Cloud-based FX provider Cornerstone FS plc raises £2.7m in public listing


Cornerstone FS plc, the cloud-based provider of international payment, currency risk management and electronic account services to SMEs, announces the admission of its entire issued capital to trading on the AIM market of the London Stock Exchange.

Cornerstone has successfully placed 3,664,648 new ordinary shares at a price of 61 pence per ordinary share. The company has raised gross proceeds of £2.69m comprising £2.24m via the Placing and £450,000 via Convertible Loan Note Facilities.

The shares sold under the Placing represent approximately 18% of the Company’s issued share capital. On Admission, the market capitalisation of the Company will be approximately £12.4m.

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.”

SPARK Advisory Partners Limited is acting as Nominated Adviser and Peterhouse Capital Limited and Pello Capital Limited are acting as Joint Brokers in relation to the Admission.