Vela Technologies Regulatory News (VELA)

Vela Technologies plc

("Vela" or the "Company")

Further financing and issue of equity announcement by Nektan plc

Vela Technologies plc (AIM: VELA), the investing company focused on early stage and pre-IPO disruptive technology investments, notes the announcement released by Nektan plc ("Nektan") yesterday in connection with Nektan having raised an additional £2.75 million of further financing to support Nektan's overall growth strategy.

Nektan is a portfolio company of Disruptive Tech Limited ("DTL"), in which Vela has made its largest investment to date. Vela acquired 262,090 shares in DTL in August 2013 equating to a 0.63% interest in DTL's issued share capital.

Nektan will issue convertible loan notes to new and existing investors raising £2.39 million, subject to the terms as detailed in its announcement of 28 April 2015. Further, a total of 232,258 new ordinary shares in Nektan have been placed at a price of 155 pence per new ordinary share, raising gross proceeds of approximately £0.36 million for Nektan. The new Ordinary Shares have been placed with Octopus Investments Limited.

A copy of Nektan's announcement is below and a link to the Nektan announcement can be found at: http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/12528011.html 

About Nektan

Nektan is the leading international B2B mobile gaming content developer and platform provider. The Company designs, builds and operates mobile games in the regulated, interactive real money gaming ("RMG") and freemium gaming space, delivering original and innovative content to large commercial organisations that have established online audiences.

Nektan's full end-to-end technology platform, Evolve, simplifies and supports the route to mobile and desktop gaming revenues, managing the full customer experience and back-office operations, allowing commercial partners to focus solely on marketing the product to their consumers.

Nektan also operates a joint venture, Respin LLC, with Spin Games LLC that provides US land-based casinos with in-venue mobile technology and an innovative way of increasing revenue from end-of-life cabinets whilst providing players new and innovative content to play, which includes functionality on mobile devices. Nektan is regulated by the Gibraltar Licensing Authority and the UK Gambling Commission and has offices in Gibraltar, London and Las Vegas.

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Nektan plc

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

Further Financing of £2.75 million and Issue of Equity

Nektan plc (AIM: NKTN), the leading international B2B mobile gaming content developer and platform provider, is pleased to announce, following its announcements of 28 April and 29 May 2015, that it has raised, through a further follow-on fundraising, an additional £2.75 million through the issue of £2.39 million of Convertible Loan Notes and a placing of 232,258 new Ordinary Shares of £0.01 each ("Ordinary Shares") (together the "Fundraising"). In order to satisfy potential additional demand from new institutional and private investors, a further follow-on fundraising by way of subscriptions for Convertible Loan Notes and /or placing shares is anticipated.

Nektan will issue Convertible Loan Notes to new and existing investors raising £2.39 million through the issue of non-VCT and VCT Loan Notes, subject to the terms as detailed in the Company's announcement of 28 April 2015. The new Ordinary Shares have been placed with Octopus Investments Limited at a price of 155 pence per new Ordinary Share (being equal to the prevailing share price), raising gross proceeds of approximately £0.36 million for the Company (the "Placing Shares"). Octopus Investments Limited also subscribed for £0.6 million of the total amount of £2.39 million issue of Convertible Loan Notes.

The net proceeds from the Fundraising will be used to support the Company's overall growth strategy and maintain strong momentum in its key markets by:

· underpinning expansion in the US tribal and commercial casino market by Nektan's US joint venture Respin, where it recently announced continued significant momentum and now has 12 live casinos and a further 22 signed contracts and/or letters of intent with licensed casino operators; and

· supporting the working capital requirements of the Group.

The Company has today allotted and issued the Placing Shares, credited as fully paid and being identical to and ranking pari passu in all respects with the existing Ordinary Shares. Accordingly, an application has been made for admission of the new Ordinary Shares to trading on AIM ("Admission"), and it is expected that such Admission will become effective and that dealings will commence on AIM at 8.00 a.m. UK (BST) time on 9 October 2015.

Following Admission, the Company's enlarged issued ordinary share capital will comprise 22,806,635 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury. This figure of 22,806,635 Ordinary Shares 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 in their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Related party transaction

Octopus Investments Limited currently has a beneficial interest in 15.5 per cent. of the issued share capital of the Company, and its participation in the Fundraising consequently constitutes a related party transaction under Rule 13 of the AIM Rules for Companies. The Company's directors, having consulted with the Company's nominated adviser, consider that the terms of the Fundraising are fair and reasonable insofar as its shareholders are concerned.

Gary Shaw, Executive Chairman of Nektan, stated:

"Respin, our US joint venture, is continuing to build on its strong momentum as it accelerates the addition of new contracts with casino partners for Xtraspin wheels. Slot machines fitted with our Xtraspin wheels are generating revenue "coin in" uplifts in excess of 30% for our casino partners. This additional funding, which attracted a number of new investors as well as the continuing support of existing shareholders, will be used principally to help Respin further capitalise on its first mover advantage.

The Company continues to see strong quarterly growth across all key performance indicators as Nektan maintains its progress and strong momentum in our key markets in Europe and the US."