Business
EIS/VCT qualifying funds update
EIS/VCT qualifying funds update.
About this update from Velocity Composites Plc
[{"type":"text","content":"\n \nRNS Number : 1778C Velocity Composites PLC 14 June 2019 \n\nVelocity Composites PLC\n14 June 2019\nVELOCITY COMPOSITES PLC\n(\"Velocity\", the \"Company\" or the \"Group\")\nEIS/VCT qualifying funds update\n \nVelocity Composites plc, the leading supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, provides the following update on the status of the utilisation of the EIS/VCT qualifying funds of £5.0m that were raised at the time of the Company's admission to trading on AIM in May 2017.\nThe Group has made promising and rapid progress in recent months on new business opportunities in a number of new territories. In particular, as announced on 12 June 2019, the Group is now able to leverage a potentially significant collaboration agreement with Wesco Aircraft Holdings, Inc. (NYSE: WAIR), a leading independent distributor and provider of comprehensive supply chain management services to the global aerospace industry. The agreement will require investment by Velocity in the US (a new territory for the Group).\nThe agreement will allow Velocity to bring its expertise to bear in close physical proximity to a number of significant business opportunities. Physical proximity is considered a critical issue for many aerospace supply chains. While no revenue generating contracts have been signed yet, the Board is confident that by investing in a new and fully resourced facility, co-located at a site with the collaboration partner, the chances of winning major new customers in the current pipeline of commercial opportunities will be significantly enhanced.\nA smaller but still significant investment is also planned for a new site in mainland Europe. The Group has also committed to a significant new Research & Development centre at its head office in Burnley, UK. The US and UK projects are expected to be complete and fully operational in the next twelve months with the timing of the European site in a similar time frame though dependent on customer demand.\nTherefore, the Group now considers that the combination of monies already spent (£3.2m) and monies firmly earmarked for the expenditure noted above (which use is in accordance with the EIS Advance Assurance application made to HMRC) means that the EIS/VCT funding of £5.0m has been employed within the nece...