GSTechnologies Ltd (LSE:GST) shares traded up, gaining 14.5%, changing hands at 0.46p in Wednesday's early deals, after it secured a US$10 million unsecured term loan facility to increase its financial headroom as the fintech company pursues growth initiatives and potential acquisitions.
The facility has been agreed with Clarivan Group Kommanditbolag, a Sweden-incorporated lender, and is available in two US$5 million tranches. The first can be drawn between 1 July and 31 July 2026, with the second available from 1 August to 30 August 2026.
GSTechnologies chair Tone Goh said the financing gives GST “access to significant additional capital on attractive terms”, adding that it strengthens the company’s ability to pursue acquisition opportunities while supporting its existing businesses.
The company noted that the lender may elect to receive repayment of outstanding principal and accrued interest through a new class of non-voting preference shares, subject to legal, regulatory and shareholder approvals, and GST may also prepay all or part of the facility in cash, ordinary shares and/or preference shares.
Interest will accrue on drawn amounts at 5% per year and is payable monthly in arrears. The facility matures on 31 July 2030, unless prepaid, redeemed or converted under its terms.
