Cornerstone FS PLC (AIM:CSFS) said it raised £1.085mln in a placing and from issuing a new convertible loan note.
The provider of cloud-based payment and currency services said it issued 13.23mln new shares at a price of 6.5p, discounted to the last close price of 9p, which raised roughly £0.86mln.
On top of that, the unsecured convertible loan note of £225,000 was issued to a placee with a term of two years and bearing no interest.
The company will apply to the Financial Conduct Authority to allow the placee to increase their shareholding to over 10%, at which time the loan note will automatically convert into new ordinary shares at an exercise price at the same level as the placing.
Chairman Elliott Mannis said the fundraising will provide additional working capital for the group.
“Moving forward we remain focused on executing upon our strategy and generating value for shareholders.”
Last month, the company reported that the trading momentum seen earlier in the year has continued, meaning first-half revenues will be in the order of £1.9mln, up 129% year-on-year. It said it had £280,000 of cash as of the date of approval of its results in June, as well as access to a £450,000 loan note facility
Cornerstone also confirmed in a statement late on Thursday that it has varied the share-based incentivisation payments to Robert O’Brien, who led the opening of its Dubai office last September and also took on the role of interim chief operating officer in March this year, as his performance has been ahead of expectations and reflecting the widening leadership role that he had taken on following the departure of previous chief executive Julian Wheatland.
Under the new arrangements, O'Brien will be entitled to £2.94mln of share incentives over the next three years, priced at 10p per share and subject to a 12-month lock-in, including a loan note with a value of £2mln, carrying a coupon of 6% and being repayable by the company on 31 July 2025.