Business
Update re. Secured Bonds 2020 and Company Update
Update re. Secured Bonds 2020 and Company Update.
About this update from Caledonian Holdings Plc.
[{"type":"text","content":"\n \nRNS Number : 0656D Vela Technologies PLC 14 February 2020 \n\nPrior 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.\n \n \nVela Technologies plc\n(\"Vela\" or the \"Company\")\n \nUpdate re. Secured Bonds 2020\n \nand Company Update\n \n \nThe Board of Vela (AIM: VELA) today provides an update on its £550,000 10% Secured Bonds 2020 (the \"Bonds\") and an update on the future strategy for the Company.\n \nKey points\n \n· Supported by the Security Trustee and principal Bondholders, Vela has extended the repayment date on the Bonds by 6 months to August 2020\n· The Board continues to progress discussions with a view to effecting a corporate transaction, which may result in a substantial investment or an acquisition to utilise Vela as a reverse takeover vehicle\n \nBond Instrument\n \nIn February 2017 the Company completed the issuance of the Bonds to a number of sophisticated and high net worth Bondholders (the \"Bondholders\") via UK Bond Network, now part of Pello Capital. The Bonds are due for repayment on 17 February 2020. Further details on the terms of the Bonds are set out in the Company's announcement of 17 February 2017.\n \nCertain Bondholders are also existing shareholders in Vela including Kevin Sinclair (a substantial shareholder who subscribed for £100,000 of the Bonds), Scott Fletcher (a substantial shareholder who subscribed for £95,000 of the Bonds) and Antony Laiker (Executive Director of the Company who, as announced on 20 December 2019, inherited £50,000 of the Bonds in December 2019 following a grant of probate) (the \"Principal Bondholders\").\n \nAs at 30 September 2019, the Company had cash balances of £120,000 and investments with a total book value of £2.14 million. As such, the Company is currently only able to repay the outstanding principal on the Bonds in full by liquidating certain of its investments. The Directors do not believe this is in the best interests of the Company. \n \nOn 13 February 2020, Jade Stat...