Shares in GSTechnologies Ltd (LSE:GST) rose 16% in early trading after the company announced significant progress toward listing its cybersecurity subsidiary, Semnet, on the NASDAQ exchange.
A legally binding agreement with Trident Global Capital outlines steps for the listing, which values Semnet at $54 million. GSTechnologies holds a 67% stake, potentially worth $36 million if the listing proceeds.
Trident will cover $2 million in transaction expenses, with GST advancing 20% upfront. These costs will be reimbursed upon a successful listing. The agreement includes Trident’s selection of a U.S.-based finance adviser and broker, subject to GST’s approval.
Semnet, based in Singapore, specialises in machine-learning-driven cybersecurity, integrating Internet of Things (IoT) technology with automation to protect company assets without human intervention.
In early trading, the stock was up 0.2p at 1.45p.