Supernova Digital - Issue of new shares and proposed return of value
04/03/2024 07:00
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RNS Number : 4138F Supernova Digital Assets PLC 04 March 2024
Press Release
4 March 2024
This announcement contains information which, prior to its disclosure, was
inside information as stipulated under Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310 (as amended). Upon the publication
of this announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain.
Supernova Digital Assets PLC
("Supernova" or "the Company")
Corporate update, issue of new shares and proposed return of value to
shareholders
Supernova Digital Assets (AQSE: SOL), a company specialising in the Solana
ecosystem, is pleased to provide the following update to the Company's
corporate strategy.
Proposed return of value to shareholders
The Company's directors have concluded that the correct approach to the
widening share price discount to NAV is to return value to shareholders after
Phoenix Digital Assets PLC (Aquis: PNIX) completes its tender offer to
shareholders, given that the Company currently holds 30,000,000 shares of
Phoenix Digital Assets PLC. In the opinion of the directors, shareholder value
can best be achieved by the Company trading out the entirety of its current
liquid positions at the right time and then returning capital to
shareholders. The Company currently intends to achieve this by purchasing
its own shares through a tender offer under which shareholders would have the
opportunity to sell shares on a pro-rata basis. A purchase of shares by tender
offer would be subject to both shareholder approval and the consent of the
Court to a reduction of capital required to create distributable reserves.
This goal of returning shareholder funds will be accompanied by a quarterly
trading update in which the Company will publish its holdings of all tokens
and prices on the first business day of each quarter beginning on 3 April
2024.
The directors believe that these transparent actions coupled with a
willingness to ultimately return capital to shareholders is the best approach
given market conditions.
Placing of New Ordinary Shares
The Company is also pleased to announce that it has raised £242,000 (gross)
at 0.1p per share. The funds will primarily be used to support the working
capital needs of the Company, specifically the application to the court for a
reduction in capital, and to further advance the Company's business, aiming to
become a value provider for the Solana ecosystem.
As a result of the placing, the Company has issued 242,000,000 new ordinary
shares of £0.001 each ("Ordinary Shares") in the Company at a price of 0.1p
per share.
Application will be made for the Ordinary Shares, which will rank pari passu
with the existing Ordinary Shares in issue, to be admitted to trading on the
AQSE Growth Market ("Admission"). Dealings are expected to commence on or
around 08 March 2024.
Total Voting Rights
Following Admission, the Company's total issued and voting share capital will
consist of 1,453,225,646 Ordinary Shares. The Company does not hold any
Ordinary Shares in treasury.
The above figure may be used by shareholders as the denominator for the
calculations by which they will determine if they are required to notify their
interest in, or a change to their interest in, the Company under the FCA's
Disclosure and Transparency Rules.
Michael Edwards, Executive Chairman of Supernova Digital Assets, commented:
"Our focus has always been on maximising shareholders return and it has become
clear that a commitment to returning capital in the best strategy for all
shareholders. We are delighted by our timing and the subsequent positioning of
our crypto treasury which is now a majority invested in liquid crypto assets
like Phoenix Digital Assets (PNIX) and SOL. We remain in service to maximising
shareholder return and will keep the market regularly updated moving forward
towards the PNIX tender offer."
The Directors of Supernova Digital Assets PLC take responsibility for this
announcement.
For further information please contact:
Supernova Digital Assets
Michael Edwards +44 7858 888 007
Executive Chairman
First Sentinel
Corporate Adviser +44 7858 888 007
Brian Stockbridge
About Supernova Digital Assets:
The Company will look to identify investment and business building
opportunities in the high growth Solana and crypto currency ecosystem. The
Board intends to deploy the majority of the Company's cash resources in the
acquisition of minority interests in a number of different, yet to be
identified, companies in the broad Solana and crypto currency ecosystem, and
to apply expertise to the business operations and strategic plans of these
companies. The experience, operational skills and contacts of the Board are
intended to act as an accelerator to start-ups and early-stage companies to
maximise their profit opportunity. It is anticipated that returns to
Shareholders will be delivered through a combination of an appreciation in the
Company's share price and through the adoption of a progressive dividend
policy. The Company's Directors have an established track record, experience
and networks in the crypto currency sector, digital assets management, as well
as the media industry to drive value creation.
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