Catenae Innovation - Half-year Report and Convertible Loan
30/09/2022 07:00
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RNS Number : 2322B Catenae Innovation PLC 30 September 2022
30 September 2022
Catenae Innovation PLC
("Catenae", the "Company" or the "Group")
Half Year Results
Convertible Loan
Catenae Innovation PLC (AIM: CTEA), the AIM quoted provider of digital media
and technology, announces its half-yearly report for the six months ended 31
March 2022.
Financial overview
· Loss of £287,168 in the period under review (2021: £586,798) with
revenues of £17,500 (2021: £12,308).
· Net asset position £110,033 (2021: £1,035,493).
Operational overview
· In January 2022, the Company completed the ISO 27001 accreditation
audit on behalf of the International Standards Organisation (ISO), ensuring
that the Company retained its accreditation.
· In March 2022, the Company secured the renewal of the Charlton
Athletic Community Trust 'On Side' licence and support agreement with a
contract value of £37,500 to be paid over the next three years. The Company
received an additional £1,000 upfront payment for the migration to a new
server.
· The Company continued its participation with the UK Government's
Department for Digital, Culture, Media and Sport ("DCMS") in the development
of the Digital Identity and Trust Attributes Framework Policy.
· The Company also promoted itself at Construction Industry events in
London and Birmingham, focusing on its digital identity solutions.
Post period end
· In May 2022, the Company secured a c.£95,000 Digital Technology
Solution purchase order with Saxavord UK Space Port. It is anticipated that
c.£66,400 of this purchase order will be recognised as revenue in the second
half of the current financial year.
Convertible Loan
The Company also announces that, post period end, it has entered into an
agreement for a convertible loan facility for up to £250,000 ("Convertible
Loan") with Sanderson Capital Partners Limited ("Sanderson Capital"), which
will consist of an initial drawdown of £125,000 followed by a further
drawdown expected three months thereafter.
At each drawdown, the Company will issue new ordinary shares to Sanderson
Capital equal to 10 percent of the drawdown value at an issue price of the
10-day volume weighted average price prior to the date of drawdown. A further
announcement will be made on the date of each drawdown event.
Sanderson Capital will be able to convert part or all of the Convertible Loan
facility in minimum increments of £5,000, with the conversion price being
fixed at the lower of i) 0.25p; or ii) 90% of the 5-day volume weighted
average price from the first day of dealings of the Company's restoration to
trading on AIM. The Convertible Loan facility is interest-free.
As part of the Convertible Loan facility agreement, Sanderson Capital will be
issued new ordinary shares and a warrant over new ordinary shares in the
Company, of which the issue price and exercise price will be the closing
mid-price of the Company's ordinary shares on the first day of dealings
following the lifting of the suspension and restoration to trading of the
Company's ordinary shares on AIM.
The new ordinary shares and warrant over new ordinary shares will be issued
after the next general meeting of the Company and a further announcement
setting out the details will be made at the time of issue.
Guy Meyer, Chief Executive Officer of Catenae, said:
"Given the challenging trading conditions as a result of the Covid-19 pandemic
and market uncertainty, the Company has been very prudent with our resources
and has focused on securing contract wins.
"Our acquisition of Hyperneph has proved disappointing, but the board remains
optimistic about the prospects of recouping monies committed as a result of
that transaction.
"Catenae's ongoing consultation with DCMS in the development of the Digital
Identity and Trust Attributes Framework Policy reflects the Company's standing
in the sector. Our investment in software IP development also contributes to
the future-proofing of our competitive product set offerings, not just within
the Geo-spatial sector.
"We look forward to keeping the market updated on how these opportunities
progress."
This announcement contains inside information for the purposes of the UK
Market Abuse Regulation. The person who arranged for release of this
announcement on behalf of the Company was Guy Meyer, Chief Executive Officer
of the Company and the Directors of the Company are responsible for the
release of this announcement.
For further information please contact:
Catenae Innovation PLC +44 (0)191 580 8545
Guy Meyer, Chief Executive Officer
Cairn Financial Advisers LLP (Nominated Adviser) +44(0)20 7213 0880
Liam Murray / Jo Turner
Shard Capital Partners LLP (Broker) +44 (0)20 7186 9952
Damon Heath
Yellow Jersey PR (PR & IR) +44 (0)20 3004 9512
Sarah Hollins / James Lingfield
Notes to Editors:
About Catenae Innovation PLC
Catenae Innovation is an AIM quoted provider of digital media and technology
services. The Company specialises in Distributed Ledger Technology solutions
that solve commercial challenges and create opportunities for its clients. The
Company has an experienced IT team of project managers and integrators who
have deployed systems across corporate, government and educational sectors.
