Update on investment in WeShop
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 £100,000 in May 2014 as part of a £1 million seed funding round.
On 11 November 2019, Two Shields announced an investment of £400,000 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™ for creation and distribution of quality content, shopping through WeShop verified merchants, and browsing. The WeCoins™ 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™ for a digital voucher. Phase 2 will allow users to redeem their live WeCoin™ balance against products on WeShop, in combination with cash. This creates a true ecosystem where WeCoins™ are earned and redeemed within the platform.
During the period, TSI invested £99,997 into WeShop and completed a share swap for a total consideration of £1,355,468. Post period end a further investment of £400,002 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:
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:
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Vela Technologies plc |
Tel: +44 (0) 7802 262 443 |
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Brent Fitzpatrick, Non-Executive Chairman Antony Laiker, Director
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Allenby Capital Limited (Nominated Adviser) |
Tel: +44 (0) 20 3328 5656 |
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Nick Athanas/Asha Chotai
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Smaller Company Capital Limited (Broker) |
Tel: +44 (0) 20 3651 2910 |
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Rupert Williams/Jeremy Woodgate |
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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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