Finseta has conditionally raised approximately £1.57m and established a strategic affiliate relationship in the United Arab Emirates, combining new funding with an arrangement intended to expand its international payments and foreign exchange business.
The AIM-listed payments company has entered into an agreement through its wholly owned subsidiary, Finseta Payment Solutions, with Amir Mehrad, founder of international payments business Effective FX and sole shareholder of Homa Holdings.
Homa, a newly established company based in the Abu Dhabi Global Market, will invest approximately £1.47m in Finseta, making it a new strategic shareholder. A further investment of approximately £100,000 has been committed by Joshua James Clarke, taking the total conditional fundraising to around £1.57m.
Under the affiliate agreement, Mehrad will introduce prospective customers to Finseta for its currency exchange and international payments services. The company expects the relationship to generate additional business and support revenue growth, providing access to potential customers in the UAE and wider international markets.
Mehrad brings experience in the foreign exchange and payments sector, having established Effective FX in 2012. He developed the business as a provider of international payments and currency management services before its international payments business was sold to Equals Group plc.
Alongside the new fundraising, Finseta has also proposed converting the entire £1.8m principal amount of existing 8.5% unsecured loan notes held by Chief Commercial Officer Robert O’Brien into ordinary and deferred shares. The proposed restructuring would reduce the company’s outstanding loan note obligations and convert the debt into equity, subject to the necessary approvals.
Finseta Plc (LON:FIN), formerly Cornerstone FS PLC, is a United Kingdom-based foreignexchange and payments company offering multi-currency accounts and payment solutions to businesses and individuals through its global payments network.
