Hmm. So a 33% discount to NAV possibly. Attractive but not unheard of in PE-land. I expect this discount to shrink as Vela gets some cash return on its stakes over the coming 18 months. When will that process start, I wonder?
Net assets per share
I have done some calcs. At 31.3.14 it was 0.36p. At 31.3.15 it had fallen to 0.33p. Using riddlers recent valuation figures it comes out at 0.33p, unchanged, and now with the latest placing it drops to 0.30p. Don't take those figures as absolutely accurate but whilst the directors say that the share price is well below the net asset value per share, the frequent placings seem more likely to drive the nav down rather than that the sp should rise. Just IMO.
Hard to believe...
...that this was trading at close to 4p in October 2013 when the first investment was made (Rosslyn). It's been a long hard road for the backers so far.
The proposed new investment is in a Vancouver-headquartered blockchain technology company (Blockchain Tech) in the process of a reverse acquisition onto Canada’s TSX Venture Exchange, with it anticipated that Vela would have a circa 5% post-listing equity interest. Blockchain Tech’s current focus is noted to be on developing a remittance solution, Interbit (based in London), as well as providing consultancy services to firms looking to leverage blockchain technology, with Vela adding that“blockchain as a technology is currently creating considerable excitement, with household names like NASDAQ, UBS, Deloitte and BNP, to name but a few, at various stages of committing to developing blockchain applications”. This thus looks an opportune investment, whilst the prospective placing price compares not too unfavourably with the 0.23p the shares reached earlier this month (and 0.16p at which we recommended them in March). The shares nudged higher earlier this month with the company emphasising that it considered that “the underlying value of the portfolio is significantly higher than the value attributed to Vela”, with us stating then that we continued to see the potential for a comprehensive update on the value of the investment portfolio and further news flow to spark the shares higher – see HERE. The company now notes “following on from our recent updates on some of our portfolio companies, we anticipate being in a position to communicate further to shareholders on our portfolio of investments in the near future” and, with results for the company’s year ended 31st March 2015 required to be published by the end of September anyway, at up to 0.20p, our stance remains buy. We reckon we will hot the target sell price with the results as investors realise what a massive discount to NAV the shares trade at.
all over again flood with Shares , sp goes well down ,consolidate them and three months later into administration
Market was waiting for a Blockchain play Should be a nice play
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