Cornerstone FS Plc (AIM: CSFS) announced on Friday the decision to sell its non-core subsidiary Avila House, an electronic money institute, to Aspire Commerce (trading as MulootMoney.com) for £300,000.

Cornerstone Offloads Avila House to Aspire Commerce in Cash Deal

The two companies, Cornerstone and Aspire, have already entered a share purchase agreement, and the payment will be made in cash. In addition to the acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term deal, Aspire agreed to license the Cornerstone platform for 12 months which will generate a minimum of £290,000 for the London-listed company.

The proceeds from the sale will go to strengthen Cornerstone’s cash reserves. The approval for the sale is now pending with the FCA, and the companies are expected to close the deal by Q1 2023.

“This is an excellent deal for Cornerstone and reflects the value of an e-money registration as well as our platform,” said the CEO of Cornerstone, James Hickman, who joined the company last August. “As we have said previously, we have experienced strong trading momentum throughout the year, and it is great to now be ending 2022 having secured an additional £600,000 for next year. We look forward to reporting on our further progress.”

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Cornerstone's Strategic Offloading of Non-Core Asset Avila

Cornerstone acquired Avila in October 2020 to enter the electronic money institution. However, the parent company obtained Financial Conduct Authority’s approval as an Authorized Electronic Money Institution, thus supplanting the limited license of Avila.

The official press release detailed that Avila generated revenue of £197,996 in the financial year 2021, mostly from inter-Group related activities. It ended the year with a profit of £2,418.

With the two similar licenses in its pocket, the board of the London-listed company decided to sell Avila to Aspire, a provider of payment accounts and lending services and also non-competing with Cornerstone.

Earlier this year, Cornerstone acquired London-based Capital Currencies, a foreign exchange broker specializing in the provision of currency exchange and international payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term. Furthermore, the company is expanding internationally and opened a Dubai office last year.