10 June
2024
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 31 March
2024.
Key numbers as at 31 March
2024*
· The
value of Vela's total assets (including cash) decreased during the
quarter by £640,000 (10%) to £5,540,000 (quarter to 31 December
2023 - a decrease of £639,000 to £6,180,000 (9%)).
· Vela's
portfolio comprised a total of 14 active investments (31 December
2023 - 15). The reduction is due to the sale of Vela's residual
holding in Kanabo Group plc, as detailed below. Two of the 14
active investments were unquoted, twelve were quoted.
· The
fair value of the investment portfolio was £5,487,000 (31 December
2023 - £6,174,000).
· The
change in the value of the investment portfolio reflects the
disposal of investments valued at £156,000 at 31 December 2023
(generating a realised profit of £23,000); and a net unrealised
decrease in the fair value of the investment portfolio of
£531,000 (quarter to 31 December 2023 - an
unrealised decrease of £575,000).
· Vela's
cash balance stood at £53,000 (31 December 2023 -
£6,000).
*The figures contained within this quarterly investment update
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 2023, unless there has been a
transaction since that date which suggests a materially different
valuation.
Key developments in the
quarter
· The
Company sold 195,902 shares in Finseta plc (formerly Cornerstone FS
Plc) ("Finseta"), generating net proceeds of £56,000.
· The
Company sold 120,000 shares in EnSilica plc ("EnSilica"),
generating net proceeds of £67,000.
· The
Company sold its remaining 357,692 shares held in Kanabo Group plc,
generating net proceeds of £9,000.
· The
Company sold 10,000 shares in Conduit Pharmaceuticals Inc.
("Conduit"), generating net proceeds of £25,000.
· The
Company sold 50,000 shares in MTI Wireless Edge Ltd, generating net
proceeds of £22,000.
· On 26
March Vela issued 294,117,647 new ordinary shares of 0.01 pence
each in settlement of a £50,000 corporate finance advisory fee
payable to the Company's broker, Peterhouse Capital Limited at an
effective issue price of 0.017 pence per share. As explained in the
Company's previous quarterly investment update, announced on 23
February 2024, this fee crystallised in January 2024 on the
termination of discussions regarding a potential
transaction.
Events since the end of the
quarter
· The
Company has sold 110,000 shares in EnSilica, generating net
proceeds of £68,000.
· On 24
May, the London Stock Exchange announced that its Russell 3000
Index would, from 1 July, include the
shares of Conduit.
Investment portfolio
At 31 March 2024 the Company's
portfolio of investments was valued at £5,487,000 and comprised
equity interests in the following 14 companies:
· Aeristech Limited
· Community Social Investment Limited
· Conduit Pharmaceuticals Inc.
· Finseta PLC (formerly Cornerstone FS PLC)
· Ethernity Networks Ltd
· EnSilica plc
· Igraine PLC
· MTI
Wireless Edge Ltd
· Northcoders Group plc ("Northcoders")
· R8
Capital Investments PLC (formerly Mode Global Holdings
plc)
· Global
Connectivity plc (formerly Rural Broadband Solutions
PLC)
· Skillcast Group plc
· Tribe
Technology Group PLC
· TruSpine Technologies plc ("TruSpine")
Key developments in investee
companies since the last quarter
· On 8
May 2024, Finseta announced results for the year ended 31 December
2023, showing a doubling of turnover, a profit before tax of £1.3
million (against a £5.8 million loss for the previous year) and
cash generation from operations of £2 million.
· On 14
May 2024, EnSilica announced that it expected to report record
revenues of approximately £25 million for the year to 31 May 2024
(2023: revenue of £20.5 million) and profit after tax of
approximately £1.9 million (2023: £1.8 million). In May, EnSilica
also announced a fundraise of £5.3 million to finance its growing
business momentum and the development of its intellectual
property.
· In
April Northcoders announced its 2023 results showing a 27% increase
in revenue and a small loss, reflecting the company's investment in
infrastructure and its B2B training division.
· In
March TruSpine announced the issue of £1.5 million convertible loan
notes and in May reported a share transfer and co-operation
agreement with the original inventor of TruSpine's
products.
Other
activities
· Since
the publication of the last quarterly update in February 2024, the
Board of Vela has spoken or met with representatives of the
following investee companies:
o Conduit Pharmaceuticals Inc.
o TruSpine Technologies plc
o MTI
Wireless Edge Ltd
o Finseta plc
o Skillcast Group plc
o EnSilica plc
o Northcoders Group plc
o Igraine PLC
For further information,
please contact:
Vela Technologies plc
Brent Fitzpatrick, Non-Executive
Chairman
James Normand, Executive
Director
|
Tel: +44 (0) 7950 389469
|
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
|
|
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.