Tennyson 4/12/254 Dec 2025 10:39
CLOSING THE VALUATION GAP WITH WSHP
Tennyson Securities, Technology Research
4 December 2025
In a business update released this morning ahead of its AGM on 22 December, the AQUIS-listed investment company, WeCap (WCAP PZ) has told shareholders that is now fully focused on “closing the valuation gap” with US-listed WeShop Holdings(WSHP US) “for the benefit of all stakeholders”. Shares in WeShop, which began trading on NASDAQ last month, closed last night at $145 per share, valuing the company’s Class A Equity at $1.6 billion. WeCap’s overall investment in WeShop equates to 11.8% of the outstanding Class A WeShop shares (WeCap owns 806,022 directly and 2,083,333 shares indirectly through its 23.5% holding in CSIL; total Class A shares outstanding at WeShop as of today are 10,937,064). As a consequence, the current Net Asset Valuation of WeCap amounts to £130.7 million, or 30.2 pence per share, more than ten times greater than last night’s closing price of 2.5 pence.
Management reminded investors that there is a hard 12-month lock-up on its WeShop shares from the date of the recent US listing, which means it is not permitted to trade its WeShop shares until after 15 November 2026. Once the lock-up is over, the company plans to either distribute its WSHP shares to WeCap shareholders or sell the WSHP shares and distribute the cash to shareholders, the ultimate choice depending primarily on legal and tax advice closer to the relevant date. In the meantime, WeCap is “considering its options” in how to address its outstanding Discounted Capital Bond (DCB) obligation, which requires it to make a payment of£6.965 million on a maturity date that falls within the 12-month lockup period (24 May 2026). To this end, management said it was already “engaging with the DCB holder to find a solution that unlocks the highest possible value for WeCap shareholders”. In present circumstances, with the company’s NAV at over £130 million, we do not expect the company to have any difficulty in meeting its obligations.
Below we show a sensitivity table with the effect of different WeShop valuations on the WeCap Net Asset Value. We continue to recommend investors BUY the stock.
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