RNS 13:27hrs5 Apr 2018 14:32
RNS
RNS Number : 9926J
Vela Technologies PLC
05 April 2018
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.
5 April 2018
Vela Technologies plc
("Vela" or the "Company")
Update re. proposed investment in BlockchainK2 Corp.
Further to the announcement released by Vela on 18 January 2018, the Board of Vela (AIM: VELA), the investing company focused on early-stage and pre-IPO disruptive technology investments, notes the update released on 4 April 2018 by Africa Hydrocarbons Inc. ("Africa Hydrocarbons"). Africa Hydrocarbons has completed a private placement, raising in total approximately C$4.257 million (approximately �2.372 million), in conjunction with its proposed "Change of Business" ("COB") transaction.
Following completion of the COB transaction, African Hydrocarbons will become a blockchain technology company, listed on the TSX Venture Exchange. Africa Hydrocarbons has previously announced that the resolution to change the name of the company to BlockchainK2 Corp. ("BlockchainK2") was approved at the Annual General Meeting held on 4 January 2018. Completion of the COB transaction remains subject to a number of conditions including acceptance by the TSX Venture Exchange.
As previously announced, Vela entered into a conditional agreement to invest �200,589 to acquire a minority equity stake in BlockchainK2 (the "Proposed Investment") and Vela's Proposed Investment is part of the C$4.257 million private placement detailed above. BlockchainK2 is a cryptocurrency and blockchain platform that offers mining exposure and proprietary software as a service (SAAS) blockchain solutions with leading industry partners. The Proposed Investment is being funded from Vela's existing cash resources.
The Proposed Investment remains subject to a number of conditions being satisfied. If the COB transaction is not completed, then the Proposed Investment would not take place and funds would be returned to Vela. There can be no assurances that the COB transaction and the Proposed Investment will be completed.