NFT Investments PLC - Annual results and restoration of trading
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 £35m 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 £5.8m.

 

·   

A £1.73m 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 £34.38m, equivalent to 3.43p per share, as at 31 December 2021 comprising cash and cash equivalents of £21.9m and net book value of investments including cryptocurrencies of £12.5m.

 

 

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 £96m 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

Executive Chairman

Neil Thapar

Investor Relations

via Tancredi +44 207 887 7633

 

 

+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

Charlie Hobbs

nftinvestments@tancredigroup.com

+44 7915 035 294

+44 7861 430 057

+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 £35m 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 £5.8m plus the establishment of a portfolio of cryptocurrencies valued at £6.9m 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 £2.225m in cash and shares.

 

There was no revenue during the period as the Company was in start-up phase. A loss before tax of £2.8m (H1 2020: £0.04m) 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 £21.9m 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.

 

·   

£0.5m invested in Kodoku Studios, an innovative NFT-gaming company for a 25% stake which was subsequently sold in exchange for approximately £0.125m 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 £2.14m and has generated a £1.73m 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



£


£

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





£


£

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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