REG - Vela Technologies - Strategic Update

Vela TechnologiesAnnouncement

02/09/2022 07:45

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RNS Number : 0793Y  Vela Technologies PLC  02 September 2022

2 September 2022

 

Vela Technologies plc

 

("Vela" or the "Company")

 

Strategic Update

 

The Board of Vela Technologies plc (AIM: VELA) today provides the following
update with regard to the future investment strategy and direction of the
Company.

 

Following the appointment to the board of Antony Laiker, a significant
shareholder in Vela, it has been agreed by the Board that, while not diverting
from the Company's underlying investing policy, Vela will consider other
corporate transactions whereby Vela's assets might be utilised to effect one
or more larger transactions. Such transactions may include, but will not be
limited to: i) an acquisition which constitutes a reverse takeover under the
AIM Rules for Companies; ii) a substantial investment by Vela in a trading
business; or iii) an acquisition of a division of a listed/quoted or private
company.

 

This strategy was previously outlined in the announcement, on 26 September
2019, of Vela's final results for the year ended 31 March 2019. Various
discussions took place subsequent to that announcement, however the advent of
Covid-19 prevented a transaction being able to be concluded, leading to the
reorganisation announced by the Company on 31 July 2020. The Company
subsequently expanded its existing investment portfolio and shareholders
approved a revised investing policy, which was adopted by the Company on 24
January 2022, further details of which were set out in the Company's
announcement of 30 December 2021.

 

The Board is now reinstating the strategy outlined in the announcement of 26
September 2019. The Board believes that the combined value of Vela's listed
investments and cash resources may prove attractive to third parties. In
addition, in current market conditions, such a strategy may provide more
certainty and potential uplift in the value for Vela shareholders going
forward. In the meantime, Vela will continue to realise funds from the sale of
existing investments, where appropriate

 

At this stage, although the Company has had a number of informal discussions
and received a number of approaches, it has not engaged in discussions on any
potential transactions, as outlined above. In the event that such a
transaction is identified, Vela will seek advice from its Nominated Adviser
and, if necessary, seek shareholder approval for any changes required to
ensure that the Company complies with AIM Rules for Companies.

 

As outlined in the Company's quarterly investment update released on 22 July
2022, Vela's investment portfolio comprises a total of 13 active investments
of which two are unquoted, ten are quoted and the final investment is the
interest in future royalties from the Covid-19 drug being developed by St
George's Street Capital ("SGSC"). The unaudited fair value of Vela's
investment portfolio as at 30 June 2022 was £5.97 million.

 

The Board will continue to update investors on the portfolio movements and
valuation in the Company's quarterly updates, the next one being due for the
quarter ended 30 September 2022.

 

For further information, please contact:

 

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

Brent Fitzpatrick, Non-Executive
Chairman                      Email:info@velatechplc.com

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 / Eran Zucker / Lauren Riley

 

 

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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