TIDMNFT
RNS Number : 7195H
NFT Investments PLC
08 April 2022
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014, as retained as part of
the law of England and Wales. Upon the publication of this
announcement via the Regulatory Information Service, this inside
information is now considered to be in the public domain.
Press Release
08 April 2022
NFT Investments PLC
("NFT Investments" or "The Company"")
Annual results and restoration of trading
NFT Investments PLC (AQSE: NFT), an incubator specialising in
the market for non-fungible tokens ("NFTs"), announces its audited
results for the 12 months ended 31 December 2021.
Highlights
-- Raised GBP35m before expenses through a flotation on the
Aquis Stock Exchange Growth Market ("AQSE"), a record for
AQSE, on 16 April 2021.
-- Made seven investments and one exit in early-stage growth
technology and media businesses engaged in NFTs and digital
assets totalling approximately GBP5.8m.
-- A GBP1.73m gain on investment in Kodoku Studios Ltd. ("Kudoku
Studios"), an NFT-focused gaming company, following its
takeover.
-- Established significant positions in the following cryptocurrencies:
BNB, Bitcoin, Ether, XBD, FLOW and DOT.
-- Filed an application for listing on Canada's NEO Exchange
on 8 December 2021.
-- Net asset value amounted to GBP34.38m, equivalent to 3.43p
per share, as at 31 December 2021 comprising cash and cash
equivalents of GBP21.9m and net book value of investments
including cryptocurrencies of GBP12.5m.
Update on proposed transaction and restoration of trading
On 24 January 2022, the Company signed a non-binding letter of
intent for the proposed acquisition of Pluto Digital PLC ("Pluto
Digital") for a consideration of GBP96m to be satisfied in NFT
shares, subject to shareholder approval. NFT Investments' shares
were suspended from trading pending conclusion of the
discussions.
After careful consideration, the Company announces today that it
will not proceed with the proposed acquisition of Pluto Digital at
this time. The Company will continue to evaluate other
opportunities in the NFT sector that it believes will be accretive
to shareholder value. NFT Investments' shares will return to
trading at 08:00am (BST) today.
Outlook
-- The NFT sector continues to enjoy strong growth as digital
assets gain increasing popularity with collectors and investors
as a new asset class.
-- The Company is well positioned to take advantage of the
recent market correction in the blockchain and digital assets
sectors by investing at attractive valuations.
Commenting on the results, Jonathan Bixby, Executive Chairman of
NFT Investments , said:
"Since listing in April last year, NFT Investments has made
considerable progress in implementing its investment strategy.
Despite volatile market conditions we secured a stake in seven
companies that have high growth potential and are equipped to make
an impact on the blockchain sector. At the same, we also took the
opportunity to realise significant gains from one investment.
"The NFT sector continues to show strong growth and we have a
cash-rich balance sheet to take advantage of new investment
opportunities to generate long term value for shareholders and
deliver a sustained increase in net asset value, which currently
amounts to 3.43p per share."
The Directors of NFT Investments accept responsibility for this
announcement.
For further information please contact:
NFT Investments
Jonathan Bixby via Tancredi +44 207 887 7633
Executive Chairman
Neil Thapar
Investor Relations +44 7876 455 323
------------------------------
First Sentinel
------------------------------
Corporate Adviser
Brian Stockbridge +44 7876 888 011
------------------------------
Tennyson Securities
------------------------------
Corporate Broker
Peter Krens +44 207 186 9030
------------------------------
Novum Securities
------------------------------
Corporate Broker
Colin Rowbury
Jon Belliss +44 207 399 9427
------------------------------
Tancredi Intelligent Communication
Media Relations
------------------------------
Gabriela Amaya Garcia
Edward Daly +44 7915 035 294
Charlie Hobbs +44 7861 430 057
nftinvestments@tancredigroup.com +44 7897 557 112
------------------------------
About NFT Investments:
NFT Investments PLC is an incubator specialising in the market
for non-fungible tokens ("NFTs") and is the first ever NFT vehicle
to list in a major jurisdiction worldwide. The Company invests in a
diversified portfolio of NFTs, cryptocurrency, and/or in companies
or funds which have exposure to NFT or blockchain technology. The
Company's leadership team have an extensive track record in the
cryptocurrency sector and previously founded Argo Blockchain PLC, a
global crypto miner. NFT Investments is headquartered in London, UK
and its shares are listed on the Aquis Stock Exchange Growth Market
under the ticker symbol NFT. https://www.nftinvest.pro/
Chairman's statement
Introduction
I am delighted to report NFT Investments' first full year
results as a publicly listed company since its stock market debut
on AQSE on 16 April 2021, noting that the period under review
covers approximately nine months activity as a quoted plc.
