Annual results and restoration of trading
08/04/2022 07:00
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RNS Number : 7195H NFT Investments PLC 08 April 2022
The information contained within this announcement is deemed by the Company to
constitute inside information stipulated under the Market Abuse Regulation
(EU) No. 596/2014, as retained as part of the law of England and Wales. Upon
the publication of this announcement via the Regulatory Information Service,
this inside information is now considered to be in the public domain.
Press Release
08 April 2022
NFT Investments PLC
("NFT Investments" or "The Company"")
Annual results and restoration of trading
NFT Investments PLC (AQSE: NFT), an incubator specialising in the market for
non-fungible tokens ("NFTs"), announces its audited results for the 12 months
ended 31 December 2021.
Highlights
· Raised £35m before expenses through a flotation on the Aquis Stock Exchange
Growth Market ("AQSE"), a record for AQSE, on 16 April 2021.
· Made seven investments and one exit in early-stage growth technology and media
businesses engaged in NFTs and digital assets totalling approximately £5.8m.
· A £1.73m gain on investment in Kodoku Studios Ltd. ("Kudoku Studios"), an
NFT-focused gaming company, following its takeover.
· Established significant positions in the following cryptocurrencies: BNB,
Bitcoin, Ether, XBD, FLOW and DOT.
· Filed an application for listing on Canada's NEO Exchange on 8 December 2021.
· Net asset value amounted to £34.38m, equivalent to 3.43p per share, as at 31
December 2021 comprising cash and cash equivalents of £21.9m and net book
value of investments including cryptocurrencies of £12.5m.
Update on proposed transaction and restoration of trading
On 24 January 2022, the Company signed a non-binding letter of intent for the
proposed acquisition of Pluto Digital PLC ("Pluto Digital") for a
consideration of £96m to be satisfied in NFT shares, subject to shareholder
approval. NFT Investments' shares were suspended from trading pending
conclusion of the discussions.
After careful consideration, the Company announces today that it will not
proceed with the proposed acquisition of Pluto Digital at this time. The
Company will continue to evaluate other opportunities in the NFT sector that
it believes will be accretive to shareholder value. NFT Investments' shares
will return to trading at 08:00am (BST) today.
Outlook
· The NFT sector continues to enjoy strong growth as digital assets gain
increasing popularity with collectors and investors as a new asset class.
· The Company is well positioned to take advantage of the recent market
correction in the blockchain and digital assets sectors by investing at
attractive valuations.
Commenting on the results, Jonathan Bixby, Executive Chairman of NFT
Investments, said:
"Since listing in April last year, NFT Investments has made considerable
progress in implementing its investment strategy. Despite volatile market
conditions we secured a stake in seven companies that have high growth
potential and are equipped to make an impact on the blockchain sector. At the
same, we also took the opportunity to realise significant gains from one
investment.
"The NFT sector continues to show strong growth and we have a cash-rich
balance sheet to take advantage of new investment opportunities to generate
long term value for shareholders and deliver a sustained increase in net asset
value, which currently amounts to 3.43p per share."
The Directors of NFT Investments accept responsibility for this announcement.
For further information please contact:
NFT Investments
Jonathan Bixby via Tancredi +44 207 887 7633
Executive Chairman
Neil Thapar
Investor Relations +44 7876 455 323
First Sentinel
Corporate Adviser +44 7876 888 011
Brian Stockbridge
Tennyson Securities
Corporate Broker +44 207 186 9030
Peter Krens
Novum Securities
Corporate Broker +44 207 399 9427
Colin Rowbury
Jon Belliss
Tancredi Intelligent Communication
Media Relations
Gabriela Amaya Garcia +44 7915 035 294
Edward Daly +44 7861 430 057
Charlie Hobbs +44 7897 557 112
nftinvestments@tancredigroup.com (mailto:nftinvestments@tancredigroup.com)
About NFT Investments:
NFT Investments PLC is an incubator specialising in the market for
non-fungible tokens ("NFTs") and is the first ever NFT vehicle to list in a
major jurisdiction worldwide. The Company invests in a diversified portfolio
of NFTs, cryptocurrency, and/or in companies or funds which have exposure to
NFT or blockchain technology. The Company's leadership team have an extensive
track record in the cryptocurrency sector and previously founded Argo
Blockchain PLC, a global crypto miner. NFT Investments is headquartered in
London, UK and its shares are listed on the Aquis Stock Exchange Growth Market
under the ticker symbol NFT. https://www.nftinvest.pro/
(https://www.nftinvest.pro/)
Chairman's statement
Introduction
I am delighted to report NFT Investments' first full year results as a
publicly listed company since its stock market debut on AQSE on 16 April 2021,
noting that the period under review covers approximately nine months activity
as a quoted plc.
