TIDMVELA
RNS Number : 9893Q
Vela Technologies PLC
11 June 2018
11 June 2018
Vela Technologies plc
("Vela")
Update re. investment in Argo Blockchain plc
The Board of Vela (AIM: VELA), the investing company focused on
early-stage and pre-IPO disruptive technology investments, notes
the announcement made today by Argo Blockchain plc ("Argo")
regarding its intention to seek a listing of its ordinary shares to
the Standard Listing segment of the Official List and admission to
trading on the London Stock Exchange's main market for listed
securities ("Admission"). In conjunction with Admission, Argo
intends to raise GBP20 million (before expenses). The flotation is
expected to value Argo at approximately GBP40 million and will make
it the first crypto-mining company to join the London stock
market.
The Board of Vela also notes Argo's announcement regarding the
launch of a new crypto-mining service for mainstream consumers.
Argo's solution is mining-as-a-service (MaaS), which enables users
to commence crypto-mining without the need to have significant
computing expertise or acquire complex and expensive hardware and
have the frustration of setting up their own systems. Users can
start mining for digital currencies within minutes of accessing
Argo's website on a mobile phone or computer. The service is being
launched in conjunction with Admission.
In February 2018 Vela subscribed for 2,500,000 shares in Argo,
at a price of 8 pence per share for a consideration of GBP200,000.
The investment by the Vela was part of a larger fundraise which was
completed by Argo and raised GBP2.5 million for the company on a
pre-money valuation of GBP8.0 million. Vela's current interest in
Argo is approximately 1.9 per cent. of Argo's current issued share
capital.
Extracts from both announcements are copied below.
For further information, please contact:
Vela Technologies plc
Brent Fitzpatrick, Non-Executive
Chairman Tel: +44 (0) 7802
Antony Laiker, Director 262 443
Allenby Capital Limited
(Nominated Adviser)
Nick Athanas/Asha Chotai Tel: +44 (0) 20 3328
5656
Smaller Company Capital Limited
(Broker)
Rupert Williams/Jeremy Woodgate Tel: +44 (0) 20 3651
2910
Argo Blockchain PLC - Intention to Float on the London Stock
Exchange
Argo Blockchain PLC (Argo or the Company), a UK-based provider
of cryptocurrency mining services, is pleased to announce its
intention to seek a listing of its ordinary shares to the Standard
Listing segment of the Official List and admission to trading on
the London Stock Exchange's main market for listed securities and a
conditional placing to raise approximately GBP20m before
expenses.
The flotation is expected to value Argo at approximately GBP40m
and will make it the first crypto-mining company to join the London
stock market.
Mirabaud Securities is acting as Sole Bookrunner and Corporate
Broker for the Company.
Proceeds from the share placing will be deployed to expand the
company's services and fund its growth.Jonathan Bixby, executive
chairman of Argo, said: "A London stock market listing will provide
Argo with the profile, credibility and access to global capital to
drive our growth and help us establish a leadership position in the
long term."
Company Highlights
Argo was established in 2017 to develop a global datacentre
management business facilitating cryptocurrency Mining as a Service
(MaaS) to be available at scale to anyone, anywhere in the
world.
The service went live on 11 June 2018 and initially covers four
cryptocurrencies, being Bitcoin Gold, Ethereum, Ethereum Classic
and Zcash. These cryptocurrencies had a total market capitalisation
of over $63bn on June 08th 2018. The Company may, in future, add or
remove cryptocurrencies from its service offerings.
The Directors believe that there is significant pent-up demand
for a user-friendly and cost-effective MaaS that enables users to
procure mining services without the up-front capital commitment to
purchase hardware or the necessary technical skills to operate a
home mining farm.
Argo's system allows the user to configure and manage the
cryptocurrency they wish to mine, which mining pool they wish to
contribute to and how they would like to store the generated coins.
The Company does not intend to offer any form of cryptocurrency
custody service, and therefore the user will be responsible for the
storage and security of their cryptocurrency.
Overview of the business
Argo Blockchain plc was formed as a global datacentre management
business facilitating cryptocurrency Mining as a Service (MaaS) to
be rapidly available at scale to anyone, anywhere in the world.
MaaS is analogous to the cloud computing opportunity of the last
10 years, whereby Amazon's EC2 and AWS and Microsoft's AZURE were
able to provide customers with near instantaneous storage,
networking and database services on a global scale from numerous
locations.
The Company's MaaS offering is a cloud based platform which
enables users to onboard, access and manage the mining services
they need via the internet. Clients use an "on demand" or "pay for
what you use" model. A user subscribes for a prescribed amount of
mining capacity ("pay for what you use") which is available, on
demand, through access to state of the art cryptocurrency mining
capability on a large scale. This capacity will be eventually
managed and maintained by the Company in several locations across
the world and the Company is initially mining in Quebec Canada.
By accessing hardware and software made available by the
Company, the user is able to commence cryptocurrency mining more
quickly and cheaper than should a user be required to build their
own physical server platform, install and configure the necessary
software and obtain network connectivity, which could take several
months, by which time the client's mining advantage could be
obsolete.
Argo has started initial operations in Canada and China and
plans to establish a global footprint over the long term. As at the
latest practicable date prior to publication of this document, the
Company has 7 racks, each comprising 10 servers with 8 GPUs in each
in operation and available to users. It has an experienced Board of
Directors, who believe that Argo Blockchain is positioned to
benefit from anticipated growth in the market for MaaS, the
continued adoption of cloud computing and the opportunity for
accelerated growth through operations in a number of
jurisdictions.
