Vela Technologies Regulatory News (VELA)

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.

13 December 2017

Vela Technologies plc

("Vela" or the "Company")

Placing to raise £750,000

The Board of Vela (AIM: VELA), the investing company focused on early-stage and pre-IPO disruptive technology investments, is pleased to announce that the Company has raised gross proceeds of £750,000 through a placing of 115,384,615 new ordinary shares of 0.1 pence each in the Company (the "Placing Shares") at a price of 0.65 pence per share (the "Placing Price") (together the "Placing"). The net proceeds from the Placing will be used by the Company to take advantage of further investment opportunities as and when they arise.

The Placing has been undertaken under the Company's existing share allotment authorities approved by shareholders at the annual general meeting of the Company held on 19 October 2017. The Placing, which was oversubscribed, has been arranged by Smaller Company Capital Limited as the Company's broker.

Subscribers in the Placing will be issued with 1 warrant for every 2 Placing Shares (the "Placing Warrants") exercisable for a period of up to 12 months from Admission at 1 pence per ordinary share.

Antony Laiker, Executive Director of Vela, commented:

 "2017 has been a busy year for Vela culminating in this fundraise which will place Vela in a strong position for further investments. There is a wealth of talent, drive and enthusiasm among early stage technology businesses and we had been approached by several investors who wanted exposure to our latest transactions. These funds will assist us in discussions with suitable investments as well as providing Vela with the ability to act more proactively to increase shareholder value."

Details of the Placing and Admission

The Placing is conditional on admission of the Placing Shares to trading on AIM. Following Admission, the Placing Shares will represent, in aggregate, approximately 13.79 per cent. of the issued share capital of the Company as enlarged by the issue of the Placing Shares.

Application has been made for the 115,384,615 Placing Shares to be admitted to trading on AIM ("Admission"). It is anticipated that Admission will occur on or around 15 December 2017.

Total Voting Rights

Following Admission, the issued share capital of the Company will consist of 836,973,115 ordinary shares with one voting right per share. The Company does not hold any shares in treasury, and therefore the total number of ordinary shares and voting rights in the Company will be 836,973,115. This figure may be used by shareholders in the Company as the denominator for the calculations but 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 Guidance and Transparency Rules.

Market Abuse Regulation

The Market Abuse Regulations (EU) No. 596/2014 (MAR) became effective from 3 July 2016. Market soundings, as defined in MAR, were taken in respect of the Placing with the result that certain persons became aware of inside information, as permitted by MAR. That inside information is set out in this announcement and has been disclosed as soon as possible in accordance with paragraph 7 of article 17 of MAR. Therefore, those persons that received inside information in a market sounding are no longer in possession of inside information relating to the Company and its securities.

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