Vela Technologies Regulatory News (VELA)

16 February 2015

Vela Technologies plc

("Vela" or the "Company")

Placing to raise £300,000, issue of equity in satisfaction of fees, related party transactions and director shareholding

Placing to raise £300,000

The Board of Vela (AIM: VELA), the investing company focused on early stage and pre-IPO technology investments, is pleased to announce that the Company has conditionally raised £300,000 (before expenses) through the issue of 200,000,000 new ordinary shares of 0.1 pence each in the Company (the "Placing Shares") with certain existing shareholders and new investors at a price of 0.15 pence per Placing Share (the "Placing").

The Placing price represents a 26.8 per cent. discount to the Company's closing mid-market price of 0.205 pence on 13 February 2015, being the last practicable business day prior to this announcement. The Placing Shares will represent 43.56 per cent. of the enlarged issued share capital of the Company. The Placing is conditional only upon Admission and has been carried out within the Company's existing share authorities.

Antony Laiker (Executive Director of the Company) has subscribed for 15,000,000 Placing Shares at the Placing Price.

The funds raised pursuant to the Placing will provide working capital for the Company and give it the flexibility to take advantage of potential investment opportunities in line with the Company's investing strategy.

Commenting on the successful equity placing, Antony Laiker (Executive Director) and Brent Fitzpatrick (Non-Executive Chairman), said:

"These new funds will create a new platform for Vela to continue its support of existing investments and at the same time broaden its portfolio in a diverse range of technology orientated companies. Going forward, Vela will, where possible, look to provide more active involvement in our investments with a view to better aligning the value of the underlying investments with the market value of the Company."

Issue of equity in satisfaction of fees

The Board of Vela also announces that on 13 February 2015 it issued 4,000,000 new ordinary shares of 0.1 pence each in the Company (the "Fee Conversion Shares") in settlement of an aggregate amount of £6,000 for the period from 1 October 2014 to 31 January 2015 owed to Antony Laiker (Executive Director) to be satisfied through the issue and allotment of 4,000,000 Fee Conversion Shares. The Fee Conversion Shares have been issued at the Placing Price.

Director shareholding

Following the issue of the 4,000,000 Fee Conversion Shares and 15,000,000 Placing Shares, Antony Laiker will be interested in 25,416,274 ordinary shares representing 5.5 per cent. of the issued share capital (as enlarged by the issue of the Placing Shares and Fee Conversion Shares).

Related party transactions

The participation in the Placing by Antony Laiker and the issue of Fee Conversion Shares to Antony Laiker are classified as related party transactions in accordance with Rule 13 of the AIM Rules for Companies. Brent Fitzpatrick, the independent director for the purposes of both transactions, considers, having consulted with the Company's nominated adviser, Allenby Capital Limited, that the terms of the participation in the Placing by Antony Laiker and the issue of Fee Conversion Shares are fair and reasonable insofar as the Company's shareholders are concerned.

Admission and dealings

Application will be made for admission of the 200,000,000 Placing Shares and 4,000,000 Fee Conversion Shares to be admitted to trading on AIM ("Admission") and it is anticipated that Admission will become effective and that dealings will commence in the Placing Shares and the Fee Conversion Shares at 8 a.m. on 2 March 2015.

Following Admission the issued share capital of Vela will consist of 459,088,020 ordinary shares of 0.1 pence each, each carrying the right to one vote. Following Admission the total number of voting rights in the Company will therefore be 459,088,020 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

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