REG - Vela Technologies - Exercise of Put Option

Vela TechnologiesAnnouncement

01/12/2023 15:15

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RNS Number : 4492V  Vela Technologies PLC  01 December 2023

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (596/2014/EU) as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018

1 December 2023

Vela Technologies plc

("Vela" or "the Company")

 

Exercise of Put Option for sale of Economic Interest in AZD1656

Highlights:

·      Exercised the put option agreement to sell its economic interest
in AZD1656 for shares in Conduit Pharmaceuticals Inc.

·    The stake held by Vela is now valued at approximately £3.75 million
(based on the closing share price of Conduit at 30 November 2023) compared to
the fair value of £2.35 million reported at the last audited balance sheet
date of 31 March 2023

Further to the Company's announcement on 21 September 2023, the Board of Vela
(AIM: VELA), an AIM-quoted investing company focused on early-stage and
pre-IPO disruptive technology investments, announces that the Company has
exercised the put option agreement to sell its economic interest in the
commercialisation of the Covid-19 application of AZD1656 (the "Economic
Interest") to Conduit Pharmaceuticals Inc. ("Conduit"), a company listed on
the Nasdaq Global Market in the United States ("NASDAQ").

Under the terms of the put option the consideration is payable to Vela in the
form of 1,015,760 new shares of authorised common stock of par value $0.001 of
Conduit ("the Consideration Shares"). As previously announced by the Company,
the issue price of the Consideration Shares is calculated based on the
volume-weighted average price per share of Conduit over the ten business days
prior to the date of notice of exercise with a floor of $5 on the issue price.

Based on the closing price of Conduit at 30 November 2023, being $4.68 per
share, the Consideration Shares are valued at approximately £3.75 million. As
at 31 March 2023, the Company's Economic Interest was valued at £2.35
million. In addition, the Company paid £400,000 in cash in April 2023 to
acquire the put option, details of which were announced by Vela on 20 April
2023.

Following admission of the Consideration Shares to NASDAQ, which is expected
to be during December 2023, Vela will hold approximately 1.38% of the issued
share capital of Conduit.

The Consideration Shares will not be subject to any lock-in restrictions. As
announced by the Company on 20 April 2023 it is the intention of Vela, subject
to the necessary regulatory requirements of NASDAQ, to sell the Consideration
Shares in order to augment its cash reserves.

For further information, please contact:

 Vela Technologies plc                        Tel: +44 (0) 7410 886830

 Brent Fitzpatrick, Non-Executive Chairman

 James Normand, Executive Director
 Allenby Capital Limited (Nominated Adviser)  Tel: +44 (0) 20 3328 5656
 Nick Athanas / Piers Shimwell
 Peterhouse Capital Limited (Broker)          Tel: +44 (0) 20 7469 0930
 Lucy Williams / Duncan Vasey
 Novus Communications (PR and IR Adviser)     Tel: +44 (0) 20 7448 9839
 Alan Green / Jacqueline Briscoe

 

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.

About Conduit Pharmaceuticals Limited

Led by highly experienced pharma executives, Conduit is a clinical stage
specialty biopharmaceutical company, addressing unmet medical needs in the
areas of autoimmune disease and idiopathic male infertility. The development
pipeline includes a glucokinase inhibitor in a number of Phase 2 ready
autoimmune diseases including uveitis, Hashimoto's Thyroiditis, pre-term
labour and renal transplant. Conduit's development pipeline also includes a
potent, irreversible inhibitor of human Myeloperoxidase (MPO) that has the
potential to treat idiopathic male infertility.

 

For the year ended 31 December 2022 Conduit reported net income of $399,000.
As at 30 September 2023 Conduit's unaudited net liabilities totalled
$1,081,000.

 

 

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