REG - Vela Technologies - Update re. WeShop Limited
RNS Number : 3682XVela Technologies PLC27 August 202027 August 2020
Vela Technologies plc
("Vela")
Update re. WeShop Limited
The Board of Vela (AIM: VELA) notes the announcement made today by Two Shields Investments plc regarding a shareholder update issued by WeShop Limited ("WeShop") in relation to completion of a fundraise through the issue of a convertible loan note, and other matters.
Vela currently holds 71,429 shares in WeShop representing approximately 1.4% of WeShop's share capital. Vela originally subscribed for £100,000 in May 2014 as part of a £1 million seed funding round. The Board of Vela welcomes the new funding for WeShop, as detailed below, and continues to seek to dispose of part or all of its holding in WeShop, as announced on 3 December 2019.
Extracts from the shareholder update issued by WeShop are copied below:
WeShop Update
Highlights include:
· £9,000,000 fundraise completed through the issue of a convertible loan note
· Option granted for a further £2,777,777 cash investment
· Board changes including appointment of Yoav Keren, CEO of BrandShield, to the Board.
Financing
The Convertible Loan Note:
WeShop has announced that terms have been agreed, and completion happened on a £9,000,000 convertible loan note. The terms of the loan note are:
· Interest rate of 8% per annum for a 36-month period
· Unsecured from any debenture
· Conversion triggers which include an IPO, an exit or further funding rounds
· Conversion would occur at a 20% discount to the price of the conversion event
Option to acquire 10% for £2,777,777
The lead investor on the convertible loan note has also taken a 6-month option whereby it allows them to invest a further £2,777,777 into the business at a £25m valuation as equity which would give them a 10% stake in WeShop. Details of the Lead investor shall be released in the coming days.
WeShop Board Changes;
On the 13 August, Yoav Keren was appointed to the board of WeShop as Non-Executive Director. Yoav is the founder and CEO of Brandshield. BrandShield is an online threat hunting company, specialized in monitoring, detection and removal of online threats such as phishing attempts, executive impersonation, counterfeit products, trademark infringements and more. BrandShield was established to revolutionize the way companies can protect their digital assets outside their security perimeter.
For further information, please contact:
Vela Technologies plc
Brent Fitzpatrick, Non-Executive Chairman
James Normand, Executive Director
Tel: +44 (0) 7421 728875
Allenby Capital Limited (Nominated Adviser and Joint Broker)
Tel: +44 (0) 20 3328 5656
Nick Athanas/Asha Chotai
Peterhouse Capital Limited (Joint Broker)
Tel: +44 (0) 20 7469 0930
Lucy Williams / Duncan Vasey / Eran Zucker
About Vela Technologies
Vela Technologies (AIM: VELA) is an investing company focused on early stage and pre-IPO long term disruptive technology investments. There are currently 5 investments in the portfolio which either have developed ways of utilising technology or developing technology with a view to disrupting the businesses or sector in which they operate. More recently, Vela Technologies has also started to focus on existing listed companies where valuations may offer additional opportunities.
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