Completion of Bond Issue

RNS Number : 2052X
Vela Technologies PLC
17 February 2017
 

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR")

 

 

17 February 2017

 

Vela Technologies plc

("Vela", the "Company" or the "Group")

 

Closing of Bond auction, results of Bond Issue,

related party transaction and

further re. proposed investment in Portr Limited  

 

 

The Board of Vela (AIM: VELA), the investing company focused on early-stage and pre-IPO disruptive technology investments, is pleased to announce that, further to the Company's announcement of 1 February 2017, Vela's bond auction (the "Bond Issue") has closed and the Company has completed the issuance of £550,000 via a secured bond (the "Bonds"). The Bond Issue was structured and arranged by UK Bond Network Limited ("UK Bond Network"), an online bond investment platform (www.ukbondnetwork.com).

 

The Bonds will pay a coupon of 10% per annum and may be repaid: (i) after one year together with all accrued (but unpaid) interest on the amount prepaid; (ii) before its first anniversary, together with the interest that would have accrued up to the first anniversary had the Bonds not been prepaid. The bond will have a term of 3 years. Further details on the terms of the Bond were detailed in the announcement released by the Company on 1 February 2017.

 

The Bonds have been placed with sophisticated and high net worth investors.

 

Kevin Sinclair, a substantial shareholder of Vela, is participating in the Bond Issue and has subscribed for £100,000 of the Bonds. The participation by Kevin Sinclair in the Bond Issue is deemed a related party transaction under the AIM Rules for Companies. The Directors of Vela consider, having consulted with Allenby Capital Limited as the Company's nominated adviser, that the terms of Kevin Sinclair's participation in the Bond Issue are fair and reasonable insofar as the Company's shareholders are concerned.

 

The net proceeds of the Bond Issue will be used by the Company to provide funding for a further follow-on investment of £150,000 (the "Portr Investment") in Portr Limited ("Portr"), the owner of AirPortr, the airline integrated passenger facilitation and baggage transportation service. The balance of funds will be used by the Company for working capital and to enable the Company to take advantage of further investment opportunities as and when they arise.

 

Full details on the Portr Investment, which is expected to complete shortly, was announced by Vela on 1 February 2017. Following completion of the Portr Investment Vela will have invested a total of approximately £500,000 in cash into Portr and will have an interest in 121,839 shares in Portr, equivalent to 4.27 per cent. of Portr's issued share capital as enlarged by its most recent fundraising.

 

Antony Laiker, Executive Director of Vela, commented: "The Board is pleased to have completed this bond issue via UK Bond Network. We were delighted with the interest shown by investors resulting in the offer closing in under one week following launch of the auction. Vela will now proceed with completing its further £150,000 investment in Portr."

 

 

For further information, please contact:

 

Vela Technologies plc


Brent Fitzpatrick, Non-Executive Chairman

Antony Laiker, Director

 

 

Tel: +44 (0) 7802 262 443

 

Allenby Capital Limited

(Nominated Adviser)

Nick Athanas/Katrina Perez/Nick Naylor

 

 

 

Tel: +44 (0) 20 3328 5656

Smaller Company Capital Limited

(Broker)

Rupert Williams/Jeremy Woodgate

 

 

 

Tel: +44 (0) 20 3651 2910

 


 

 


This information is provided by RNS
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