Member Info for BigDave13

I go along with that view re future prospects and other market factors. So we sit at 2x asset value now but are there any other drivers that will take this 3x or 4x in the near term or only post positive trial results? Another magical investments with huge upside could be the trigger as well.

Not sure I agree that SGS paid 0.1 and 0.15p. They were granted the shares (free?) and are not obliged to exercise the warrants and surely will only do so if in the money. Maybe you can argue that it was actually a cost to Vela (& us as shareholders via dilution) for being able to invest in the first place but with a potential reward of multiple s at a later date.

I was thinking about whether the MC of £8.75m represents fair value in terms of assets held by Vela. I breakdown these as follows:
Mode - Investment of £250k at IPO price of 50p, current mid price 43.5p so a little down.
Cornerstone - Investment of £200k - no change til IPO
SGS - Investment of £1.25m cash + issue of 1.1m shares - pending results
Weshop - Investment of £100k - article from 1 year ago mentioned Vela looking for 550p per share which values 71,429 shares at approx £400k - no idea whether this is current fair value or not.
For this exercise, I attribute Nil value to the other remaining 3 investments.
Plus cash reserves of say £1.25m & unsecured debt of £855k resulting from transfer of assets to subsidiary as part of re-org.
That all equates to £4.2m so about 48% of MC.

This means that there is a large premium already baked into the SP, most likely in anticipation of the trial results and its successful commercialisation. Any new investments will initially be valued at cost until they mature. So for now I feel the SP may remain around the 0.07/0.8p range til closer to trial results are known.

Be interested to know what others think, by the way, not de-ramping, already in for a decent chunk of shares and trying to assess whether to take some more and timing.

GBP, EUR and BTC. Listen to the interview from today for latest updates

https://twitter.com/modeapp_

Trial results for sure but don'r forget about Mode. Tweet from CEO just now
"lots of interesting developments and work going on at Mode #mode watch for updates."
followed by lots of rocket emojis!

After the placing next month, RDGC will have 450m shares, £2m cash, no business and the potential of an RTO some time in the future. What is fair value? I would suggest not 3p and I expect their SP to drop further from current levels even with strong interest from key TR1 holders.

Thanks Coastliner88. Agree re the short term SP. Vela does not provide a service or manufacture a product so the SP is based on the value or at least perceived value of underlying investments. As these investments mature we hope that the vela SP will reflect that improved value, but will not happen overnight. Opportunity now to accumulate and at a later date there will be opportunities to top slice if you so desire. There seems to be a clear uptick in the investment quality since JN came on board versus the pre re-org investments. He has the experience, knowledge and more importantly the contacts to make things happen. I think vela has £1m+ cash available so exciting times ahead.

The 31 Jul RNS stated
"Vela is a Rule 15 investing company. The Company's strategy is to seek out a range of investments within the technology field, focusing on companies that have identified areas of business or sectors which could be disrupted by either the development of new or use of existing technologies."

I see current focus on 4 investments being Mode, SGS, Cornerstone and Weshop, the later 2 subject to IPOs. In the near term the SGS trials will deliver the main value in the next 2 months or so and then the ipos as and when they hit the market. I see Mode delivering value thru 2021 as it releases new products onto the market and expands its reach.

Then you have what I refer to as the legacy investments. I calculated North Peak Resources value at around £65k so minimal upside there. Vela holds only a minority shareholding in Revolve Technologies and Disruptive Tech is in a wind down phase. I don't really see much value in these 3 investments and would not surprise me if sold off or written down.

I have trust in JN that he has a clear investment strategy which he is in process of implementing. Vela has funds available to deploy so hopefully news soon on next investment.

I see accounts are up to 31 July 20 and accounting period now changed to 31 Dec. Can't find any details of IPO date but hopefully not too long from now. I did see mention in one article that preparations are largely complete so probably just down to timing now. There has not been any chatter on this fintech investment but I think it may surprise a few, a very exciting company for vela to be invested in. Even though SP is depressed at the moment, stable of investments is fantastic and will take time to mature.

It doesn't affect Vela.

It's just part of the Vela history/re-organisation from last year and following up a discussion from the weekend.

Interesting update at Companies House today re Bixx Ltd
PSC08 form lodged stating "The company knows or has reasonable cause to believe that there is no registrable person or registrable relevant legal entity in relation to the company"

Newco is Bixx Tech Ltd which Vela incorporated as part of the re-organisation.

On 26 Aug, Vela ceased to be the person with significant control of Bixx Tech Ltd and was replaced by Bixx Ltd. Both these changes have only just been reported at Companies House on 21 Jan.

On the same date, Antony Laiker ceased to be a person with significant control of Bixx Ltd. This was only reported yesterday 23 Jan. Quite a lengthy delay between effective date and reporting date so I would expect replacement Director to be reported soon, maybe this week.

Not sure how you would be notified of Operational updates outside annual accounts as a private limited co, perhaps you need to contact new Director once confirmed for guidance.

Thks for correction, I see that note now. 50 from 11 hospitals, now a further 23 hospitals joining the trials. Hopefully all clear now to drive recruitment forward.

From the SGS twitter feed
Sept 30 - First patient recruited
Nov 02 - 15th patient recruited
Nov 19 - 40th patient recruited
7 weeks for 40 patients in UK and potentially the same again in the 2 months since last update. Plus approval to recruit in Romania and Czech Republic from Jan 7. Next couple of months should be exciting pending news on trial outcomes.

TM

That is an interesting proposition. Presumably if Vela were part of this initial £2m placing, an RNS would have dropped today. No doubt if further fund raises when suitable investment identified then Vela could yet be involved. Bring it on!

The RNS dated 27 Aug provided an updated on Weshop. Included were details of an investor taking an option to acquire a further stake in weshop within 6 months at a valuation of £25m. This would value Vela's 1.42% stake at £355k and north of that if ipo'd at a higher valuation.

Thks, that is a good listen. A few years away as employees/costs increase but a clear roadmap to profitability. Looking forward to the journey!

Flowergarden,
interesting numbers, I would be happy with a min 3 bagger at year end.

I see that that Revolut reported post tax losses of $107.4m in 2019, 3 times more than the $32.8 of 2018. Do you have a view on whether Mode will be profitable at year end, no doubt this would also impact MC.

North Peak shareholding = 1.75%
North Peak Mkt Cap CAD$6.7m
GBP CAD fx rate = 1.74
Investment value to Vela = 1.75% * CAD$6.7m / 1.74 = GBP£67,000

Disruptive Tech Limited (DTL) is listed as an investment on the website and it states "DTL is in a wind down phase and will not be making any further investments." Appears that the DTL website is no longer active.

Vela has a 0.62% stake but I wonder if there is actually any value left or will be written down to Nil?