Vela Technologies PLC Further Investment in Argo Blockchain (3930Q)
19 February 2019 - 1:45AM
UK Regulatory
TIDMVELA
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 GBP15,553.00 (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 GBP15 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 Tel: +44 (0) 7802 262
Antony Laiker, Director 443
Allenby Capital Limited Tel: +44 (0) 20 3328
(Nominated Adviser) 5656
Nick Athanas/Asha Chotai
Smaller Company Capital Limited Tel: +44 (0) 20 3651
(Broker) 2910
Rupert Williams/Jeremy Woodgate
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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END
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