Fintech and IT solutions company GSTechnologies (LON: GST) has seen its shares fall Friday after it raised £1 million through a placing of 50 million shares at 2p per share.
The shares equate to approximately 3.48% of the company’s currently issued share capital. The placing was arranged by ETX Capital.
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The funds raised will help the company expand into other higher-growth businesses based on blockchain technology.
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An agreement with Wise MPay is providing the company with the services and technology to develop products and services based on blockchain technology for the banking and financial services sector.
GST told investors that the funds raised will primarily be used to accelerate the implementation of its strategy, in particular covering planned sales and marketing costs and the costs of further development and implementation of the Wise MPay technology.
Tone Goh, Chairman of GST, said: “I am delighted to announce this successful fundraising and welcome a number of new shareholders to GST. The Placing will provide additional funds for us to accelerate the implementation of our fintech plans, in particular in conjunction with our collaboration partner Wise MPay, and as we look to complete the acquisition of Angra.”
GST shares have fallen 10% to 2.06p in reaction to the news.
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