Vela Technologies (LON:VELA) Further Investment in Argo Blockchain

Antony Laiker, Executive Director of Vela Technologies, commented: “We look forward to discussing and understanding the future thoughts and intentions of Argo Blockchain directly with the Argo directors in the near future.

In the meantime, the Vela board believe that the opportunity of investing in a company at a 40 per cent. discount to a meaningful net cash asset base and with little drain on those assets, is a rare opportunity.”

Further Investment in Argo Blockchain

Further to the announcement issued by Argo Blockchain on 15 February 2019 of a strategy review, Vela Technologies purchased a further 500,000 shares in Argo Blockchain plc (“Argo” or “Argo Blockchain”) on 15 February 2019 at an average price of 3.072 pence per share, for a total cost of £15,553.00 (the “Investment”).

Whilst the future direction of Argo Blockchain may seem unclear at this stage the company has made a decision that is expected to benefit all shareholders. Since 30 November 2018 Argo has maintained a net cash position of approximately £15 million, equating to close to 5 pence per share. Furthermore, the costs to Argo of ending their existing mining-as-a service customer contracts should be nominal as these contracts operate on a monthly rolling basis and, based on current prices, selective crypto-mining still offers a return albeit not at the levels experienced previously.

The Investment by Vela Technologies has been funded from its existing cash resources. Following completion of the Investment, Vela Technologies is interested in 3,000,000 shares in Argo Blockchain representing approximately 1.02 per cent. of Argo Blockchain’s current issued share capital.

The announcement released by Argo Blockchain on 15 February 2019 can be found here: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/ARB/13970333.html

 

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