GSTechnologies Limited (LSE: GST), the fintech company, is pleased to provide an update on developments at the Company as it continues to make significant progress on developing a borderless neobanking platform providing next-generation digital money solutions, both organically and through complementary acquisitions.
Highlights
● The integration of the Bake Cryptocurrency Platform into the Group's digital asset arm, GS Fintech, has been successfully completed.
● Legally binding sale and purchase agreement signed to acquire 100% of Metapay SP. Z.O.O, a company incorporated in Poland which holds a Small Payment Institution licence. The acquisition, completion of which is subject to the necessary regulatory approvals, is in line with GST's strategy to enhance its footprint in domestic and cross border payment services across Europe.
● Trading within GS Fintech's digital asset business continue to perform in line with management's expectations. The Group remains focused on optimising efficiencies and rolling out new product features.
Bake Cryptocurrency Platform
On 2 January 2025 the Company announced the successful completion of the acquisition of the business and assets of Cake Pte Ltd and Cake DeFi UAB (together "CAKE"), including the Bake Cryptocurrency Platform ("Bake"). The acquisition was an important milestone for GST, accelerating the Company's digital asset strategy and positioning the Company for future growth in the rapidly evolving digital asset ecosystem.
The Company is pleased to confirm that the integration of the Bake Cryptocurrency Platform into the Group's digital asset arm, GS Fintech, has been successfully completed, in line with the expected timeframe announced at the time of the acquisition.
In addition, the Group's developmental roadmap for its digital asset business has been further progressed, including the consolidation of backend systems between Bake and the GS20 Exchange. The Company is also actively developing new product features on Bake to expand its service offerings for both retail and institutional clients. These developments are on track and will be rolled out in due course.
The Company has also appointed Response Legal to assist in securing a Markets in Crypto-Assets (MiCA) licence. The Company is confident in achieving a positive result, expected in the second half of 2025, further strengthening its position in the European digital asset market.
Trading operations within GS Fintech's digital asset business continue to perform in line with management's expectations. The Group remains focused on optimising efficiencies and rolling out new product features.
Acquisition of Metapay
The Group has entered into a legally binding sale and purchase agreement ("SPA") to acquire 100% of Metapay SP. Z.O.O ("Metapay"), a company incorporated in Poland. Metapay holds a Small Payment Institution ("SPI") licence and is registered under the Polish Act on Payment Services with MIP260/2025 status. The acquisition, completion of which is subject to the necessary regulatory approvals, is in line with GST's strategy to enhance its footprint in domestic and cross border payment services across Europe.
The required change of control process is currently underway and post-completion, it is the Company's intention that Metapay will be renamed as Angra Limited Z.O.O.
Further updates will be announced in due course as the process advances.
Strategic Focus on Integrated Financial Services
Following the successful integration of the Bake Cryptocurrency Platform into the Group's digital asset arm, GS Fintech, and a significant expansion of the Group's regulated financial services footprint across Europe, the GST Board has reviewed the Group's current strategic priorities.
On 29 November 2023, the Company entered into an option to purchase agreement to acquire 60% of the share capital of EasySend Ltd ("EasySend"), a Northern Ireland incorporated company operating a cross-border payments business. After careful consideration, the GST Board has determined that there is no urgent need to proceed with the acquisition of EasySend at this time. Therefore any completion of the acquisition of 60% of EasySend has been postponed and the GST Board will continue to monitor the appropriateness of EasySend joining the Group. This decision reflects the Company's commitment to enhancing shareholder value through disciplined capital allocation and operational efficiencies.
Additionally, in light of the SPA entered into to acquire Metapay, GST has made the strategic decision not to proceed with the previously considered acquisition of Bonfirepay SL in Spain.
Tone Goh, Chairman of GST, commented: "I am delighted that the integration of the Bake Cryptocurrency platform into the Group's digital asset arm, GS Fintech, has been successfully completed on time and in line with our expectations.
"Following this successful integration and a significant expansion of the Group's regulated financial services footprint across Europe, we have reviewed the Group's current strategic priorities. Metapay fits very well with these and is considered to be easier to integrate within the Group and to provide a more appropriate route to maximising value than other acquisitions we have recently been considering.
"GST is focused on maximising the value of its existing portfolio by strategically deploying resources towards growth and expansion within its current regulated financial services businesses, together with undertaking appropriate acquisitions as they are presented, and I am delighted with the progress we are making. I look forward to providing further updates on the Group's operations and strategic initiatives in due course."
Enquiries:
The Company
Tone Goh, Executive Chairman
+65 6444 2988
Financial Adviser
First Sentinel Corporate Finance
+44 (0)20 3855 5551
Brian Stockbridge / Gabrielle Cordeiro
Broker
CMC Markets
+44 (0)20 3003 8632
Douglas Crippen
Financial PR & Investor Relations
IFC Advisory Limited
Tim Metcalfe / Graham Herring / Florence Chandler
+44 20 (0) 3934 6630
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