Further Investment in Argo Blockchain

RNS Number : 3930Q

Vela Technologies PLC

18 February 2019

 

18 February 2019

Vela Technologies plc

("Vela Technologies" or the "Company")

Further Investment in Argo Blockchain

Further to the announcement issued by Argo Blockchain on 15 February 2019 of a strategy review, Vela Technologies purchased a further 500,000 shares in Argo Blockchain plc ("Argo" or "Argo Blockchain") on 15 February 2019 at an average price of 3.072 pence per share, for a total cost of £15,553.00 (the "Investment").

Whilst the future direction of Argo Blockchain may seem unclear at this stage the company has made a decision that is expected to  benefit all shareholders.  Since 30 November 2018 Argo has maintained a net cash position of approximately £15 million, equating  to close to 5 pence per share. Furthermore, the costs to Argo of ending their existing mining-as-a service customer contracts should be nominal as these contracts operate on a monthly rolling basis and, based on current prices, selective crypto-mining still offers a return albeit not at the levels experienced previously.

Antony Laiker, Executive Director of Vela Technologies, commented: "We look forward to discussing and understanding the future thoughts and intentions of Argo Blockchain directly with the Argo directors in the near future. In the meantime, the Vela board believe that the opportunity of investing in a company at a 40 per cent. discount to a meaningful net cash asset base and with little drain on those assets, is a rare opportunity."

The Investment by Vela Technologies has been funded from its existing cash resources. Following completion of the Investment, Vela Technologies is interested in 3,000,000 shares in Argo Blockchain representing approximately 1.02 per cent. of Argo Blockchain's current issued share capital.

The announcement released by Argo Blockchain on 15 February 2019 can be found here: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/ARB/13970333.html

For further information, please contact:

Vela Technologies plc
Brent Fitzpatrick, Non-Executive Chairman Antony Laiker, Director	Tel: [phone]
Allenby Capital Limited (Nominated Adviser) Nick Athanas/Asha Chotai	Tel: [phone]
Smaller Company Capital Limited (Broker) Rupert Williams/Jeremy Woodgate	Tel: [phone]

About Vela Technologies

Vela Technologies (AIM: VELA), is an investing company focused on early stage and pre-IPO long term disruptive technology investments. There are currently 12 investments in the portfolio which either have developed ways of utilising technology or developing technology with a view to disrupting the businesses or sector in which they operate. More recently, Vela Technologies has also started to focus on existing listed companies where valuations may offer additional opportunities. 

 

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