REG - Velocity Composites - Share Premium Reduction Effective

Velocity CompositesAnnouncement

28/09/2023 13:00

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RNS Number : 0366O  Velocity Composites PLC  28 September 2023

28 September 2023

VELOCITY COMPOSITES PLC

("Velocity, the "Company" or the "Group")

 

Share Premium Reduction Effective

 

Velocity Composites plc (AIM: VEL), the leading supplier of composite material
kits to aerospace and other high-performance manufacturers, is pleased to
provide the following update.

At a general meeting of the Company held on 29 August 2023 (the "General
Meeting"), a resolution was passed by shareholders to resolve that the
Company's Share Premium Account was cancelled ("Cancellation"), in order to
eliminate the Company's accumulated losses and also create positive
distributable reserves equal to the amount by which the Share Premium Account
cancelled exceeds the accumulated deficit.

To be effective, the Cancellation required Court approval and the Company is
pleased to announce that Court approval has now been obtained and the
Cancellation is now effective. This follows the Court order approving the
reduction of capital which was registered with Companies House on 25 September
2023.

Whilst the Board and management remain focussed on the continued execution of
the Company's stated growth strategy as the primary means of delivering
shareholder value in the near term and has no current intention of declaring
dividends, the proposed Cancellation would provide greater scope to do so in
the future if the Board determined that the declaration of dividends were
appropriate.

Application will be made to the London Stock Exchange for the admission of the
EIS/VCT Placing Shares to trading on AIM. Admission of the EIS/VCT Placing
Shares is expected to occur at 8.00 a.m. on 6 October 2023 ("Admission").

Following Admission, the total number of Ordinary Shares in the capital of the
Company in issue will be 53,393,368 with each Ordinary Share carrying the
right to one vote. There are no Ordinary Shares held in treasury and therefore
the total number of voting rights in the Company will be 53,393,368. The above
figure may be used by Shareholders in the Company 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 share capital of the
Company under the FCA's Disclosure, Guidance and Transparency Rules.

 

Unless otherwise defined, capitalised terms within this announcement shall
have the same meaning as those contained within the announcement dated 9
August 2023 under RNS number 7242I.

 

Change of Name of Nominated Adviser and Broker

 

The Company also announces that its nominated adviser and broker has changed
its name to Cavendish Securities plc (formerly Cenkos Securities plc)
following completion of its own corporate merger.

 

Enquiries:

 Velocity                                             Tel: +44 (0) 1282 577577
 Andy Beaden, Chairman

 Jon Bridges, Chief Executive Officer

 Cavendish Securities (Nominated Adviser and Broker)  Tel: +44 (0)20 7220 0500
 Katy Birkin

 Ben Jeynes

 George Lawson

 SEC Newgate (Financial Communications)               Tel: +44 (0)7540 106 366

 Robin Tozer                                          Email: velocity@secnewgate.co.uk

 George Esmond

 Harry Handyside

 

About Velocity Composites

Based in Burnley, UK, Velocity Composites is the leading supplier of composite
material kits to aerospace and other high-performance manufacturers, that
reduce costs and improve sustainability. Customers include Airbus, Boeing, and
GKN.

 

By using Velocity's proprietary technology, manufacturers can also free up
internal resources to focus on their core business. Velocity has significant
potential for expansion, both in the UK and abroad, including into new market
areas, such as wind energy, urban air mobility and electric vehicles, where
the demand for composites is expected to grow.

 

 

 

 

 

 

 

 

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