and growing in-house sales capacity.
The Directors of Cornerstone are delighted to have received the overwhelming support of shareholders for their plans to secure the future of the business, thereby creating an opportunity to deliver value. The Directors are excited by FXPress’ strategy to develop its business and be a true disrupter in the market by enabling SMEs to make efficiency gains in the way they conduct international payments. The global payments landscape is in a state of fundamental transformation, with immense opportunities for technology-led businesses such as FXPress. The Directors look forward to seeing them further their growth plans.