TIDMGST
RNS Number : 1045A
GSTechnologies Ltd
28 May 2021
28 May 2021
GSTechnologies Limited
("GST" or the "Company")
Wise MPay Collaboration Agreement
GSTechnologies Limited (LSE: GST), the integrated information
and communication technology infrastructure solutions provider, is
pleased to announce the signing of a Collaboration Agreement (the
"Agreement") with Wise MPay Pte Ltd ("Wise MPay"), the Singaporean
blockchain payment solution provider, with a view to Wise MPay
providing the Company with software and services to facilitate the
Company's plans to develop new higher-growth synergistic business
areas focussed on blockchain technology, particularly those
applicable in the banking and wider financial services sector. The
Agreement builds upon the Memorandum of Understanding between the
Company and Wise MPay announced on 21 April 2021.
Background
As previously announced, GST remains focussed on its corporate
strategy of operating a profitable information and communications
technology ("ICT") business, serving some of the most respected
governmental and private organisations worldwide. This strategy
includes seeking to enable and enhance the current Internet of
Things ("IoT") and ICT offerings through the application of new
highly scalable disruptive technologies, in particular enterprise
blockchain solutions and services.
Whilst the Company remains focussed on developing the existing
business of its wholly owned subsidiary EMS Wiring Systems, the
Company's goal is to also focus on new higher growth synergistic
business areas focussed on blockchain technology, particularly
those applicable in the banking and wider financial services
sector. The Company's blockchain technology activities are being
led by the Company's executive directors, Jack Bai and Shayne Tan,
with the support of the wider GST team. Additionally, the Company
established earlier this year two wholly owned subsidiaries, GS
Fintech Ltd, in UK, and GS Fintech Pte Ltd, in Singapore to
facilitate its future plans.
Future plans
Through the collaboration between GST and Wise MPay, underpinned
by the Agreement, the Company plans to launch a borderless
neobanking platform providing next-generation digital money
solutions. The Company's neobanking platform, to be named GS Money,
is intended to be made up of the following products:
1. GS Money protocol, a global money protocol for stable digital
tokens built on the Coalculus blockchain platform. The GS Money
protocol will be designed to enable companies (regulated money
services business, payment processor and merchants) to launch new
payment use cases and conduct the wholesale netting of payments
between retail payment providers in a trusted and compliant
manner.
2. GSend, a remittance gateway which is initially intended to be
launched in the UK. The GSend electronic bank-to-bank transfer
method will be supported by Wise MPay's banking and financial
institution partners, and overseas agent network, currently
operating in over 18 countries and in over 20 currencies. GST are
in the process of applying for an Authorised Payment Institution
(API) licence in the UK to provide the required approval for this
service.
3. GS Money App, a mobile neobank application offering fee-free
cross border payments. This new payment service is intended to use
regulated stablecoins and blockchain-based 'bank accounts' to
instantly transfer value between US dollars, Sterling, Euros and
Chinese Yuan via a mobile device without foreign exchange mark-ups
or additional fees. Once launched, the GS Money App intends to
operate as a European Electronic Money Institution (EMI) licenced
service, subject to the appropriate approvals being received. The
GS Money App will not follow a banking/lending business model and
it will not be engaging in fractional reserve practices as
undertaken by banks. The cash reserve will be transparently managed
by an EU registered entity that is yet to be established or
acquired. Every stablecoin token will be backed 1-to-1 with real
currency.
Software and services to be supplied under the Agreement
Under the Agreement Wise MPay will supply the Company with a
number of standard and bespoke software packages which include,
inter alia, software to enable the Company to establish a
remittance portal (GSend), an eWallet app (GS Money), Know Your
Client (KYC) administration and an encryption engine.
Additionally, Wise MPay will supply four enterprise blockchain
consensus nodes that come with 25 million stake tokens each, based
on the Coalculus blockchain platform, to enable transaction
validation on the Coalculus network for transactions undertaken by
GST's proposed customers in US dollars, Euros, Sterling and Chinese
Yuan.
These software packages being supplied by Wise MPay will be
integrated on the Company's cloud server, together with software
supplied by the Company and third party payment gateway
packages.
Wise MPay has agreed to provide reasonable ongoing support and
training to the Company in respect of the software and systems it
is supplying, together with software and Coalculus platform
upgrades when available.
Consideration for the Agreement
Payment for all the software and services to be provided under
the Agreement will be satisfied by the issue of 100,000,000 new
ordinary shares in the Company ("New Ordinary Shares") to Wise
MPay, subject to the approval of the issue of the New Ordinary
Shares by the Company's shareholders at a General Meeting to be
convened in due course. Additionally, in order for the Company to
issue the New Ordinary Shares and for them to be admitted to
trading on the Standard Segment of the Official List and on the
Main Market of the London Stock Exchange the Company is required to
publish a prospectus approved by the Financial Conduct Authority
("FCA"). The Company has commenced preparation of the required
prospectus, which will be submitted to the FCA for approval in due
course.
In the meantime the Company and Wise MPay have agreed to work
together to progress the Company's plans and the implementation of
the software and services to be provided under the Agreement.
Further announcements will be made as appropriate.
Tone Goh, Chairman of GST, commented: " I am delighted that we
have agreed terms with Wise MPay to provide the required software
and support to enable the establishment of our planned borderless
neobanking platform providing next-generation digital money
solutions. These are exciting times for GST as we endeavour to be
at the forefront of the next wave of financial services and I look
forward to making further announcements as we progress."
Enquiries:
The Company
Tone Goh, Executive Chairman Singapore +65 6444 2988
Financial PR & Investor Relations
IFC Advisory Limited
Tim Metcalfe / Graham Herring / Florence +44 20 3934
Chandler London 6630
For more information please see:
https://gstechnologies.co.uk/
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END
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