Acquisition of a 28.8% interest in Igraine plc

RNS Number : 6299G

Vela Technologies PLC

30 March 2022

 

30 March 2022

Vela Technologies plc

("Vela" or "the Company")

Acquisition of a 28.8% interest in Igraine plc

The Board of Vela (AIM: VELA), an AIM-quoted investing company focused on early-stage and pre-IPO disruptive technology investments, is pleased to announce the acquisition of 23,928,080 ordinary shares, representing 28.82% of the issued share capital, in Igraine plc ("Igraine"), the Aquis-listed med-tech investment company ( https://www.aquis.eu/aquis-stock-exchange/member?securityidaqse=KING ) ("the Acquisition" or "Investment").

Highlights

· Vela becomes the largest single shareholder in Igraine

· 28.82% stake acquired on 30 March 2022 for cash consideration of £430,705 at 1.8p per Igraine share

· The Investment is part of Vela's growing commitment to be more active in identifying opportunities for 'fast-track' returns for Vela shareholders from the Company's investment portfolio

Rationale for the Investment

Vela's investing policy includes investing in companies and special situations which have discernible potential to deliver returns for shareholders. Against a background of difficult capital markets, the Vela Board recognises the need to be more active in developing and delivering the means to achieve such returns.

With a healthy cash balance and as a co-investor alongside Vela in the AZD1656 Arcadia drug development programme, the Board of Vela believes that Igraine represents a compelling investment opportunity for the Company.

Information on Igraine

Igraine's business strategy is to source and develop break-through innovative technologies and commercially attractive discoveries in the health, med-tech and life science sectors worldwide.

Igraine's latest unaudited balance sheet at 30 June 2021 shows net liabilities of £58,000 and an unaudited loss before tax for the period ended 30 June 2021 of £133,000. At a general meeting held on 28 June 2021, Igraine shareholders agreed to the issue of subscription shares for gross proceeds of £2.0 million and a 2% investment in Excalibur Medicines Ltd ("EML"), a subsidiary of Excalibur Healthcare Services Ltd ("Excalibur").

EML has secured exclusive rights to and owns the patents on a drug, AZD1656, which is being developed as a therapeutic treatment for diabetics suffering from COVID-19 and other respiratory diseases. Simultaneously with its investment in EML, Igraine additionally acquired a right to co-invest in all healthcare and life-science investment opportunities sourced or invested in by Excalibur. Excalibur was founded and is wholly owned by Professor Sir Christopher Evans OBE, a renowned bio-tech entrepreneur.

Based on publicly available information, Vela has calculated that the net asset value per share of Igraine today exceeds the price that it has paid for the shares that it has acquired; and the Board of Vela is therefore of the view that Igraine's current quoted market price is not a true reflection of the underlying value of the business.

Brent Fitzpatrick, Non-Executive Chairman of Vela, holds 372,499 ordinary shares in Igraine, representing 0.449% of the current issued share capital of Igraine.

Details of the Acquisition

Vela has today acquired 23,928,080 ordinary shares in Igraine at a price of 1.8p per share from a number of existing investors in Igraine for £430,705, paid in cash from the Company's existing cash resources.

Following the Investment, Vela now has a portfolio of 12 investments.

For further information, please contact:

Vela Technologies plc Brent Fitzpatrick, Non-Executive Chairman James Normand, Executive Director	Tel: [phone]
Allenby Capital Limited (Nominated Adviser and Joint Broker)	Tel: [phone]
Nick Athanas/Piers Shimwell
Peterhouse Capital Limited (Joint Broker)	Tel: [phone]
Lucy Williams / Duncan Vasey / Eran Zucker

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.

 

END

 

 

UPDSDEFESEESEFD