Gibraltar-based technology group Valereum has agreed to acquire GSX Group, a leading Gibraltar-based fintech company, in a bid it expand its capabilities in tokenised digital markets.
GSX will receive five million shares in Valereum and 10 million warrants exercisable at 1p by December 2026 in exchange for the GATENet digital financial markets infrastructure (DFMIM) intellectual property.
If approved by the GSX Group shareholders, the takeover will strategically position Valereum as a leader in tokenisation, which is set to grow considerably over the next few years as regulatory frameworks evolve favourably.
Valereum will also adopt GATE Token (the utility token of GATENet) as the sole token within the Valereum ecosystem, while the GSX brand will be discontinued as part of an orderly dissolution of the GSX Group.
Following the acquisition, Nick Cowan, former chief executive and founder of the Gibraltar Stock Exchange and GSX Group, will become Valereum’s chief executive.
Concurrently, Patrick L Young has stepped down as Valereum’s chief executive with immediate effect.
Simon Brickles, current group chairman of the GSX Group, and Gary Cottle, a veteran in finance services, will join the board as non-executive directors.
Valereum's chairman James Formolli, expressed enthusiasm about the deal, stating: “We are excited about the synergies this fantastic deal brings, the opportunities it creates for sustained success, longevity and new potential market offerings.
“The value and experience Nick, Simon and Gary will bring will be invaluable as we look to grow, revolutionise the technology markets, focus on innovative solutions and look to position ourselves as a key player at the forefront of industry advancements.”
Cowan added: "We believe that tokenisation is set to be a huge market over the next decade and will play a key role in delivering efficiencies in capital markets.
“We have allocated considerable resources to building our GATENet digital infrastructure over the last few years and we look forward to delivering on our vision as part of Valereum."