A total of £35m before expenses was raised at the IPO, significantly higher
than the Company's original plans, and a record for a new issue on AQSE.
The flotation came at a time of burgeoning global interest in the NFT sector
and provided the Company with a strong capital base to invest in and nurture a
range of innovative NFT ventures with the purpose of delivering long term
capital gains for our investors. These businesses are applying potentially
disruptive technologies spawned by the blockchain and digital revolution.
The Company made a commitment to move quickly to invest its funds within the
first 12 months of its flotation. We have done as promised. Despite volatile
market conditions, the Board and its advisory panel evaluated a wide range of
opportunities in accordance with the Company's investment criteria and due
diligence process while maintaining a highly selective and prudent policy.
This culminated with seven investments for an outlay of approximately £5.8m
plus the establishment of a portfolio of cryptocurrencies valued at £6.9m at
the end of the year. While investing with the aim of generating significant
gains over the long term, our investment in Kodoku Studios has already
produced 349% gain as a result of its takeover by Pioneer Media Holdings Inc.
("Pioneer Media") in November last year for £2.225m in cash and shares.
There was no revenue during the period as the Company was in start-up phase. A
loss before tax of £2.8m (H1 2020: £0.04m) was incurred in the year,
reflecting costs related to the valuation of warrants issued, the start-up of
the business, two separate fund-raising rounds including the IPO, as well as
operational expenses.
The Company also ended the year with a strong and liquid balance sheet with
cash and cash equivalents of £21.9m as at 31 December 2021. Our robust
financial position means that we are well placed to consider new opportunities
at attractive valuations.
After careful consideration we have decided to terminate our discussions for
the acquisition of Pluto Digital. However, the Company will continue to
explore other exciting opportunities to create sustained long-term value for
shareholders.
I would like to take this opportunity to thank all our shareholders for their
support last year and look forward to updating them on our discussions in due
course.
Jonathan Bixby, Executive Chairman
Market opportunity
The NFT market has dramatically increased in both value and popularity in the
past year. In January 2021, sales of NFTs on the largest NFT trading platform
OpenSea totalled just US$8m. In August 2021 alone, sales reached more than
US$3 billion. In January 2022, OpenSea reported that over US$5 billion had
been spent on NFTs that month.
Overall, users spent more than US$44 billion on NFT marketplaces and
collections in 2021, according to data from Chainalysis, a blockchain data
platform. These figures were not just from a few large trades inflating the
market, but most transactions were under US$10,000. (Source: Chainanalysis,
2021, Report Preview: The 2021 NFT Market Explained [Updated 1/13/22]).
While the majority of NFT sales were at modest prices, some have sold at
values that are comparable with traditional art. For example, in November
2021, Human One by Beeple sold for almost US$30 million. The highest price for
an NFT sale ever was reached in December 2021, when Pak's The Merge was bought
by a collection of 30,000 investors for a combined value of US$91.8 million.
Operational review
During the period the Company made seven investments, described below:
· US$1m was invested in AEON International Ltd., a leading developer of
cutting-edge technology for the luxury fashion industry.
· US$0.7m was invested into Blimp Technologies Inc., a first-of-its-kind,
decentralised real estate collaboration and search platform, incorporated in
Canada.
