Vela Technologies PLC Proposed Investment (7621Y)
08 December 2017 - 6:01PM
UK Regulatory
TIDMVELA
RNS Number : 7621Y
Vela Technologies PLC
08 December 2017
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
8 December 2017
Vela Technologies plc
("Vela" or the "Company")
Proposed investment in blockchain technology company
The Board of Vela (AIM: VELA), the investing company focused on
early-stage and pre-IPO disruptive technology investments, is
pleased to announce that the Company has entered into a conditional
agreement to invest GBP200,589 to acquire a minority equity stake
in BlockchainK2 Corp. ("BlockchainK2") (the "Proposed Investment").
BlockchainK2 is a cryptocurrency and blockchain platform that
offers mining exposure and proprietary software as a service (SAAS)
blockchain solutions with leading industry partners. The Proposed
Investment will be funded from Vela's existing cash resources.
In November 2017 African Hydrocarbons Inc. ("AHI") (NFK.H), a
company listed on the NEX board of the TSX Venture Exchange in
Canada, announced that AHI would seek to complete a "change of
business" transaction (the "COB Transaction") pursuant to the
policies of the TSX Venture Exchange with the result that upon
completion AHI would become a blockchain technology company with an
initial focus on mining cryptocurrencies and be re-named
BlockchainK2 Corp.. The COB Transaction is conditional, inter alia,
on AHI raising gross proceeds of not less than C$2,000,000 pursuant
to a private placement and Vela's Proposed Investment is part of
this private placement. Subject to certain conditions being met,
including completion of AHI's private placement and the company
meeting the applicable listing requirements of the TSX Venture
Exchange as a technology issuer, it is expected that the COB
Transaction will complete in early 2018.
Upon completion of the COB Transaction AHI (to be re-named as
BlockchainK2) intends to acquire no less than C$1.3 million worth
of cryptocurrency mining equipment and employ such technology in a
cryptocurrency mining data centre to be located in North America to
mine bitcoin and other alternative cryptocurrencies.
The investment by Vela will be made into AHI, conditional on the
COB Transaction completing, and on completion Vela will hold a
minority equity stake in BlockchainK2. The funds will be held in an
escrow account and if the COB Transaction is not completed then the
Proposed Investment would not take place and funds would be
returned to Vela. There can be no assurances that the COB
Transaction and the Proposed Investment will be completed.
Details on the COB Transaction were announced by AHI on 23
November 2017 and details on the private placement were announced
by AHI on 24 November 2017. Further details on the COB Transaction
are available at:
https://web.tmxmoney.com/article.php?newsid=4567902538120646&qm_symbol=NFK.H:APH
As at 30 June 2017 AHI had net assets of C$66,203 and for the
year ended 30 September 2016 AHI generated a net loss of
C$344,884.
Further announcements will be made by Vela at the appropriate
time.
For further information, please contact:
Vela Technologies plc
Brent Fitzpatrick, Non-Executive
Chairman Tel: +44 (0) 7802
Antony Laiker, Director 262 443
Allenby Capital Limited
(Nominated Adviser)
Nick Athanas/Katrina Perez/Asha Tel: +44 (0) 20
Chotai 3328 5656
Smaller Company Capital Limited
(Broker)
Rupert Williams/Jeremy Woodgate Tel: +44 (0) 20
3651 2910
This information is provided by RNS
The company news service from the London Stock Exchange
END
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