Finseta plc (LSE:FIN) has conditionally raised approximately £1.57 million through a strategic investment and share subscription, alongside announcing plans to convert £1.8 million of existing loan notes into equity.
The payments solutions company has also entered into a new affiliate agreement with financial services entrepreneur Amir Mehrad, aimed at expanding its customer base and supporting growth in Dubai and other international markets.
Homa Holdings to Invest £1.47 Million
Homa Holdings, a company wholly owned by Mehrad, has agreed to invest approximately £1.47 million in Finseta.
The investment comprises a subscription for 7,918,638 new ordinary shares at 6.1174p per share and approximately £989,231 in zero-coupon convertible loan notes.
Subject to regulatory and shareholder approvals, the convertible notes will be exchanged for 16,170,774 additional ordinary shares.
Following the initial subscription, Homa will hold approximately 9.9% of Finseta’s issued ordinary share capital, potentially increasing to 19.9% following the proposed conversions.
Finseta has also secured a further £100,000 subscription from Joshua James Clarke.
Under the affiliate agreement, Mehrad will introduce prospective customers to Finseta’s foreign exchange and international payments services.
£1.8 Million Loan Note Conversion Proposed
Finseta has agreed terms with Chief Commercial Officer Robert O’Brien to convert the entire £1.8 million principal amount of his existing 8.5% unsecured loan notes into ordinary shares and a proposed new class of non-voting deferred shares.
Under the proposed arrangement, approximately £1.52 million would convert into 24,895,311 ordinary shares, with the remaining £277,054 converting into 4,528,954 deferred shares.
The structure is intended to maintain O’Brien’s ordinary shareholding at approximately 29.9%, below the 30% voting rights threshold.
The deferred shares will initially carry no voting or dividend rights but may subsequently be redesignated as ordinary shares under specified conditions.
Finseta said the conversion would eliminate the principal debt and associated repayment obligation, strengthening its balance sheet.
Shareholder Approval and Admission Timetable
The initial subscription will result in the issue of 9,553,319 new ordinary shares, with admission to AIM expected around November 11, 2026.
The proposed loan note conversions remain conditional on shareholder approval and Financial Conduct Authority approvals, with completion anticipated during the first half of 2027.
Following both conversions, Finseta expects to have 121,052,322 ordinary shares in issue.
The company intends to use the fundraising proceeds to support its growth strategy, although the convertible loan note proceeds cannot be accessed until the relevant conversion conditions are satisfied.
Chief Executive James Hickman said the investment and affiliate relationship would support the company’s expansion, particularly in Dubai.
“We are delighted to welcome our new investors to the shareholder register and to have entered into an affiliate arrangement with Amir,” Hickman said.
“His strategic investment, alongside his ability to support the business as part of our introducer network, is set to accelerate our growth, particularly in Dubai.”
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