Last checked at 27 Jun 2016 11:00
27 June 2016
Vela Technologies plc
("Vela" or the "Company")
Update on investment in StreamTV Networks Inc.
The Board of Vela (AIM: VELA), the investing company focused on early-stage and pre-IPO disruptive technology investments, is pleased to provide an update on its investment in StreamTV Networks Inc. ("StreamTV").
StreamTV is a US company that has developed a proprietary technology called Ultra-D which enables the viewing of 3D media without the need for glasses and from any angle. Vela made a minority investment of $100,000 in StreamTV in October 2013 by way of Convertible Promissory Notes (the "StreamTV CPN"). The StreamTV CPNs accrued interest at the rate of 12% annually until 31 December 2014; 13% until the end of June 2015; 14% until the end December 2015 and 15% until the end of June 2016. Vela also receive an additional bonus equating to the interest that would have been paid until December 2016, at a rate of 15%, to reflect any conversion prior to this time. The final maturity date on the StreamTV CPNs is 1 August 2016.
Following a proposal being made by the board of StreamTV to the holders of the StreamTV CPNs, Vela has entered into a conversion notice on 23 June 2016 agreeing to an early conversion of its $100,000 StreamTV CPNs, along with accrued interest of US$43,693.16, into new Class A Common shares in StreamTV at a price of US$3.00 per share. The accrued interest includes an additional bonus amount totalling US$7,500 as a consequence of the early conversion being sought by StreamTV.
As a result of the above conversion Vela's investment in StreamTV now comprises an interest in 47,898 Class A Common Shares in StreamTV which, at the conversion price of US$3.00 per share, are valued at US$143,694. Following the conversion by Vela and other holders of the StreamTV CPNs Vela has an interest in 0.14% of the Class A common share capital of StreamTV.
Antony Laiker, Executive Director of Vela, made the following statement:
"We have previously informed the market that StreamTV had entered into volume production in China. This conversion will enable StreamTV to reorganise and simplify their share capital in order to enable the raising of further capital via an institutional financing to take StreamTV into the next stage of their development."
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