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GSTechnologies Sells EMS Wiring Systems.

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Vincent

MANews-(C)2009-2022

Australia-based fintech and information technology solutions company GSTechnologies Ltd. (LSE: GST) has entered into a binding agreement to sell its EMS Wiring Systems Pte. Ltd subsidiary to Teo Chiah Chiu Raphael, the chairman of EMS, the company said.

The consideration payable by Raphael Teo for the entire issued share capital of EMS, which is currently held by the company, will be the transfer to the company, by way of a share buyback, of 60m ordinary shares of no par value in GST held by him.

At the closing mid-price of 1.09p of the company's shares on 15 July 2022, the Consideration Shares were valued at GBP 654,000 and they represent approximately 3.87 per cent. of the company's issued share capital.

The company intends to hold the Consideration Shares in treasury for future issue or cancellation in due course.

Completion of the Disposal is conditional, inter alia, on completion of the buyback of the Consideration Shares, and the company and EMS entering into a deed of agreement to waive all outstanding liabilities between the company and EMS.

A further announcement will be made in due course when the Disposal completes.

EMS Wiring Systems, based in Singapore, provides wireless, electronic cabling, security, and other solutions to clients operating in the infrastructure development space.

In the year ended 31 March 2021, the company's last reported annual financial results, EMS had sales of USD 2.83 m and made a net loss of USD0.14 m, after receiving USD 0.58 m of COVID-19 related financial assistance from the Singapore government.

For the year ended 31 March 2022 EMS had increased unaudited sales of approximately USD 4m, but continued to be loss making and made an unaudited net loss of approximately USD 0.5m.

The primary focus for the group has, since early 2021, been on the 'GS Fintech' subsidiaries in the UK and Singapore and the company's expansion into blockchain related technologies applied to the financial services sector, specifically its plans to launch a borderless neobanking platform providing...

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