The GSTechnologies Ltd (LON: GST) share price rose 12.8% after revealing that it had received a conversion notice from the Loan Facility provider to convert the remaining US$285,000 principal amount of the Loan Facility and the associated interest of US$28,500 (10%), into new GST ordinary shares.
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Investors cheered the news that lifts the burden of repaying the loan facility principal amount and associated interest rate from GSTechnologies Ltd. The company could then use the money that could have been used to repay the loan facility for other purposes, such as advancing its various projects.
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However, the markets ignored the conversion price of 0.312936 pence per new ordinary share, representing a discount to GST’s closing share price on Monday. The financial relief the fintech company got from the conversion far outweighed the discounted share price offered to the loan facility issuer.
GSTechnologies issued 81,189,907 conversion shares to the loan facility issuer and has written to the London Stock Exchange to have the shares admitted for trading on the exchange. Today’s announcement comes after GSTechnologies cancelled the loan facility announced on 28 December 2022 on 29 March 2023.
The fintech company revealed it had a robust financial situation and did not need to draw down the remaining US$800,000. Last year, the company had already drawn down the initial US$800,000 from the US$1.6 million convertible loan facility.
GSTehnologies had an outstanding loan balance of US$285,000 in principal and the 10% (US$28,500) interest payment, which the loan facility provider had converted into ordinary shares today.
The fintech company has filed a stablecoin application for admission to the UK Financial Conduct Authority (FCA) Regulatory Sandbox. GST’s UK-incorporated blockchain-focused subsidiary GS Fintech Ltd (GS Fintech) applied for the license. The firm was guided by Pinsent Masons LLP, a legal advisory firm, on the application process.
Investors are waiting for the outcome of the UK regulatory sandbox scheme, which shall determine whether GSTechnologies can launch its much-awaited stablecoin.
*This is not investment advice.
GSTechnologies share price.
The GSTechnologies share price rose 12.82% to trade at 0.44p, from Monday’s closing price of 0.39p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.