Last checked at 22 Jul 2022 07:00
22 July 2022
Vela Technologies plc
("Vela" or "the Company")
Quarterly Investment Update
The Board of Vela (AIM:VELA), an AIM-quoted investing company focused on early-stage and pre-IPO disruptive technology investments, is pleased to report an update for the quarter ended 30 June 2022.
Executive Director, James Normand, commented: "The Board is pleased to report a moderate increase in the portfolio valuation for the quarter, despite a challenging macro backdrop. Notwithstanding the uncertain economic outlook generally, including in the sectors represented by the Company's portfolio, we remain positive about the prospects for the companies in which Vela is invested."
Key numbers as at 30 June 2022*:
· Vela's portfolio comprised a total of 13 active investments (31 March 2022 - 12). Two of these investments were unquoted, ten were quoted, and the final investment was the interest in future royalties from the Covid-19 remedy being developed by St George's Street Capital ('SGSC') (which is held in the balance sheet as a financial asset).
· The fair value of the investment portfolio was £5,972,000 (31 March 2022 - £5,616,000).
· The change in the value of the investment portfolio reflects investments during the quarter of £300,000 and a net increase in its fair value of £56,000.
· Vela had cash balances totalling £631,000 (31 March 2022 - £949,000).
\* The figures contained within this quarterly investment update at 30 June 2022 and at 31 March 2022 are taken from unaudited management information.
Investments traded on a recognised stock market are valued using the accounting policies outlined in the notes to the annual financial statements. Unlisted investments and other financial assets are stated at the values attributed to them in the audited balance sheet as at 31 March 2021, unless there has been a transaction since that date which suggests a materially different valuation.
Key developments in the quarter:
· In June, Vela made an investment of £300,000 in TruSpine Technologies plc ("TruSpine") through subscribing for new ordinary shares in TruSpine as part of a £700,000 fundraising undertaken by the company (see announcement released by Vela on 23 June 2022).
· Vela received its first-ever dividend (from MTI Wireless Edge Ltd).
· The board received confirmation from SGSC, in relation to the clinical drug trials for the AZD1656 Covid-19 drug, that active engagement with commercial partners continues.
Key developments in investee companies in the quarter:
· In May, the ordinary share capital of EnSilica plc ("EnSilica") was admitted to trading on AIM in conjunction with a £6 million fundraise. The loan notes held by Vela and the interest accrued since the investment was made by Vela in January 2022 automatically converted into new ordinary shares in EnSilica at a 12 per cent. discount to the flotation price. On admission Vela therefore became the holder of 1,764,788 ordinary shares in EnSilica representing 2.3 per cent. of the enlarged issued share capital.
Developments since 30 June 2022:
· On 6 July investee company, Community Social Investment Limited (formerly WeShop Limited), announced that it had sold, for £250,000, an option that it held to subscribe for convertible loan notes in WeShop Holdings Limited (formerly Boanerges Limited). Full details are noted within Vela's announcement dated 6 July 2022.
· On 19 July Northcoders Group plc ("Northcoders") announced unaudited results for the first half of 2022 which exceeded both the previous year's results and management expectations. Details can be found on Northcoders' website at: https://www.northcodersgroup.com/rns_announcements/archive/2022/190722
· On 21 July Antony Laiker was appointed as a non-executive director of the Company.
Investment portfolio
At 30 June 2022 the Company's portfolio of investments was valued at £5,972,000 and comprised interests in the following 13 companies:
· Community Social Investment Limited (formerly WeShop Limited)
· Cornerstone FS PLC
· Aeristech Limited
· EnSilica plc
· Igraine PLC
· Kanabo Group Plc
· MTI Wireless Edge Ltd.
· Mode Global Holdings plc
· Rural Broadband Solutions PLC
· Northcoders Group plc
· Skillcast Group plc
· St George Street Capital Limited
· TruSpine Technologies plc
The Company also holds a legacy investment in an unquoted company, being DTL (UK) Limited (formerly Disruptive Tech Limited), the value of which was written down to zero some years ago and which continues to be ascribed no value.
Since the publication of the last quarterly update on 3 May 2022, the board of Vela has met with the boards of the following investee companies:
· Aeristech Limited
· Cornerstone FS PLC
· Igraine PLC
· Skillcast Group plc
· TruSpine Technologies plc
For further information, please contact:
Vela Technologies plc Brent Fitzpatrick, Non-Executive Chairman James Normand, Executive Director
| Tel: +44 (0) 7421 728875 |
Allenby Capital Limited (Nominated Adviser) | Tel: +44 (0) 20 3328 5656 |
Nick Athanas / Piers Shimwell
| |
Peterhouse Capital Limited (Broker) | Tel: +44 (0) 20 7469 0930 |
Lucy Williams / Duncan Vasey / Eran Zucker / Lauren Riley
| |
Novus Communications (PR and IR Adviser) | Tel: +44 (0) 20 7448 9839 |
Alan Green / Jacqueline Briscoe
|
About Vela Technologies
Vela Technologies plc (AIM: VELA) is an investing company focused on early stage and pre-IPO long term disruptive technology investments. Vela's investee companies have either developed ways of utilising technology or are developing technology with a view to disrupting the businesses or sector in which they operate. Vela Technologies will also invest in already-listed companies where valuations offer additional opportunities.