Cornerstone FS to Buy Capital Currencies for £3 Million

​Cornerstone FS PLC said late on Wednesday that it has agreed to buy Capital Currencies Ltd. for up to 3 million pounds ($4.1 million) and that it will raise a minimum of GBP850,000 by way of a discounted placing and a subscription.

The AIM-listed cloud-based, software-services provider said that it will use the proceeds of the fundraise to pay the initial cash consideration, as well as expenses related to it, and provide additional working capital for the company.

Cornerstone said it will pay GBP586,000 cash on completion, with further earn-out consideration payable over the next two years in a mix of new ordinary shares, and convertible loan notes--the value of which will depend on performance--and is capped at a maximum total consideration of GBP3 million.

The company said that the total consideration will be satisfied through a mixture of cash, new ordinary shares, and convertible loan notes.

The company said it will issue new ordinary shares at 26.5 pence a share, a 22% discount to Wednesday's closing price of 34 pence a share.

"This acquisition is expected to accelerate our growth, being earnings accretive from the current year, and expand our presence in our core target market," Chief Executive Julian Wheatland said.

Source: MarketWatch