Vela Technologies PLC Investment of £200,000 in Argo Blockchain plc (9477D)
February 05 2018 - 7:38AM
UK Regulatory
TIDMVELA
RNS Number : 9477D
Vela Technologies PLC
05 February 2018
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.
5 February 2018
Vela Technologies plc
("Vela" or the "Company")
Investment of GBP200,000 in Argo Blockchain plc
Introduction
The Board of Vela (AIM: VELA), the investing company focused on
early-stage and pre-IPO disruptive technology investments, is
pleased to announce that the Company has invested GBP200,000 to
acquire a minority equity stake in Argo Blockchain plc ("Argo
Blockchain") (the "Investment").
Vela has subscribed for 2,500,000 shares in Argo Blockchain, at
a price of 8 pence per share. The Investment by Vela has been
funded from the Company's existing cash resources. The Investment
by the Company is part of a larger fundraise which was completed by
Argo Blockchain on 2 February 2018 and which raised GBP2.5 million
for the company on a pre-money valuation of GBP8.0 million (the
"Fundraise"). Following completion of the Fundraise, Vela is
interested in approximately 1.9 per cent. of Argo Blockchain's
share capital.
Background to Argo Blockchain
Argo Blockchain is a recently incorporated private company whose
business activities will be focused on Mining as a Service (MaaS)
which enables its users to access blockchain mining rigs and carry
out cryptocurrency mining without the need to acquire, configure
and maintain complex mining hardware. Until now this process has
been reserved for those with a strong technical background and the
resources to buy large amounts of server space.
Cryptocurrencies operate on a distributed ledger called a
blockchain. In order to update the blockchain with transactions
(transfers of cryptocurrency) computing power is needed to
aggregate transactions and form them into blocks which comply with
the rules of the relevant blockchain. Cryptocurrency mining is the
process of aggregating the transactions into blocks and adding them
to the blockchain.
The creation of a block requires the transactions to be
cryptographically 'hashed' which creates a fixed length
alphanumeric string which can easily be verified. This string is
added to the strings for other transactions, and the hash of those
combined transactions must comply with the rules of the relevant
blockchain. Computers are used in cryptocurrency mining to carry
out this hashing process and can be measured in the number of
hashes per second it can provide. This hashing power is the unit of
measurement for Argo Blockchain's contracts.
When a block is added to a blockchain the party or parties
responsible for adding it to the blockchain receives a
cryptocurrency reward. This cryptocurrency reward is funded partly
through transaction fees charged in respect of those transactions
recorded in the new block and partly through the creation of a new
amount of cryptocurrency in accordance with the rules of the
relevant blockchain.
Users of the Argo Blockchain service will pay for a monthly
mining contract up front for which they receive an amount of
hashing power for the period of the contract. Any cryptocurrency
reward received as a result of that hashing power is distributed by
the blockchain network or cryptocurrency mining pool directly to
the user.
Financial information on Argo Blockchain
Argo Blockchain is a newly established company and was
incorporated in England and Wales on 5 December 2017 under the name
of GoSun Blockchain Limited and the company's name was changed to
Argo Blockchain on 20 December 2017. No accounts have been
published as yet by Argo Blockchain and the company is pre-revenue.
Argo Blockchain did not trade until 15 January 2018 and as at 15
January 2018 its net assets were GBP190,000.
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/Asha Chotai 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
The company news service from the London Stock Exchange
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