NFT Investments PLC - Annual Results

Announcement provided by

Phoenix Digital Assets PLC · PNIX

30/06/2023 07:00

RNS Number : 4718E

NFT Investments PLC

30 June 2023

Press Release

30 June 2023

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.

NFT Investments PLC

("NFT Investments" or "the Company"")

Annual results

NFT Investments PLC (AQSE: NFT), an investment firm, announces its audited results for the 12 months ended 31 December 2022.

Comments from Jonathan Bixby, Executive Chairman of NFT Investments:

I am happy to report NFT Investments PLC's full year results for 2022.

As previously highlighted in the most recent announcement on 2 April 2023, the Group is now largely invested with over £27.8m million in liquid crypto (unaudited), categorised as Intangible Assets in the Balance Sheet. The rationale for these investments was based on the historical price of BTC relative to the BTC halving timeframe. The next scheduled halving will take place in April 2024. The historical data suggests that BTC hits new highs approximately three to four months post halving.

The results of the period show a reduction in Total Assets of £9.4m from £34.5m to £25.1m, largely as a result of reduction in valuation of Crypto assets at the height of the "Crypto winter". We are pleased to note that there has been a substantial recovery in Crypto prices since 31 December 2022. By taking the price of Crypto tokens at 28 June 2023 and applying these to our Crypto holdings at 31 December 2022, this shows that the uplift in valuation would be from £15.2m to £23.3m, wiping out all but £1.3m of the reduction in Total Assets in the period.

The Group's Directors have concluded that the correct approach to the widening share price discount to NAV is to return value to shareholders and the current intention is to do so after the BTC halving currently scheduled to take place in April 2024. On 26, May 2023 shareholders approved this return of funds via a tender offer for shares and the Company is in the middle of applying for the consent of the Court for a reduction of capital required to create distributable reserves. This process is expected to be completed in early July 2023.

The Directors believe that these transparent actions coupled with a willingness to ultimately return capital to shareholders is the best approach given the wide discrepancy between the Company's NAV and its current share price.

I would like to take this opportunity to thank all our shareholders for their support last year and look forward to updating them on a quarterly basis as we move towards the halving next year.

Jonathan Bixby, Executive Chairman

The Directors of NFT Investments accept responsibility for this announcement.

This announcement may contain "forward-looking" statements and information relating to the Company. These statements are based on the beliefs of Company management, as well as assumptions made by and information currently available to Company management. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law.

For further information please contact:

NFT Investments
Jonathan Bixby Executive Chairman	+44 7876 888 011
First Sentinel
Corporate Adviser Brian Stockbridge	+44 7876 888 011
Tennyson Securities
Corporate Broker Peter Krens	+44 207 186 9030

About NFT Investments:

NFT Investments PLC is an investment company 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/

Statement of Profit or Loss and Other Comprehensive Income
For the year ended 31 December 2022

	2022	2021
	£	£
Revenue	-	-
Loss on disposal of digital assets and tokens	(65,548)	(205,580)
Profit on sale of investment	-	1,602,444
Fair valuation movements (including impairment and exchange differences) in investments	(2,686,079)	216,398
Fair valuation movements in digital assets and tokens	(5,465,486)	(1,220,095)
	(8,217,113)	393,167
Administrative expenses	(1,556,872)	(3,223,333)
Operating Loss	(9,773,985)	(2,830,166)
Finance income	402,083	115
Loss before and after taxation and total comprehensive loss for the year	(9,371,902)	(2,830,051)

Loss per ordinary share:
Basic loss per share on loss for the year	(0.93)	(0.38)
Diluted loss per share on loss for the year	(0.93)	(0.38)

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 2022

	Group		Company
	2022	2021	2022	2021
	£	£	£	£
Non-Current Assets
Intangible assets	15,448,382	6,917,916	15,448,382	6,917,916
Investments	3,691,186	5,559,308	3,691,187	5,559,308
Total non-current assets	19,139,568	12,477,224	19,139,569	12,477,224
Current Assets
Trade and other receivables	125,765	125,765	157,837	125,765
Cash and cash equivalents	5,847,274	21,903,724	5,815,201	21,903,724
Total current assets	5,973,039	22,029,489	5,973,038	22,029,489
Total assets	25,112,607	34,506,713	25,112,607	34,506,713

Shareholders' equity
Share capital	1,003,000	1,003,000	1,003,000	1,003,000
Share premium	33,323,133	33,323,133	33,323,133	33,323,133
Share based payments reserve	2,925,908	2,925,908	2,925,908	2,925,908
Retained earnings	(12,241,657)	(2,869,755)	(12,241,657)	(2,869,755)
Total shareholders' equity	25,010,384	34,382,286	25,010,384	34,382,286

Current Liabilities
Trade and other payables	102,223	124,427	102,223	124,427
Total liabilities	102,223	124,427	102,223	124,427
Total equity and liabilities	25,112,607	34,506,713	25,112,607	34,506,713

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 28 June 2023 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 2022. 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 Directors of the Company accept responsibility for the contents of this announcement.

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