REG - Vela Technologies - Acquisition of a 28.8% interest in Igraine plc

Vela TechnologiesAnnouncement

30/03/2022 13:15

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RNS Number : 6299G  Vela Technologies PLC  30 March 2022

30 March 2022

Vela Technologies plc

("Vela" or "the Company")

Acquisition of a 28.8% interest in Igraine plc

The Board of Vela (AIM: VELA), an AIM-quoted investing company focused on
early-stage and pre-IPO disruptive technology investments, is pleased to
announce the acquisition of 23,928,080 ordinary shares, representing 28.82% of
the issued share capital, in Igraine plc ("Igraine"), the Aquis-listed
med-tech investment company
(https://www.aquis.eu/aquis-stock-exchange/member?securityidaqse=KING
(https://www.aquis.eu/aquis-stock-exchange/member?securityidaqse=KING) ) ("the
Acquisition" or "Investment").

Highlights

·    Vela becomes the largest single shareholder in Igraine

·    28.82% stake acquired on 30 March 2022 for cash consideration of
£430,705 at 1.8p per Igraine share

·    The Investment is part of Vela's growing commitment to be more active
in identifying opportunities for 'fast-track' returns for Vela shareholders
from the Company's investment portfolio

Rationale for the Investment

Vela's investing policy includes investing in companies and special situations
which have discernible potential to deliver returns for shareholders. Against
a background of difficult capital markets, the Vela Board recognises the need
to be more active in developing and delivering the means to achieve such
returns.

With a healthy cash balance and as a co-investor alongside Vela in the AZD1656
Arcadia drug development programme, the Board of Vela believes that Igraine
represents a compelling investment opportunity for the Company.

Information on Igraine

Igraine's business strategy is to source and develop break-through innovative
technologies and commercially attractive discoveries in the health, med-tech
and life science sectors worldwide.

Igraine's latest unaudited balance sheet at 30 June 2021 shows net liabilities
of £58,000 and an unaudited loss before tax for the period ended 30 June 2021
of £133,000. At a general meeting held on 28 June 2021, Igraine shareholders
agreed to the issue of subscription shares for gross proceeds of £2.0 million
and a 2% investment in Excalibur Medicines Ltd ("EML"), a subsidiary of
Excalibur Healthcare Services Ltd ("Excalibur").

EML has secured exclusive rights to and owns the patents on a drug, AZD1656,
which is being developed as a therapeutic treatment for diabetics suffering
from COVID-19 and other respiratory diseases. Simultaneously with its
investment in EML, Igraine additionally acquired a right to co-invest in all
healthcare and life-science investment opportunities sourced or invested in by
Excalibur. Excalibur was founded and is wholly owned by Professor Sir
Christopher Evans OBE, a renowned bio-tech entrepreneur.

Based on publicly available information, Vela has calculated that the net
asset value per share of Igraine today exceeds the price that it has paid for
the shares that it has acquired; and the Board of Vela is therefore of the
view that Igraine's current quoted market price is not a true reflection of
the underlying value of the business.

Brent Fitzpatrick, Non-Executive Chairman of Vela, holds 372,499 ordinary shares in Igraine, representing 0.449% of the current issued share capital of Igraine.

Details of the Acquisition

Vela has today acquired 23,928,080 ordinary shares in Igraine at a price of
1.8p per share from a number of existing investors in Igraine for £430,705,
paid in cash from the Company's existing cash resources.

Following the Investment, Vela now has a portfolio of 12 investments.

For further information, please contact:

 Vela Technologies plc                                         Tel: +44 (0) 7421 728875

 Brent Fitzpatrick, Non-Executive Chairman

 James Normand, Executive Director
 Allenby Capital Limited (Nominated Adviser and Joint Broker)  Tel: +44 (0) 20 3328 5656
 Nick Athanas/Piers Shimwell
 Peterhouse Capital Limited (Joint Broker)                     Tel: +44 (0) 20 7469 0930
 Lucy Williams / Duncan Vasey / Eran Zucker

 

About Vela Technologies

Vela Technologies plc (AIM: VELA) is an investing company focused on early
stage and pre-IPO long term disruptive technology investments. Vela's
investee companies have either developed ways of utilising technology or are
developing technology with a view to disrupting the businesses or sector in
which they operate. Vela Technologies will also invest in already-listed
companies where valuations offer additional opportunities.

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