www.catenaeinnovation.com (http://www.catenaeinnovation.com)
Consolidated Statement of Comprehensive Income
For the Period Ended 31 March 2022
Unaudited Unaudited Audited
six months ended six months ended year
31 March 31 March ended
2022 2021 30 Sept
2021
£ £
£
Revenue 17,500 12,308 30,210
Cost of sales (6,000) - (14,400)
Gross profit 11,500 12,308 15,810
Administrative expenses (298,668) (599,116) (939,027)
Impairment losses - - (318,629)
Loss from operations (287,168) (586,808) (1,241,846)
Net Finance income/(expense) - 10 (10)
Loss before taxation (287,168) (586,798) (1,241,836)
Taxation - - (5,112)
Total comprehensive loss for the year (287,168) (586,798) (1,246,948)
Loss attributable to:
Owners of the parent (280,260) - (1,257,149)
Non-controlling interest (6,908) - 10,201
Consolidated Statement of Financial Position
For the Period Ended 31 March 2022
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 31 March 30 Sept
2022 2021 2021
£ £ £
Non-current assets
Tangible Assets 6,518 - 6,828
Intangible assets 1 1 1
6,519 1 6,829
Current assets
Trade and other receivables 30,514 47,475 45,236
Cash and cash equivalents 337,183 1,254,445 605,082
367,697 1,301,920 650,318
Current liabilities
Trade and other payables (264,183) (248,428) (275,221)
(264,183) (248,428) (275,221)
Non-current liabilities
Interest-bearing loans - (18,000) -
Total Liabilities (264,183) (266,428) (275,221)
Net Assets/(Liabilities) 110,033 1,035,493 381,926
Non-controlling Interest 4,610 - 11,518
Capital and reserves attributable to equity holders of the company
Ordinary share capital 570,078 551,773 562,441
Deferred share capital 3,159,130 3,159,130 3,159,130
Share premium account 19,665,458 19,663,223 19,657,821
Share reserve (83,333) (83,333) (83,333)
Merger reserve 11,119,585 11,119,585 11,119,585
Capital Redemption Reserve 2,732,904 2,732,904 2,732,904
Retained losses (37,058,399) (36,107,789) (36,778,140)
Total Equity 110,033 1,035,493 381,926
Consolidated Statement of Cash Flows
For the Period Ended 31 March 2022
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 2022 31 March 2021 30 Sept 2021
£ £ £
Loss for the period (287,168) (586,798) (1,246,948)
Adjustments for:
Impairment of investments - - 318,629
Net bank and other interest (income) / charges
- (10) (10)
Issue of share options / warrant charge - - -
Services settled by the issue of shares - 48,000 72,704
Net (loss) before changes in working capital
(287,168) (538,808) (855,625)
(Increase) / decrease in trade and other receivables
15,034 (34,766) (24,633)
(Decrease) / increase in trade and other
payables (11,038) (5,898) (112,896)
Cash from operations (283,172) (579,472) (993,154)
Interest received - 10 10
Interest paid - - -
Net cash flows from operating activities
(283,172) (579,462) (993,144)
Investing activities
Investment in subsidiary - - 217,500
Net cash flows from investing activities
- - (217,500)
Financing Activities
Issue of ordinary share capital 15,273 1,119,864 1,119,683
Repayment of loans - - (18,000)
New loans raised - - -
Net cash flows from financing activities
15,273 1,119,864 1,101,683
Net increase / (decrease) in cash (267,899) 540,402 (108,961)
Cash and cash equivalents at beginning of period
605,082 714,043 714,043
Cash and cash equivalents at end of period
337,183 1,254,445 605,082
Company Statement of Financial Position
For the Period Ended 31 March 2022
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 31 March 30 Sept
2022 2021 2021
£
£ £
Non-current assets
Intangible assets 1 1 1
1 1 1
Current assets
Trade and other receivables 24,242 47,475 45,237
Cash and cash equivalents 332,209 1,254,445 539,842
356,451 1,301,920 585,079
Current liabilities
Trade and other payables (255,828) (248,428) (226,660)
(255,828) (248,428) (226,660)
Non-current liabilities
Interest-bearing loans - (18,000) -
Total Liabilities (255,828) (266,428) (226,660)
Net Assets/(Liabilities) 100,624 1,035,493 358,420
Capital and reserves attributable to equity holders of the company
Ordinary share capital 570,078 551,773 562,441
Deferred share capital 3,159,130 3,159,130 3,159,130
Share premium account 19,665,457 19,663,223 19,657,821
Share reserve (83,333) (83,333) (83,333)
Merger reserve 11,119,585 11,119,585 11,119,585
Capital Redemption Reserve 2,732,904 2,732,904 2,732,904
Retained losses (37,063,197) (36,107,789) (36,790,128)
Total Equity 100,624 1,035,493 358,420
Company Statement of Cash Flows
For the Period Ended 31 March 2022
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 March 2022 31 March 2021 30 Sept 2021
£
£ £
Loss for the period (273,069) (586,798) (1,269,137)
Adjustments for:
Impairment of investment 320,000
Net bank and other interest (income) / charges
- (10) (10)
Issue of share options / warrant charge - - -
Services settled by the issue of shares - 48,000 72,704
Net (loss) before changes in working capital
(273,069) (538,808) (876,443)
(Increase) / decrease in trade and other receivables
20,995 (34,766) (24,633)
(Decrease) / increase in trade and other
payables 29,168 (5,898) (157,318)
Cash from operations (222,906) (579,472) (1,058,394)
Interest received - 10 10
Interest paid - - -
Net cash flows from operating activities
(222,906) (579,462) (1,058,384)
Investing activities
Investment in subsidiary - - (217,500)
Net cash flows from investing activities
- - (217,500)
Financing Activities
Issue of ordinary share capital 15,273 1,119,864 1,119,683
Repayment of loans - - (18,000)
New loans raised - - -
Net cash flows from financing activities
15,273 1,119,864 1,101,683
Net increase / (decrease) in cash (207,633) 540,402 (174,201)
Cash and cash equivalents at beginning of period
539,842 714,043 714,043
Cash and cash equivalents at end of period
332,209 1,254,445 539,842
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.
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