Gold payment app Glint out of administration after £5.7m fundraise

Glint app which lets you pay with gold exits administration after raising £5.7m and fighting off a hostile takeover from one of its own creditors

  • Gold payment app Glint went into administration in September
  • This was not mentioned on its website for five days afterwards
  • In a statement it said it had obtained £5.7m in new financing and users accounts would hopefully be unfrozen on Monday 

An app-based card provider which allowed users to pay with gold has been rescued from administration, having fought off a hostile takeover bid from one of its own creditors.

Glint Pay went into administration in September, but in a statement sent out in the early hours of Friday morning said it had obtained £5.7million in new financing, allowing it to exit administration.

It said the company is now back under the control of its board, as well as founder and chief executive Jason Cozens.

Glint allowed users to buy gold bullion using cash and spend it using a Mastercard debit card

Glint allows users to buy and store gold and use a Mastercard debit card to spend it both in the UK, Europe and the US. 

However, upon going into administration users accounts were frozen and they could not withdraw money, though for five days there was no reference to this on its website.

Cozens said in a statement: ‘I would like to thank existing and new shareholders who have backed the company with a fresh injection of financing.

‘I understand the frustration of our customers, and I can only apologise for the inconvenience caused by the disruption, which led to accounts being suspended.’

It said it expected normal service to resume on Monday 25 November. It remains to be seen if customers who have had cash locked up in Glint will try to cash out when accounts re-opened and we have asked the company if that is a concern. 

Glint’s exit from administration after securing new funds came after it was the subject of a hostile takeover from one of its own creditors – an investment business run out of Singapore.

According to AltFi, a consortium called Intl Ventures Pte Ltd attempted to acquire Glint. 

It was led by Nimoi Holdings, a Singapore-based investment firm owed money from the gold payment company.

Glint’s administrators FRP Advisory LLP previously told AltFi that: ‘Glint has repaid the debt it previously owed to the Nimoi group in full’ and that they ‘are working with a consortium of Glint shareholders and investors with a view to implementing a solvent rescue of the Glint companies to enable an exit from administration.’

Money deposited with Glint is not protected by the Financial Services Compensation Scheme, as it held an electronic money licence from the FCA rather than a full banking licence.

According to Glint’s website, it must ‘maintain a secure and segregated full reserve of all user funds at Lloyds bank in London. 

Your gold really is your gold – it’s physical gold bullion that is legally allocated to you and stored in a vault in Switzerland.

‘Your money really is yours. For every pound, dollar and euro held in your Glint account, Lloyds holds an equivalent amount of assets in their reserve.’

Mr Cozens told This is Money: ‘The freezing of accounts was hugely inconvenient but all funds and gold remained protected and the sole property of our clients. This is what makes Glint’s business so unique.

‘Understandably we have had a number of withdrawal requests but after today’s positive announcement we have also received inbound funds.

‘So we anticipate business returning to normal as it has been in the USA, which has remained unaffected by these unfortunate events.’