Key executives and board members
Jonathan Bixby, Executive Chairman, is a serial entrepreneur,
active investor, board member, and speaker. Jonathan has helped
raise over $100M in venture capital and has been involved in over
10 successful exits. In addition to his investing efforts in
Stanley Park Ventures, Jonathan has been active in the crypto world
since 2012 as an investor and entrepreneur. Jonathan was previously
an entrepreneur-in-residence at Vancouver-based startup accelerator
GrowLab. Prior to GrowLab, he was the CEO and cofounder of both
Strangeloop Networks, a networking company focused on providing a
hardware appliance in data centres to speed up web based
properties, which was acquired by Radware (RDWR) and IronPoint, a
technology based provider of Content Management Services which was
acquired by the Active Network (ACTV). He is a Business in
Vancouver Top 40 Under 40 award recipient and is an investor and
advisor to numerous other networking and technology companies,
including but not limited to TSO Logic, Rubikloud, Neurio and
Layerboom.
Mike Edwards, Executive Director and President, has started and
invested in technology companies for over 20 years. Mike invests in
smart people with big ideas, and thrives on helping other
entrepreneurs turn a napkin sketch into a prosperous business. He
has invested in more than 40 technology startups including Punch'd,
which was sold to Google, Summify, which was acquired by Twitter,
Wander, which was acquired by Yahoo, AreaConnect, which was sold to
Marchex, Wylie Interactive, which was acquired by Zynga, and
PasswordBox, which was acquired by Intel.
Mike is actively involved in growing and supporting the crypto
currency startup community and connecting local entrepreneurs with
the right investors, mentors and influencers in Silicon Valley, New
York, Europe and Asia. Mike co-founded Growlab, a seed stage
accelerator focussing on consumer facing digital product, which
later merged with Extreme Startups to create Canada's Highline
accelerator, and co-founded and is a board member of Creative Labs,
a venture capital backed startup foundry that builds consumer
technology companies by leveraging the Creative Artist Agency's
access to talent and audience.
Timothy Le Druillenec, Executive director and CFO, is a Fellow
of the Chartered Institute of Management Accountants and has
provided management consultancy and accounting services to a number
of public and private companies over many years in some cases
fulfilling the role of director and/or company secretary. He has
acted in this capacity for several AIM companies and also companies
listed on the Main Market and he is currently a director of
Dukemount Capital Plc. Most recently Timothy was the finance
director and company secretary of Hemogeynx Pharmaceuticals PLC.
From 2005 to 2012, he was CEO of Richards Walford & Company
Ltd, a fine wine importer, until it was sold to Berry Bros. &
Rudd. Prior to that, from 1995 to 2004, he was the group finance
director and company secretary of Pacific Media Plc, a Main Market
company, and during that time occupied the same roles at Bella
Media Plc, an AIM listed company.
Gil Penchina, Non-Executive Director is an experienced investor
who has invested in LinkedIn, PayPal, Cruise Automotive, Dollar
Shave Club, Hooked, Wealthfront, AngelList, Indiegogo, Fastly and
others. Gil is currently a partner at Ridge Ventures, formerly IDG
Ventures USA. Prior to this, Gil was a board member at Fastly, the
CEO of Wikia.com, a wiki hosting service which derived its revenue
from advertising and sold content and became a top 50 web property
and previously worked for eBay where he held a number of roles
progressing from Manager in Business Development to VP and General
Manager, International with responsibility for France, Italy,
Spain, Poland and Eastern Europe and Expansion in Europe.
ENDS
Argo Blockchain PLC - Argo launches new crypto-mining service
for mainstream consumers
-- Launch is timed with a flotation on the London Stock Exchange to raise new money for growth
-- Low-cost subscription service aims to fulfil global demand for mining
June 11th 2018, London, UK: Argo, a UK-Canadian venture, is set
to transform crypto-mining with the launch today of a new low-cost,
flexible and easy-to-use service for users.
The service is aimed at addressing pent-up demand from users who
want to benefit from mining digital currencies but have been
put-off by its complexity and significant up-front cost.
The company's solution is mining-as-a-service (MaaS), which
enables users to commence crypto-mining without the need to have
significant computing expertise or acquire complex and expensive
hardware and have the frustration of setting up their own systems.
Users can start mining for digital currencies within minutes of
accessing Argo's website on a mobile phone or computer.
The launch comes as the company separately announced plans for a
flotation on the London Stock Exchange to raise substantial new
money to drive its expansion.
Using state-of-the-art computing hardware and mining software,
the Argo platform also saves time and vastly improves
user-experience.
Argo's system was developed by a team of experienced technology
experts including its co-founders Jonathan Bixby and Mike
Edwards.
Mr Bixby said: "We have launched this service to take the pain
and heartache out of participating in the biggest new technology
breakthrough since the launch of the internet."
Mr Edwards said: "Setting up a computer rig to mine
cryptocurrency is challenging, inefficient and expensive. I knew
that we had to change the game and democratise the process so that
crypto-mining could become a mainstream consumer activity."
The service is available to adults with a credit card for an
introductory subscription fee as low as US$25 (GBP18) per month.
Users have a choice to mine four digital currencies: Bitcoin Gold,
Ethereum, Ethereum Classic and Zcash. Miners choose contracts on a
monthly renewable basis.
Argo is headquartered in London, UK, with its initial data
centre located in Quebec, Canada.
ENDS
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END
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