TIDMVELA
RNS Number : 3908J
Vela Technologies PLC
29 March 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.
29 March 2018
Vela Technologies plc
("Vela" or the "Company")
Further investment of c. GBP150,000 in Portr Limited
Completion by Portr Limited of GBP5.3 million Series A
funding
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 elected to take up its
pre-emption rights in connection with a fundraising round
undertaken by Portr Limited ("Portr") and has invested a further
GBP148,466 in Portr (the "Investment"). Portr is the owner of
Airportr, the app enabled service that allows airline passengers to
check-in bags from home and travel to and through the airport
without their baggage.
The Investment by Vela is part of a Series A funding round which
has been completed by Portr and which has raised GBP5.3 million for
Portr (the "Series A Fundraise"). Investors in the Series A
Fundraise include Stobart Group and Hargreave Hale VCT's. The
Series A Fundraise is the largest funding round undertaken to date
by Portr.
The Series A Fundraise follows a year in which Portr has seen
rapid growth of adoption for its home bag check-in service with
global partner British Airways, and more recently the addition of
American Airlines to the service platform, initially in London.
This progress has seen Airportr repeatedly recognised as a powerful
emerging technology in aviation, creating an integrated and
seamless experience for the passenger, from doorstep to plane door,
while providing handling and operating efficiencies to airlines and
airports.
Portr will use the new funding to increase investment and
development in the following three areas;
-- Continued growth with existing and new airline partners;
including development of deeper integration in direct (airline) and
in-direct (OTA's and GDS) online distribution channels
-- Service expansion to new locations, cities and introduction
of a new family value product for short-haul passengers ahead of
the summer peak volumes
-- New product initiatives to extend automated handling,
routing, tracking and delivery of baggage through to a customers'
end location and international destination
The Company has entered into a subscription agreement with Portr
whereby it agreed to invest GBP148,466 in Portr funded from the
Company's existing cash resources. Vela has taken up it's
pre-emption rights and has subscribed for 37,117 shares in Portr,
at a price of 400 pence per share. Vela's investment has completed
and is unconditional. Following the Investment Vela has now
invested a total of approximately GBP660,000 in cash in Portr
across a number of previous funding rounds.
Following the completion of the Series A Fundraise, and the
conversion by Portr of certain indebtedness, Vela will be
interested in 162,736 shares in Portr representing approximately
3.1 per cent. of Portr's enlarged share capital.
Based on filings at Companies House, for the year ended 26
December 2016, Portr generated a loss of GBP4,824,329 and as at 26
December 2016 had net assets of GBP1,099,651.
Randel Darby, CEO of Portr, commented:
"We have made significant changes in the last year, to focus on
the B2B2C airline model. Meanwhile we have brought our London
logistics in-house, which, together with our increase in volumes
has propelled our delivery activities to positive margins by the
end of our first year.
We're working on exciting plans with our airline and airport
partners to demonstrate the significant operational benefits of
city check-in services in helping to distribute and manage capacity
at peak times, presenting a viable and flexible alternative to
spending on infrastructure.
We're (also) launching a value proposition before the summer
peak, specifically for groups, You'll be able to check in the whole
family's bags from home, for less than the cost of adding a single
bag with your airline."
Warwick Brady, CEO of Stobart Group commented:
"We are pleased to continue supporting AirPortr in its ambitious
plans to revolutionise the way passengers transport their luggage
to and from airports. With London airports at peak capacity, it is
becoming increasingly important to focus on innovative solutions to
reduce the hassle of baggage check and improve passenger
experience. Stobart Group are looking forward to continuing its
partnership with AirPortr and to highlight the benefits to
airports, airlines and passengers of using sound logistics
solutions to improve the way we all travel."
Antony Laiker, Executive Director of Vela, commented:
"Completion of this Series A funding is a significant event for
Portr, incorporating both the support of Stobart Group as a
substantial shareholder and the strong endorsement of the Airportr
platform.
Airline passengers are fully aware of the issues of managing bag
capacity, particularly at busy times. In addition, airlines are now
understanding the benefit of check-in services away from the
airport itself. Airportr will be part of this fundamental change to
"bag free" travel. We look forward to further news from Airportr
regarding their airline and airport partners"
For further information, please contact:
Vela Technologies plc Tel: +44 (0) 7802 262
443
Brent Fitzpatrick, Non-Executive
Chairman
Antony Laiker, Director
Allenby Capital Limited Tel: +44 (0) 20 3328 5656
(Nominated Adviser)
Nick Athanas/Katrina Perez/Asha
Chotai
Smaller Company Capital Tel: +44 (0) 20 3651 2910
Limited
(Broker)
Rupert Williams/Jeremy
Woodgate
This information is provided by RNS
The company news service from the London Stock Exchange
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