A total of GBP35m before expenses was raised at the IPO,
significantly higher than the Company's original plans, and a
record for a new issue on AQSE.
The flotation came at a time of burgeoning global interest in
the NFT sector and provided the Company with a strong capital base
to invest in and nurture a range of innovative NFT ventures with
the purpose of delivering long term capital gains for our
investors. These businesses are applying potentially disruptive
technologies spawned by the blockchain and digital revolution.
The Company made a commitment to move quickly to invest its
funds within the first 12 months of its flotation. We have done as
promised. Despite volatile market conditions, the Board and its
advisory panel evaluated a wide range of opportunities in
accordance with the Company's investment criteria and due diligence
process while maintaining a highly selective and prudent
policy.
This culminated with seven investments for an outlay of
approximately GBP5.8m plus the establishment of a portfolio of
cryptocurrencies valued at GBP6.9m at the end of the year. While
investing with the aim of generating significant gains over the
long term, our investment in Kodoku Studios has already produced
349% gain as a result of its takeover by Pioneer Media Holdings
Inc. ("Pioneer Media") in November last year for GBP2.225m in cash
and shares.
There was no revenue during the period as the Company was in
start-up phase. A loss before tax of GBP2.8m (H1 2020: GBP0.04m)
was incurred in the year, reflecting costs related to the valuation
of warrants issued, the start-up of the business, two separate
fund-raising rounds including the IPO, as well as operational
expenses.
The Company also ended the year with a strong and liquid balance
sheet with cash and cash equivalents of GBP21.9m as at 31 December
2021. Our robust financial position means that we are well placed
to consider new opportunities at attractive valuations.
After careful consideration we have decided to terminate our
discussions for the acquisition of Pluto Digital. However, the
Company will continue to explore other exciting opportunities to
create sustained long-term value for shareholders.
I would like to take this opportunity to thank all our
shareholders for their support last year and look forward to
updating them on our discussions in due course.
Jonathan Bixby, Executive Chairman
Market opportunity
The NFT market has dramatically increased in both value and
popularity in the past year. In January 2021, sales of NFTs on the
largest NFT trading platform OpenSea totalled just US$8m. In August
2021 alone, sales reached more than US$3 billion. In January 2022,
OpenSea reported that over US$5 billion had been spent on NFTs that
month.
Overall, users spent more than US$44 billion on NFT marketplaces
and collections in 2021, according to data from Chainalysis, a
blockchain data platform. These figures were not just from a few
large trades inflating the market, but most transactions were under
US$10,000. (Source: Chainanalysis, 2021, Report Preview: The 2021
NFT Market Explained [Updated 1/13/22]).
While the majority of NFT sales were at modest prices, some have
sold at values that are comparable with traditional art. For
example, in November 2021, Human One by Beeple sold for almost
US$30 million. The highest price for an NFT sale ever was reached
in December 2021, when Pak's The Merge was bought by a collection
of 30,000 investors for a combined value of US$91.8 million.
Operational review
During the period the Company made seven investments, described
below:
-- US$1m was invested in AEON International Ltd., a leading
developer of cutting-edge technology for the luxury fashion
industry.
-- US$0.7m was invested into Blimp Technologies Inc., a first-of-its-kind,
decentralised real estate collaboration and search platform,
incorporated in Canada.
-- CAN$0.1m was invested in Big Whale Labs, a start-up venture
which is using Web3.0 technologies to create a decentralised
social network platform.
