LONDON, UK: Cornerstone FS Plc has entered right into a share buy settlement (SPA) for the sale of its non-core subsidiary, Avila House Ltd., a registered small digital money institution, to Aspire Commerce Ltd. for a consideration of £300,000 to be paid in money on completion.
Avila House Limited is an digital money establishment focused on multi-currency e-wallets. Avila House Limited offers e-money accounts to freelancers, companies, pure persons. In 2021 Avila House Limited had total assets of 198,439.00 GBP, Avila House Limited generated net income of 2,418.00 GBP. Incorporated within the United Kingdom, Avila House Limited is authorized and controlled by the Financial Conduct Authority.
The events have additionally entered a software program licencing settlement for Aspire to licence the Cornerstone platform for a interval of 12 months, which will generate a minimal of £290,000 for the Company.
Cornerstone FS Plc is the cloud-based supplier of worldwide payment, currency risk administration and digital account services to SMEs.
The Company acquired Avila in October 2020 to gain a Small Electronic Money Institution. In August 2021, the Group’s primary working subsidiary, Cornerstone Payment Solutions Ltd. (formerly FXPress Payment Services Ltd.), was approved by the Financial Conduct Authority (“FCA”) as an Authorised Electronic Money Institution, which supplanted the extra restricted licence the Group held through Avila.
Accordingly, the Board believes that it’s within the best pursuits of the Company to realise the worth of this non-core asset through its disposal to Aspire, a non-competing entity, whereas additionally additional monetising the underlying Cornerstone platform as a half of the transaction.
In addition, Aspire intends to utilise Cornerstone’s services for any FX funds made on behalf of its clients. The proceeds from the sale of Avila will be used to strengthen the Company’s existing money resources.
For the monetary year ended 31 December 2021, Avila generated income of £197,996 and revenue of £2,418. All of the income and the bulk of the prices incurred by Avila were intra-Group related. In addition to the consideration and licensing fees, the disposal of Avila will be minimally beneficial to the outcomes of the consolidated Cornerstone Group due to a small quantity of standalone entity prices that will be saved following the disposal.
The completion of the SPA is conditional upon receipt of regulatory approval from the FCA, which is anticipated to happen in Q1 2023. The proceeds of the sale will be received by Cornerstone upon completion. Under the phrases of the licencing agreement, the Company will obtain income in stages over the 12-month period, with the bulk anticipated to be recognised within the second half of 2023.
James Hickman, CEO of Cornerstone, said: “This is an excellent deal for Cornerstone and displays the worth of an e-money registration in addition to our platform. As we have said previously, we have skilled strong buying and selling momentum all through the year, and it’s nice to now be ending 2022 having secured an additional £600,000 for subsequent year. We look ahead to reporting on our additional progress.”