TIDMVELA
RNS Number : 5456W
Vela Technologies PLC
13 December 2023
13 December 2023
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 September 2023.
Executive Director, James Normand, commented:
"The small and micro-cap sectors of the stock markets (in which
Vela is largely invested) continue to mark time and so valuations
remain depressed and liquidity remains very poor. Offsetting this
for Vela in the September quarter has been the listing on NASDAQ of
the shares of Conduit Pharmaceuticals Inc., thus crystallising a
market value for Vela's put option over its interest in the AZD1656
drug being developed by St George Street Capital. This has offset
the continued diminution in the values attributed by stock markets
to some of Vela's very sound, indeed promising, investee companies.
We remain hopeful that the market will resume an upward cycle
before long."
Key numbers as at 30 September 2023*
-- The value of Vela's total assets (including cash) increased
during the quarter by GBP942,000 (16.0%) to GBP6,819,000 (quarter
to 30 June 2023 - decrease of GBP387,000 to GBP5,877,000
(6.2%)).
-- Vela's portfolio comprised a total of 15 active investments
(30 June 2023 - 15). Two of these investments were unquoted, twelve
were quoted, and the final investment was the interest in future
royalties from the Covid-19 remedy being developed by St George
Street Capital Limited (which was held in the balance sheet as a
financial asset prior to the exercise of the put option, details of
which were announced by the Company on 1 December 2023).
-- The fair value of the investment portfolio was GBP6,789,000 (30 June 2023 - GBP5,843,000).
-- The change in the value of the investment portfolio reflects:
(i) disposals of investments valued at GBP97,000 at 30 June 2023
(generating a realised profit of GBP5,000); and (ii) a net
unrealised increase in the fair value of the investment portfolio
of GBP1,043 ,000 (quarter to 30 June 2023 - an unrealised loss of
GBP318,000).
-- Vela's cash balances marginally decreased to GBP30,000 as at
30 September 2023 (30 June 2023 - GBP34,000).
*The figures contained within this quarterly investment update
at 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
-- During the quarter Vela sold 150,000 shares in EnSilica plc
("EnSilica"), generating gross proceeds of GBP102,000.
-- In September Tribe Technology PLC ("Tribe Tech") successfully
completed its IPO and as a result Vela is now interested in
3,125,000 ordinary shares in Tribe Tech representing 1.41% of Tribe
Tech's issued share capital.
-- Also in September, Conduit Pharmaceuticals Limited completed
its merger with Murphy Canyon and its shares were listed on NASDAQ
as Conduit Pharmaceuticals Inc. ("Conduit"). Following the listing
on NASDAQ the put option became exercisable. As a result, at 30
September Vela was in a position to exchange its GBP2.75 million
economic interest in AZD1656 for GBP4 million worth of Conduit
shares. This is reflected in the valuation of the investment
portfolio at the quarter end and is the principal reason for the
increase in the value of the portfolio at 30 September 2023. The
put option was exercised subsequent to the quarter end, details of
which were announced on 1 December 2023.
Key developments in investee companies in the quarter
-- Cornerstone FS plc published interim figures which confirmed
the expectations made in May by the CEO, who commented in this
announcement that he "expects to report full year results [for
2023] significantly ahead of market expectations".
-- Kanabo Group Plc ("Kanabo") announced that Kanabo Agritec, a
40% subsidiary, signed a major contract with Tamia Growth S.L.,
described as pivotal in Kanabo's road map.
-- MTI Wireless Edge Ltd. announced it had established a
subsidiary in India to cater to the demand for India's 5G cellular
market.
-- EnSilica announced that a further $2.4m contract had been
agreed with one of its leading customers to develop next generation
advanced networking ASIC and a $7m contract to supply a sensor ASIC
within the e-mobility market.
-- Skillcast Group plc announced its interim results to 30 June
2023 reporting a 15% growth in revenue, driven by an increase in
subscriptions, predominantly from new customers.
-- Igraine plc reported its half year results to 30 June 2023
and remarked that, despite the challenging economic environment, it
was encouraged by ongoing discussions and commercialisation.
-- TruSpine Technologies plc ("TruSpine") published its annual
report for the year ended 29 March 2023.
Developments since 30 September 2023
-- Vela has sold 300,000 shares in Kanabo generating gross proceeds of GBP4,000.
-- Vela has sold 25,000 shares in EnSilica generating gross proceeds of GBP14,000.
-- TruSpine announced that it is making substantive progress in
its efforts to confirm its rights to the intellectual property
inherent in its products.
-- On 30 November 2023 Vela exercised its put option to sell its
economic interest in AZD1656 to Conduit for 1,015,760 Conduit
shares. A s previously announced by the Company, it is the
intention of Vela, subject to the necessary regulatory requirements
of NASDAQ, to realise its holding in Conduit in order to augment
the Company's cash reserves.
Investment portfolio
At 30 September 2023 the Company's portfolio of investments was
valued at GBP6,789,000 and comprised equity or loan interests in
the following 15 companies:
-- Aeristech Limited
-- Community Social Investment Limited (formerly WeShop Limited)
-- Cornerstone FS PLC
-- Ethernity Networks Ltd
-- EnSilica plc
-- Igraine PLC
-- Kanabo Group Plc
-- MTI Wireless Edge Ltd.
-- Mode Global Holdings plc
-- Northcoders Group plc
-- Rural Broadband Solutions PLC
-- Skillcast Group plc
-- St George Street Capital Limited
-- Tribe Technology Group PLC
-- TruSpine Technologies plc
Since the publication of the last quarterly update in September
2023, the Board of Vela has met with representatives of the
following investee companies:
-- Aeristech Limited
-- EnSilica plc
-- Northcoders Group plc
-- Skillcast Group plc
-- St George Street Capital Limited
-- TruSpine Technologies plc
For further information, please contact:
Vela Technologies plc Tel: +44 (0) 7421
Brent Fitzpatrick, Non-Executive Chairman 728875
James Normand, Executive Director
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.
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END
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