Update re. WeShop Limited

RNS Number : 3682X

Vela Technologies PLC

27 August 2020

 

27 August 2020

Vela Technologies plc

("Vela")

Update re. WeShop Limited

The Board of Vela (AIM: VELA) notes the announcement made today by Two Shields Investments plc regarding a shareholder update issued by WeShop Limited ("WeShop") in relation to completion of a fundraise through the issue of a convertible loan note, and other matters.

Vela currently holds 71,429 shares in WeShop representing approximately 1.4% of WeShop's share capital. Vela originally subscribed for £100,000 in May 2014 as part of a £1 million seed funding round. The Board of Vela welcomes the new funding for WeShop, as detailed below, and continues to seek to dispose of part or all of its holding in WeShop, as announced on 3 December 2019.

Extracts from the shareholder update issued by WeShop are copied below:

WeShop Update 

Highlights include:

·9,000,000 fundraise completed through the issue of a convertible loan note

·Option granted for a further £2,777,777 cash investment

·Board changes including appointment of Yoav Keren, CEO of BrandShield, to the Board.

Financing

The Convertible Loan Note:

WeShop has announced that terms have been agreed, and completion happened on a £9,000,000 convertible loan note. The terms of the loan note are:

·Interest rate of 8% per annum for a 36-month period

·Unsecured from any debenture

·Conversion triggers which include an IPO, an exit or further funding rounds

·Conversion would occur at a 20% discount to the price of the conversion event

Option to acquire 10% for £2,777,777

The lead investor on the convertible loan note has also taken a 6-month option whereby it allows them to invest a further £2,777,777 into the business at a £25m valuation as equity which would give them a 10% stake in WeShop. Details of the Lead investor shall be released in the coming days.

WeShop Board Changes;

On the 13 August, Yoav Keren was appointed to the board of WeShop as Non-Executive Director. Yoav is the founder and CEO of Brandshield. BrandShield is an online threat hunting company, specialized in monitoring, detection and removal of online threats such as phishing attempts, executive impersonation, counterfeit products, trademark infringements and more. BrandShield was established to revolutionize the way companies can protect their digital assets outside their security perimeter.

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/Asha Chotai
Peterhouse Capital Limited  (Joint Broker)	Tel: [phone]
Lucy Williams / Duncan Vasey / Eran Zucker

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 5 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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