LONDON - Vela Technologies PLC (AIM: VELA), an investing company specializing in early-stage and pre-IPO disruptive technology investments, has disclosed a significant fair value loss in its investment portfolio for the six-month period ending on September 30, 2024. The company’s financial health has been impacted primarily by the decline in the share price of Conduit Pharmaceuticals Inc., a key investment.
During the reported period, Vela Technologies experienced a decrease in total assets to £3.804 million from £6.291 million as of March 31, 2024. The company's cash and cash equivalents stood at £103,000, a slight increase from the £54,000 reported on March 31, 2024. Despite the sale of its holdings in MTI Wireless Edge Limited and partial holdings in EnSilica plc and Skillcast Group plc at a profit, the overall portfolio suffered due to the underperformance of Conduit Pharmaceuticals.
The company’s investment in Conduit Pharmaceuticals has been considerably affected by irregularities related to a director’s undisclosed collateral pledge agreements, which have been linked to the substantial decline in Conduit’s share price. As a result, Vela's board expressed disappointment with the investment's performance and the frustrations of shareholders.
Vela has continued to adjust its investment strategy by selling part of its holdings and making new investments. The company issued shares valued at £300,000 to Hamak Gold Limited in exchange for a convertible loan note. However, Vela has yet to receive the scheduled redemption payments from Hamak and is in discussions for a longer-term solution.
The company also made a further investment in Igraine Plc and sold partial holdings in Finseta plc and EnSilica plc after the reporting period, generating gross proceeds of £21,263 and £71,535, respectively.
The Board of Vela Technologies remains cautious but is committed to exploring new investment opportunities in line with its investing policy. The directors have extended gratitude to shareholders for their continued support.
The interim financial results were based on a press release statement by Vela Technologies PLC.
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