-- US$1.4m was invested into Sturdy Exchange, a marketplace
to display, collect and trade NFTs created by artists and
performers, via Hex Capital Ltd., a venture capital firm
that invests in early-stage crypto assets and blockchain
companies.
-- US$0.25m was invested into Afterparty Inc., a platform for
creators to engage with their fans and generate revenues
by selling "token-gated" virtual events and sell digital
merchandise.
-- US$1m was invested in NFT Studios Ltd., a film production
company run by Niels Juul, a well-known Hollywood producer,
funding movies exclusively through NFTs.
-- GBP0.5m invested in Kodoku Studios, an innovative NFT-gaming
company for a 25% stake which was subsequently sold in exchange
for approximately GBP0.125m cash and a 3% stake in Pioneer
Media Holdings Inc., an AQSE-listed company. Based on Pioneer
Media's closing share price of 107p dated 31 December 2021,
the stake is worth GBP2.14m and has generated a GBP1.73m
gain on the Company's investment in Kodoku Studios.
Outlook
The NFT industry is growing rapidly, and the Company sees
significant opportunities to create value for investors as the
Board believes that the NFT opportunity is the first example of
blockchain monetising at scale and that NFTs are the future of
digital ownership and commerce.
Despite the volatility in trading conditions in the
cryptocurrency markets, excellent progress is being made to execute
on the investment strategy and the Directors continue to evaluate a
significant number of exciting new investment opportunities.
As a result, NFT Investments is well positioned to take
advantage of the recent correction in the blockchain and digital
asset sectors by investing at attractive valuations when investment
conditions stabilise.
Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2021
Year ended 31.12.21 Period
3.3.20
to 31.12.20
GBP GBP
Revenue
Profit on sale of investment 1,602,444 -
Loss on disposal of crypto assets (205,580) -
Administrative expenses (1,220,850) (39,705)
Share based payments (2,147,242) -
-------------------
Operating loss (1,101,378) (39,705)
Gain on revaluation of investments 208,208 -
Loss on revaluation of crypto assets (1,067,146) -
Finance income 115 1
Loss before tax (2,830,051) (39,704)
Tax - -
(Loss)/profit after taxation (2,830,051) (39,704)
Other comprehensive income - -
Total comprehensive income for the year (2,830,051) (39,704)
------------------- ------------
Earnings per share attributable to the equity owners of the company (pence):
Basic loss per share (0.38) (0.04)
Diluted (loss)/earnings per share (0.38) (0.04)
The notes contained in the Company's Annual Report form part of
these financial statements.
Statement of Financial Position
For the year ended 31 December 2021
31.12.21 31.12.20
GBP GBP
Assets
Non-Current assets
Intangible assets 6,917,916 -
Investments 5,559,308 -
12,477,224 -
------------ ---------
Current assets
Trade and other receivables 125,765 110,200
Cash and cash equivalents 21,903,724 55,096
22,029,489 165,296
------------ ---------
Total assets 34,506,713 165,296
============ =========
Equity and liabilities
Current liabilities
Trade and other payables 124,427 5,000
Net current liabilities 124,427 5,000
------------ ---------
Equity
Share capital 1,003,000 110,000
Share premium 33,323,133 90,000
Share based payment reserve 2,925,908 -
Retained losses (2,869,755) (39,704)
Total equity 34,382,286 160,296
------------ ---------
Total equity and liabilities 34,506,713 165,296
============ =========
The notes contained in the Company's Annual Report form part of
these financial statements.
The financial statements were approved by the Board of Directors
on 22 March 2022 and were signed on its behalf by:
Nicholas Lyth
Director
The financial information set out in this announcement does not
constitute statutory accounts. This financial information has been
extracted from the audited full accounts of the Company for the
year ended 31 December 2021. The Company does not declare a
dividend for the period.
The full Annual Report of the Company will be available on the
Company's website: www.nftinvest.pro . The Company's Annual General
Meeting will be convened in due course.
The Directors of the Company accept responsibility for the
contents of this announcement.
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