2 September 2022

Vela Technologies plc

("Vela" or the "Company")

Strategic Update

The Board of Vela Technologies plc (AIM: VELA) today provides the following update with regard to the future investment strategy and direction of the Company.

Following the appointment to the board of Antony Laiker, a significant shareholder in Vela, it has been agreed by the Board that, while not diverting from the Company's underlying investing policy, Vela will consider other corporate transactions whereby Vela's assets might be utilised to effect one or more larger transactions. Such transactions may include, but will not be limited to: i) an acquisition which constitutes a reverse takeover under the AIM Rules for Companies; ii) a substantial investment by Vela in a trading business; or iii) an acquisition of a division of a listed/quoted or private company.

This strategy was previously outlined in the announcement, on 26 September 2019, of Vela's final results for the year ended 31 March 2019. Various discussions took place subsequent to that announcement, however the advent of Covid-19 prevented a transaction being able to be concluded, leading to the reorganisation announced by the Company on 31 July 2020. The Company subsequently expanded its existing investment portfolio and shareholders approved a revised investing policy, which was adopted by the Company on 24 January 2022, further details of which were set out in the Company's announcement of 30 December 2021.

The Board is now reinstating the strategy outlined in the announcement of 26 September 2019. The Board believes that the combined value of Vela's listed investments and cash resources may prove attractive to third parties. In addition, in current market conditions, such a strategy may provide more certainty and potential uplift in the value for Vela shareholders going forward. In the meantime, Vela will continue to realise funds from the sale of existing investments, where appropriate

At this stage, although the Company has had a number of informal discussions and received a number of approaches, it has not engaged in discussions on any potential transactions, as outlined above. In the event that such a transaction is identified, Vela will seek advice from its Nominated Adviser and, if necessary, seek shareholder approval for any changes required to ensure that the Company complies with AIM Rules for Companies.

As outlined in the Company's quarterly investment update released on 22 July 2022, Vela's investment portfolio comprises a total of 13 active investments of which two are unquoted, ten are quoted and the final investment is the interest in future royalties from the Covid-19 drug being developed by St George's Street Capital ("SGSC"). The unaudited fair value of Vela's investment portfolio as at 30 June 2022 was £5.97 million.

The Board will continue to update investors on the portfolio movements and valuation in the Company's quarterly updates, the next one being due for the quarter ended 30 September 2022. 

For further information, please contact:

Vela Technologies plc                                                    Tel: +44 (0) 7421 728875

Brent Fitzpatrick, Non-Executive Chairman                      Email:[email protected]

James Normand, Executive Director

Allenby Capital Limited (Nominated Adviser)            Tel: +44 (0) 20 3328 5656

Nick Athanas / Piers Shimwell

Peterhouse Capital Limited (Broker)                        Tel: +44 (0) 20 7469 0930

Lucy Williams / Duncan Vasey / Eran Zucker / Lauren Riley

About Vela Technologies

Vela Technologies plc (AIM: VELA) is an investing company focused on early stage and pre-IPO long term disruptive technology investments. Vela's investee companies have either developed ways of utilising technology or are developing technology with a view to disrupting the businesses or sector in which they operate. Vela Technologies will also invest in already-listed companies where valuations offer additional opportunities.