Further investment in Mode Global Holdings plc

RNS Number : 8953Q

Vela Technologies PLC

02 March 2021

 

2 March 2021

Vela Technologies plc

("Vela" or "the Company")

Further investment in Mode Global Holdings plc

The Board of Vela (AIM: VELA) announces that it has invested approximately £66,000 in Mode Global Holdings plc ("Mode"), the LSE-listed fintech group, as part of Mode's over-subscribed placing (the "Placing") to raise £6 million to support the continuing rapid growth of Mode's new-breed financial products and services.

As announced by Mode on 26 February 2021, the proceeds of the Placing will provide the company with strong cash reserves to push forward its stated near-term strategic objectives, which will include:

· launching a revolutionary payments solution powered by Open Banking that eliminates the need for cards;

· developing a loyalty and rewards engine that allows merchants to provide personalised offers and rewards, including Bitcoin rewards, to customers;

· integrating the new payment and reward capabilities into the Mode app and relaunching it as the Mode Super App - a next-generation financial super-app with unique payments, investments, loyalty and digital asset features, all in one;‍

· continuing to expand Mode's business client base using global payment and marketing services, such as WeChat and Alipay, connecting more UK and European businesses with a growing consumer base from China and beyond; and

· investing further into Bitcoin to maintain Mode's Bitcoin treasury position at 10% of its total cash reserves.

As announced on 5 October 2020, Vela originally invested £250,000 in Mode, as part of an IPO funding round by Mode which raised £7.5 million.

Details of the subscription

Vela has entered into a subscription agreement with Mode, by which it has invested £66,319.55, funded from the Company's existing cash resources. Vela has subscribed for 120,581 new ordinary shares at a price of £0.55 per ordinary share. Following admission of the shares being issued pursuant to the Placing to trading on the main market of the London Stock Exchange (which is expected to occur on or about 3 March 2021), Vela will hold 620,581 ordinary shares in Mode representing 0.68% of the issued share capital of Mode as enlarged by the Placing.

Information on Mode  

Mode is a UK fintech business listed on the London Stock Exchange, building financial products that will help accelerate the world's transition to a digital financial system combining the best of payments, investment, loyalty, and digital assets.

To date, Mode has launched a next-generation app that allows users to access pound sterling, euro and Bitcoin accounts, all in one place; and to grow their digital assets through one of the highest-yielding and most flexible interest accounts for Bitcoin.

Mode also offers marketing, e-commerce and payments services for UK businesses looking to attract, engage and retain high-value customers globally. Mode is an official partner of WeChat Pay and AliPay.

The company was founded by Jonathan Rowland, Co-founder and Director of UK challenger bank Redwood Bank, the UK's first 100% 'born in the cloud' business bank using Microsoft Azure Platform.

For the year ended 31 December 2019, Mode's revenue was £2,000 and its loss before taxation was £2.6 million. Mode's pro forma net assets as at 31 December 2019 (as set out in the prospectus published by Mode in September 2020) were £8.87 million.

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) Nick Athanas / Asha Chotai	Tel: [phone]
Peterhouse Capital Limited (Joint Broker) Lucy Williams / Duncan Vasey / Eran Zucker	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. 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 listed companies where valuations may offer additional opportunities.

 

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