TIDMVELA
RNS Number : 4167V
Vela Technologies PLC
03 December 2019
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.
3 December 2019
Vela Technologies plc
("Vela" or the "Company")
Update on investment in WeShop
The Board of Vela notes the commentary on WeShop Limited
("WeShop") in the announcement made by Two Shields Investments PLC
("Two Shields") (AIM: TSI) on 26 November 2019, and an interview
with James Sowerby, CEO of WeShop, on Vox Markets on 26 November
2019. Further information regarding the statement and interview are
provided below.
As also detailed below in this announcement, the Board of Vela
has been considering how to re-focus its investing activities
within the Company's Investing Policy and has determined that this
is an appropriate time to consider the partial or full sale of its
holding in WeShop and would be interested in discussing the
disposal of any or all of its WeShop Shares with any interested
parties at a minimum price of 550 pence per WeShop share.
Vela currently holds 71,429 shares in WeShop (the "WeShop
Shares") representing approximately 1.4% of WeShop's share capital.
Vela originally subscribed for GBP100,000 in May 2014 as part of a
GBP1 million seed funding round.
On 11 November 2019, Two Shields announced an investment of
GBP400,000 in WeShop, at a price of 598 pence per share. Following
this investment Two Shields has a 7.57% shareholding in WeShop.
Extracts from the announcement issued by Two Shields on 26
November 2019 are copied below:
"WeShop is an innovative, digital social network platform
focused on the rapidly growing and highly valuable social
e-commerce sector forecast to become a US$350 billion market over
the mid-term. WeShop's digital platform enhances online shopping
experiences by combining social media's assets of reviews, likes,
and shares with an engaging retail e-commerce offering,
specifically tailored to the individual user. Users benefit from
gaining access to thousands of brands and millions of products on
one platform plus a two-way sharing of ideas with friends to
participate in a rewards system; brands/retailers benefit from
increased sales and awareness.
Led by highly experienced and proven technology and retail
professionals James Sowerby, who previously led Global New Business
Development at Avon Cosmetics, the oldest and one of the most
successful global social selling networks, and non-executive
Chairman, Matthew Hammond who is Group Managing Director and CFO of
mail.ru, one of the largest internet companies in the Russian
speaking market.
As announced on 29 October 2019, WeShop delivered an investor
update and the Board feels it is in the interests of TSI
shareholders to continue to support this exciting business as it
approaches what we believe will be a highly expansive period.
WeShop has also launched phase 1 of its new rewards programme,
designed to drive ongoing engagement and retention of users by
enabling them to earn WeCoins(TM) for creation and distribution of
quality content, shopping through WeShop verified merchants, and
browsing. The WeCoins(TM) can be redeemed with over 100+ redemption
partners, including Uber, Spotify, Just Eat, Amazon, Starbucks and
many others. Phase 1 allows users to redeem their WeCoins(TM) for a
digital voucher. Phase 2 will allow users to redeem their live
WeCoin(TM) balance against products on WeShop, in combination with
cash. This creates a true ecosystem where WeCoins(TM) are earned
and redeemed within the platform.
During the period, TSI invested GBP99,997 into WeShop and
completed a share swap for a total consideration of GBP1,355,468.
Post period end a further investment of GBP400,002 was made and
announced on 11 November 2019 bringing the total TSI shareholding
in WeShop to 7.57%.
The Board will continue to look to increase its exposure into
WeShop as the opportunity arises."
James Sowerby's, interview with Vox Markets on 26 November 2019
can be found here:
https://www.voxmarkets.co.uk/articles/two-shields-investee-weshop-and-alan-green-on-4-stocks-6811c0b/
Further re. Vela's investment in WeShop and rationale for the
proposed sale of WeShop Shares
As detailed in the Chairman's Statement in the 2019 Annual
Report, Vela has had a number of informal discussions with third
parties regarding the possibility of utilising Vela as a reverse
takeover vehicle. In addition, Vela has considered more sizeable
transactions than has been historically the case as an active
investor into listed companies where the market valuation
significantly undervalues the underlying net assets.
As a result, the Board of Vela, has determined that this is an
appropriate time to consider the partial or full sale of its
shareholding in WeShop.
For further information, please contact:
Vela Technologies plc Tel: +44 (0) 7802
262 443
Brent Fitzpatrick, Non-Executive Chairman
Antony Laiker, Director
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.
About WeShop
WeShop is an innovative, digital social network platform focused
on the rapidly growing and highly valuable social e-commerce sector
forecast to become a US$350 billion market over the mid-term.
WeShop's digital platform enhances online shopping experiences by
combining social media's assets of reviews, likes, and shares with
an engaging retail e-commerce offering, specifically tailored to
the individual user. Users benefit from gaining access to thousands
of brands and millions of products on one platform plus a two-way
sharing of ideas with friends to participate in a rewards system;
brands/retailers benefit from increased sales and awareness.
WeShop is led by a highly experienced and proven technology and
retail professionals. James Sowerby, CEO, previously led Global New
Business Development at Avon Cosmetics, the oldest and one of the
most successful global social selling networks, and non-executive
Chairman Matthew Hammond, who is Group Managing Director and CFO of
mail.ru, one of the largest internet companies in the Russian
speaking market.
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END
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