This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 which forms part of UK
law by virtue of the European Union (Withdrawal) Act 2018
("MAR").
11 December 2024
GSTechnologies
Limited
("GST" or
the "Company" or the "Group")
Acquisition of the Business
of CAKE and the Bake Cryptocurrency Platform
GSTechnologies Limited (LSE: GST),
the fintech focused company, is pleased to announce that the
Company's wholly owned subsidiary GS Fintech UAB, which operates
the Company's GS20 Exchange, has entered into a legally binding
Business Purchase Agreement (the "Agreement") to acquire the
business and assets of Cake Pte Ltd and Cake DeFi UAB (together
"CAKE") (the "Acquisition") for an undisclosed cash
consideration.
The Acquisition comprises a leading
cryptocurrency investment platform ("Bake"), with a particularly
strong presence in the DACH region (Germany, Austria, and
Switzerland), and is in line with the Company's strategy to expand
and enhance the international presence and capabilities of its GS20
Exchange platform, providing greater value to both retail and
institutional customers. The GST directors believe the
Acquisition marks a significant step for GST in strengthening the
offering and scalability of its GS20 Exchange platform, which is
central to the Company's GS Money initiative. In particular,
the Acquisition will:
●
significantly expand GS20 Exchange's user base,
adding approximately 50,000 active crypto users;
●
enhance the GS20 Exchange's technology stack,
providing seamless clearing and settlement of cross-border
cryptoasset trades and related fiat currency payments;
and
●
create opportunities for substantial revenue
growth, leveraging the Acquisition's strong historic financial
performance and established market presence.
Further information on CAKE and the
Acquisition
Founded in 2019, CAKE currently has
approximately 700,000 registered users, 100,000 funded users and
50,000 users holding approximately US$80 million of digital assets
on the Bake platform as at 30 November 2024. It operates the
bake.io website and related iOS and Android mobile applications
which allow users to invest in a variety of digital and
cryptocurrency assets using innovative investment
strategies.
The Acquisition will include the
relevant source code and IT infrastructure required to operate
Bake, including the bake.io domain name and related services,
intellectual property rights, including trademarks and trade names
'Cake DeFi' and 'Bake', together with customer lists and assets.
GST plans to integrate key personnel from CAKE into its
digital assets' operations prior to Completion, ensuring seamless
continuity in areas such as finance and treasury, software and
engineering, and legal and compliance. The majority of the
CAKE employees are based in Singapore.
GS Fintech UAB has paid a
non-refundable deposit as part of the Agreement, with the
Completion payment expected to be fully settled in cash, funded
entirely from the Company's own funds. The Acquisition is
anticipated to complete on 2 January 2025 ("Completion").
Under the Agreement the vendors will use reasonable
commercial efforts during the three months following Completion to
assist the Company in the continued operation, transition, and
integration of the Acquisition.
Further information on Bake can be
found at: https://bake.io
Tone Goh, Chairman of GST, commented:
"The Acquisition represents a transformative
opportunity for the GS20 Exchange and GST as a whole. By
integrating CAKE's business, we aim to deliver a more comprehensive
and robust suite of services to a growing user base, particularly
in Europe. The combined capabilities of the GS20 Exchange and
the acquired Bake platform will not only enhance customer
experience, but also create long-term value for our
shareholders.
"We expect 2025 will be a pivotal year for the cryptocurrency
sector and we believe GST is extremely well positioned to take
advantage of these market dynamics. I look forward to
providing further updates in due course as we continue on our
mission to deliver innovation and efficiency in the global fintech
and cryptoasset sectors."
Enquiries:
The Company
Tone Goh, Executive
Chairman
+65 6444 2988
Financial
Adviser
First Sentinel Corporate
Finance
+44 (0)20 3855 5551
Brian Stockbridge / Gabrielle
Cordeiro
Broker
CMC Markets
+44 (0)20 3003 8632
Douglas Crippen
Financial PR & Investor
Relations
IFC Advisory Limited
Tim Metcalfe / Graham Herring /
Florence Chandler
+44 20 (0) 3934 6630