IamFire Plc WeShop Update and Extension of Conversion Date of CLNs in WeShop
December 04 2023 - 3:09AM
UK Regulatory
TIDMFIRE
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY IAMFIRE PLC TO
CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION
(EU) NO. 596/2014, AS AMENDED ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT
VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN.
IamFire plc
AQSE: FIRE
("FIRE", "IamFire" or the "Company")
WeShop Update
Extension of Conversion Date of CLNs in WeShop
IamFire plc is pleased to provide an update on progress within its primary
portfolio company, WeShop Holdings Limited ("WeShop"), showing an increase of
240% in annualised sales figures through the platform for the 3 months ending in
November 2023 compared to the 3 months ending in May 2023. This increase is
accompanied by a 52% increase in user numbers, showing strong growth and an
increase in spend per customer.
As announced on 21 September 2023, FIRE's holding in WeShop has a see-through
value of £22.5m based on WeShop's last fundraising at £4.76 per share and
assuming that the Convertible Loan Notes outlined below convert to equity.
Taking in to account a Discounted Capital Bond ("DCB") liability of around
£5.5m, the £17m equity value equates to a net asset value ("NAV") per share in
FIRE of around 4.9p per share from this investment holding alone.
IamFire is also pleased to announce that it has extended the date at which the
CLNs convert from 18 May 2024 to 24 November 2024, to coincide with the maturity
of a DCB with Hawk Investment Holdings Limited.
WeShop Update Highlights
· £112.4m Annualised Gross Merchant Value ("GMV") based on £28.1m of sales in
the 3 months to 30 November 2023. 240% increase as at 30 November 2023, on the
3 months to 31 May 2023 figure (£33m).
· Over 505,000 total purchases through the platform to date, with an increase
of 180% since 31 May 2023 to 30 November 2023 (c.180,000 for the six months to
30 November 2023).
· £66.2m of cumulative sales through the platform as at 30 November 2023,
with an increase of 230% since 31 May 2023 (c.£20.1m).
· Over 350,000 user downloads for the WeShop platform as at 30 November 2023,
an increase of 52% since 31 May 2023.
For ease of reference the figures above are contained in the following table:
31-May 31-Aug-23 30-Nov-23 % change (from May 23)
-23
Annualised GMV (£M) 33.0 72.0 112.4 +240%
(trailing 3 months)
Cumulative GMV (£M) 20.1 38.1 66.2 +230%%
(end-period)
No. of Transactions 180,000 315,000 505,000 +180%
(end-period,
cumulative)
User Downloads (end 230,000 290,000 c.350,000 +52%
-period, cumulative)
John Taylor, Executive Director of IamFire, said:
"The growth figures for WeShop over the 6 months from May 2023 are phenomenal
and indicate the viral nature of the WeShop proposition. Although the increase
in user numbers is highly impressive, the increase in sales volumes indicate
that those users are using the platform more. This bodes very well for the
stickiness of customers and indicates that churn rates are likely to be low.
WeShop represents the vast majority of IamFire's Net Asset Value and we will
seek to continue to support WeShop going forward as it expands. 2024 will
likely prove to be the seminal year in WeShop's ambition to gain its own listing
and should it do so, IamFire will be in a position to provide our shareholders
with a transformational liquidity event."
IamFire Investments in WeShop and Community Social Investment Limited ("CSIL")
IamFire currently holds £6.85m of Convertible Loan Notes ("CLNs") directly
in WeShop. It also holds the right to subscribe for a further £0.9m in CLNs.
Should the current CLNs convert, it would result in FIRE holding 2,758,333
shares in WeShop (prior to any further CLN subscription).
IamFire also holds approximately 23.6% of the issued share capital of CSIL which
in turns holds 8,333,333 shares in WeShop as its only asset. FIRE believes that
these shares will be distributed in specie to CSIL shareholders in due course.
The aggregate holdings of IamFire in relation to WeShop and CSIL are outlined in
the following table:
Instrument Amount Held Conversion Conversion Notes
Price Date
CLN in £4m £3 per 24 Nov Convertible
WeShop share in 2024 into
WeShop 1,333,333
shares in
WeShop.
CLN in £2.85m £2 per 24 Nov Convertible
WeShop share in 2024 into
WeShop 1,425,000
shares in
WeShop. £0.9m
capacity
remaining in
CLN option.
Equity 2,452,675 shares23.5% of CSIL holds
Holding in CSIL issued share capital 8,333,333
CSIL shares in
WeShop. In
specie
distribution
would result
in approx.
1,950,000
shares in
WeShop to
IamFire.
There are currently 28,669,415 shares in issue in WeShop. Should the CLNs in
the table convert and CSIL conducts a distribution in specie of its WeShop
shares, then IamFire would hold approximately 4,718,333 shares in WeShop
representing approximately 15% prior to any further share issuance.
Based on the most recent fundraising in WeShop outlined above, the value of the
resultant IamFire holdings in WeShop would be £22.5m. Deducting around £5.5m
for a Discounted Capital Bond in FIRE, held by Hawk Investment Holdings Ltd, the
value of this investment can be derived at £17m, representing 4.9p of Net Asset
Value per IamFire share currently in issue.
Extension of Conversion Date of CLNs in WeShop Holdings Limited
IamFire announced on 23 May 2023 that it had extended the date on which it has
the right to convert its CLNs in to shares in WeShop to 18 May 2024. Given that
it has recently agreed to extend the maturity date of the DCB held by Hawk
Holdings to 24 November 2024, the Board felt it prudent to extend both the
conversion date of the CLNs, and accordingly the maturity date has been extended
to 24 November 2024, and this is also the agreed date up to which it can
exercise its right to subscribe for an additional £900k of these CLNs.
REGULATORY ANNOUNCEMENT ENDS
Enquiries:
Company:
info@iamfireplc.com
Corporate Advisor:
Peterhouse Capital Limited
Guy Miller/Narisha Ragoonanthun: + 44 (0) 20 7469 0930 (Direct)
Corporate Broker
Tennyson Securities Limited
Peter Krens: +44 (0) 20 7186 9033 (Direct)
About WeShop:
WeShop is a social commerce platform that allows users to shop and help each
other by reviewing, asking about or recommending products. It is affiliated to
the vast majority of the UK's top 1,000 online retailers. Instead of rewarding
the users with cashback, discount codes or vouchers, WeShop allows users to earn
shares in the business.
WeShop intends to be 90% owned by its community of users, so the more users
shop, recommend and refer friends the more shares they will own in WeShop and
the more they will share in its financial success. Users of WeShop buy products
from retailers through the platform, as they would normally, but in doing so
they will earn shares in WeShop and benefit from aggregation as a community and
the revenue streams generated from affiliate programs, data, promotion and
advertising that the community through WeShop will generate.
WeShop intends to be the first truly shoppable social network owned by its
community of users. By creating a disruptive online model it hopes to create a
retail revolution which shares the financial success of online businesses with
the users of those online businesses whose data, transactions and engagement has
created them in the first place.
This information was brought to you by Cision http://news.cision.com
END
(END) Dow Jones Newswires
December 04, 2023 04:09 ET (09:09 GMT)
WeCap (AQSE:WCAP)
Historical Stock Chart
From Nov 2024 to Dec 2024
WeCap (AQSE:WCAP)
Historical Stock Chart
From Dec 2023 to Dec 2024
