Fiinu PLC Operational & Strategic Update (7098F)
July 12 2023 - 2:00AM
UK Regulatory
TIDMBANK
RNS Number : 7098F
Fiinu PLC
12 July 2023
12 July 2023
Fiinu Plc
("Fiinu", the "Company" or the "Group")
Operational & Strategic Update
Fiinu, a fintech group, creator of the Plugin Overdraft(R),
provides an operational and strategic update.
In the Company's RNS announcement on 28 April 2023, the Company
outlined the challenges it had been facing in respect of raising
the full amount of funding required to provide the exit capital for
its subsidiary Fiinu 2 Limited (formerly Fiinu Bank Limited) to be
able to exit its mobilisation period and commence operations
without restrictions. As a result of these difficult market
conditions, it also stated that it had submitted an application to
the regulators to withdraw its banking licence with the aim of
re-applying after a short period of two to three months once exit
funding had been secured. The Company can confirm that the
application by its subsidiary to withdraw its restricted banking
licence was accepted by the regulators and, due to the continuing
challenging market conditions and limited timescale, it has not yet
been able to secure the necessary exit funding to consider seeking
re-application.
Given the ongoing expense of maintaining and enhancing the
development of the operationally ready banking technology by Group
companies, the Company has now determined that the best course of
action for its shareholders is for cost reductions to be initiated
at its subsidiaries, Fiinu 2 Limited and Fiinu Holdings Limited, by
various means including providing notice to reduce staffing levels,
the re-negotiation or termination of agreements with suppliers. By
reducing costs and satisfying all outstanding debts and liabilities
of Fiinu 2 Limited and Fiinu Holdings Limited, the balance of
resources available to the Company and across the Group will be
optimised as the best way forward for shareholders is
determined.
Unfortunately, due to the current circumstances the Company is
unable to utilise the funding options announced on 15 March 2023
with Dewscope Limited and GEM Global Yield LLC SCS and GEM Yield
Bahamas Limited.
As at 30 June 2023, the Group had available unaudited cash
resources of approximately GBP4.3m. This represents enough funds to
enable the Group to scale back its current operations in Fiinu 2
Limited and Fiinu Holdings Limited and continue to meet its
financial obligations as they fall due.
Whilst Fiinu 2 Limited proceeds with the controlled scaling back
of its operations, which may take a number of months, the Company
will continue to review all its options in respect of the business,
including trying to source the additional funding required for it
to re-apply to the regulators to re-start its banking licence
application, but also other options, which may include a change of
strategy and/or a sale of the Group's technology assets. A change
of strategy will include the Company's other subsidiary Fiinu
Holdings Limited, which holds the intellectual property for the
Group, and the Company.
The Company will make further announcements on progress and
other developments as and when appropriate.
Commenting on the proposals, Chris Sweeney, CEO of Fiinu,
said:
"It is with deep regret that we have had to scale back
operations in Fiinu 2 Limited and Fiinu Holdings Limited, following
the successful completion of the technology build of the Plugin
Overdraft(R). The current general capital, and market specific
conditions, are increasingly challenging for a business at Fiinu's
current stage of development.
"I would like to take the opportunity to thank our shareholders
for their support and colleagues for the considerable efforts in
developing the technology and the infrastructure to be in a
position to launch the product into the market. I would also like
to thank the PRA and FCA for their continued support during these
challenging times ."
Market Abuse Regulation ('MAR') Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of the
Market Abuse Regulation (EU) No 596/2014 ('MAR'), which is part of
UK law by virtue of the European Union (Withdrawal) Act 2018, until
the release of this announcement.
ENDS
Enquiries:
Fiinu plc via Brazil London (press
Chris Sweeney, Chief Executive Officer office for Fiinu)
www.fiinu.com
SPARK Advisory Partners Limited (Nomad) Tel: +44 (0) 203 368 3550
Mark Brady / Adam Dawes
SP Angel Corporate Finance LLP (Joint Tel: +44 (0) 207 470 0470
Broker)
Matthew Johnson / Charlie Bouverat
(Corporate Finance)
Abigail Wayne / Rob Rees (Corporate
Broking)
Panmure Gordon (UK) Limited (Joint Tel: +44 (0)207 886 2500
Broker)
Stephen Jones / Atholl Tweedie (Corporate
Finance)
Hugh Rich (Corporate Broking)
Brazil London (press office for Fiinu) Tel: +44 (0) 207 785 7383
Joshua Van Raalte / Christine Webb
/ Jamie Lester
About Fiinu
Fiinu, founded in 2017, is a fintech group, that developed the
Plugin Overdraft(R) which is an unbundled overdraft solution that
allows customers to have an overdraft without changing their
existing bank. The underlying bank Independent Overdraft(R)
technology platform is bank agnostic, that therefore enables it to
serve all other banks' customers. Open Banking allows Fiinu's
Plugin Overdraft(R) to attach ("plugin") to the customer's existing
primary bank account, no matter which bank they may use. Fiinu's
vision is built around Open Banking, and it believes that it
increases competition and innovation in UK banking.
For more information, please visit www.fiinu.com
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END
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