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FairFx Group PLC’s £5mln investment from Crystal Amber gets go-ahead

Published: 07:45 11 Mar 2016 GMT

FOREIGN_EXCHNAGE
FairFx specialises in multi-currency payments and travel money...

FairFx Group PLC  (LON:FXX), the online multi-currency payments and travel money specialist, said activist investment fund Crystal Amber is set to pump £5mln into the group after the FCA approved the move.

It is part of a previously announced placing by FairFx of £5.25mln at 20p a share, with Crystal Amber making up the rump of the investment.

It will hold around 24.24% of the enlarged issued share capital of the group following the issue and the funds will be used to accelerate the group's marketing efforts.

Crystal Amber could also increase the stake to 29.38% if it exercises a warrant allowing it to subscribe for 7.5mln shares at 27p each.

In a nutshell, FairFx has developed a cloud-based peer-to-peer platform that enables personal and business customers to make low-cost multi-currency payments across a range of foreign  exchange products via one system. One use is for travel money.

This week Richard Bernstein, Investment Adviser to Crystal Amber said: "We're delighted to conditionally acquire a significant holding in FairFX, an online business with more than 500,000 customers utilising its peer-to-peer payments platform.

"We've identified a hugely scalable business model and are looking forward to assisting FairFX to capitalise on its potential."

FairFx said Crystal's strategic investment would significantly accelerate growth plans and allow it to roll out the platform to other locations.

Specifically, marketing spend for all retail customers across TV and digital platforms will be bolstered, sales effort to corporates for the FairFX platform will be expanded and I.T. resources will be added.

For 2015, turnover increased 32% to around £625 mln and during that year 103,338 new customers were added across all its product segments (up 20% on 2014), taking its total number of customers to 508,048, it revealed.

FairFx shares closed yesterday at 31p each.

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