· CAN$0.1m was invested in Big Whale Labs, a start-up venture which is using
Web3.0 technologies to create a decentralised social network platform.
· US$1.4m was invested into Sturdy Exchange, a marketplace to display, collect
and trade NFTs created by artists and performers, via Hex Capital Ltd., a
venture capital firm that invests in early-stage crypto assets and blockchain
companies.
· US$0.25m was invested into Afterparty Inc., a platform for creators to engage
with their fans and generate revenues by selling "token-gated" virtual events
and sell digital merchandise.
· US$1m was invested in NFT Studios Ltd., a film production company run by Niels
Juul, a well-known Hollywood producer, funding movies exclusively through
NFTs.
· £0.5m invested in Kodoku Studios, an innovative NFT-gaming company for a 25%
stake which was subsequently sold in exchange for approximately £0.125m cash
and a 3% stake in Pioneer Media Holdings Inc., an AQSE-listed company. Based
on Pioneer Media's closing share price of 107p dated 31 December 2021, the
stake is worth £2.14m and has generated a £1.73m gain on the Company's
investment in Kodoku Studios.
Outlook
The NFT industry is growing rapidly, and the Company sees significant
opportunities to create value for investors as the Board believes that the NFT
opportunity is the first example of blockchain monetising at scale and that
NFTs are the future of digital ownership and commerce.
Despite the volatility in trading conditions in the cryptocurrency markets,
excellent progress is being made to execute on the investment strategy and the
Directors continue to evaluate a significant number of exciting new investment
opportunities.
As a result, NFT Investments is well positioned to take advantage of the
recent correction in the blockchain and digital asset sectors by investing at
attractive valuations when investment conditions stabilise.
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2021
Year ended 31.12.21 Period 3.3.20 to 31.12.20
£ £
Revenue
Profit on sale of investment 1,602,444 -
Loss on disposal of crypto assets (205,580) -
Administrative expenses (1,220,850) (39,705)
Share based payments (2,147,242) -
Operating loss (1,101,378) (39,705)
Gain on revaluation of investments 208,208 -
Loss on revaluation of crypto assets (1,067,146) -
Finance income 115 1
Loss before tax (2,830,051) (39,704)
Tax - -
(Loss)/profit after taxation (2,830,051) (39,704)
Other comprehensive income - -
Total comprehensive income for the year (2,830,051) (39,704)
Earnings per share attributable to the equity owners of the company (pence):
Basic loss per share (0.38) (0.04)
Diluted (loss)/earnings per share (0.38) (0.04)
The notes contained in the Company's Annual Report form part of these
financial statements.
Statement of Financial Position
For the year ended 31 December 2021
31.12.21 31.12.20
£ £
Assets
Non-Current assets
Intangible assets 6,917,916 -
Investments 5,559,308 -
12,477,224 -
Current assets
Trade and other receivables 125,765 110,200
Cash and cash equivalents 21,903,724 55,096
22,029,489 165,296
Total assets 34,506,713 165,296
Equity and liabilities
Current liabilities
Trade and other payables 124,427 5,000
Net current liabilities 124,427 5,000
Equity
Share capital 1,003,000 110,000
Share premium 33,323,133 90,000
Share based payment reserve 2,925,908 -
Retained losses (2,869,755) (39,704)
Total equity 34,382,286 160,296
Total equity and liabilities 34,506,713 165,296
The notes contained in the Company's Annual Report form part of these
financial statements.
The financial statements were approved by the Board of Directors on 22 March
2022 and were signed on its behalf by:
Nicholas Lyth
Director
The financial information set out in this announcement does not constitute
statutory accounts. This financial information has been extracted from the
audited full accounts of the Company for the year ended 31 December 2021. The
Company does not declare a dividend for the period.
The full Annual Report of the Company will be available on the Company's
website: www.nftinvest.pro (http://www.nftinvest.pro) . The Company's Annual
General Meeting will be convened in due course.
The Directors of the Company accept responsibility for the contents of this
announcement.
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