Full Year Results and Publication of Annual Report
AIQ (LSE: AIQ), a special purpose acquisition company ("SPAC") formed to undertake one or more acquisitions of a company or business in the e-commerce sector, announces its results for the period from the incorporation of the Company on 11 October 2017 to 31 October 2018.
£4.0 million (gross of expenses) raised through a subscription on admission to the Official List of the London Stock Exchange in January 2018
Raised a further £367,000 (gross of expenses), in aggregate, through a placing and oversubscribed open offer
The Board has been active in its search for acquisition opportunities and reviewed a number of potential candidates in the e-commerce, social media and artificial intelligence sectors
Pre-tax loss of £654,276 for the period to 31 October 2018 - primarily based on IPO-related costs and expenditure on the implementation of the Company's investment strategy
Strong cash position of £4.1 million as at 31 October 2018
Basic loss per share of 1.6 pence
Graham Duncan, Chairman of AIQ, commented:
"I am pleased to present our first annual results following our listing in January 2018. We have been active in our search for acquisitions and continue to review a number of opportunities in the e-commerce, social media and artificial intelligence sectors, within the UK, Europe and Asia. During the year, we were also successful in raising further capital.
"On behalf of the Board, I would like to thank our shareholders for their support and we very much look forward to updating the market at the earliest opportunity regarding progress in our execution on our investment strategy. With the growth in the global e-commerce markets showing no signs of abating, and a strong balance sheet, we are well-positioned to execute on our targets and deliver shareholder value."
+44(0)754 900 5681
Graham Duncan, Chairman
VSA Capital Limited (Financial Adviser & Corporate Broker)
+44(0)20 3005 5000
Luther Pendragon (Media Relations)
+44(0)20 7618 9100
AIQ was formed as a special purpose acquisition company ("SPAC") to undertake one or more acquisitions of a company or businesses involved in the e-commerce sector. The Company raised gross proceeds of approximately £4.0 million (net proceeds of approximately £3.6 million) by way of a subscription from its founding directors and other investors and its Ordinary Shares were admitted to trading on the Official List of the London Stock Exchange (by way of a Standard Listing) ("Admission") on 9 January 2018.
In April 2018, the Company raised a further £115,000 (gross of expenses) by way of a placing of new Ordinary Shares and, in June 2018, approximately £252,000 (gross of expenses) through an open offer. These funds were raised to provide additional capital for acquisitions and to increase liquidity in the Company's shares.
Since Admission, the Board has been active in its search for acquisition opportunities. The Directors continue to review a number of opportunities in the e-commerce, social media and artificial intelligence sectors, within the UK, Europe and Asia. Discussions are at an exploratory stage and the Company has not yet entered into negotiations with such parties.
The Company's cash balances at 31 October 2018 totaled £4.1 million, derived both from the subscription at the time of Admission to the Standard Listing segment of the London Stock Exchange in January and the subsequent placing and open offer in April and June respectively.
No investments were made during the period to 31 October 2018.
The loss for the period to 31 October 2018 was £654,276. The Company did generate any revenues and the majority of the loss reflects the transaction costs of £438,096 associated with the Company's Standard Listing and fundraisings as well as day-to-day administrative expenses of £381,806, partially offset by net foreign exchange gains of £147,078.
The Company is incorporated in the Cayman Islands, and its activities are subject to taxation at a rate of 0%.
The loss per share was 1.6 pence.
The Directors of AIQ do not propose to declare a dividend for the period ended 31 October 2018.
Growth Strategy and Outlook
The Company's near-term goals are to execute its acquisition strategy in the e-commerce sector. As noted above, the Directors are focusing on businesses located in the UK, Europe and Asia. In particular, the acquisition strategy is focused on identifying businesses or companies that:
are run by a management team with a strong track record of generating growth for shareholders and a proven experienced business record; and/or
have attractive commercial prospects within the e-commerce or social marketing sectors in general; and/or
have existing members or consumers; and/or
are within lower risk jurisdictions, within countries with a strong focus on protecting investors' interests, low sovereign risk and those that encourage and incentivise investment; and/or
have revenues that offer the potential for near-term positive cash flows; and/or
can be funded adequately to be capable of delivery of a realistic plan of achieving credible milestones and significant growth opportunities for shareholders.
The Directors believe that these markets offer significant growth potential. The global e-commerce market is predicted to be worth $2.3 trillion in 2019, with double-digit growth projected until at least 2022. Asia-Pacific remains the largest market globally, where e-commerce is already the leading retail channel thanks to the region's advanced digital infrastructure and propensity to embrace technology innovation. The UK is the largest market in Western Europe for e-commerce sales, despite being only the third-largest retailing market, and this year e-commerce is expected to become the main retail channel in the UK, ahead of its neighbours in Europe.
As a result, the Board remains greatly encouraged by the opportunities with which it is being presented. With the growth in the global e-commerce markets showing no signs of abating, and a strong balance sheet, the Company is well-positioned to execute on its targets and deliver shareholder value. The Board looks forward to updating the market, as applicable, in due course.
Publication of Annual Report
The Company's annual report and accounts for the period from incorporation on 11 October 2017 to 31 October 2018 has been published today and is available on the AIQ website at: http://www.aiqhub.com/web/investor.php.
STATEMENT OF COMPREHENSIVE INCOME
11 October 2017 to
31 October 2018
Gains on foreign exchange (net)
Loss before taxation
Total comprehensive loss attributable to equity holders of the Company for the period
Loss per share - basic and diluted (£ per share)
There is no other comprehensive income for the period.
STATEMENT OF FINANCIAL POSITION
As at 31 October 2018
31 October 2018
Prepayments and other receivables
Cash and cash equivalents
Total current assets
Equity and liabilities
Capital and reserves
Accruals and other payables
Amounts due to a director
Total current liabilities
Total equity and liabilities
The financial statements were approved and authorised for issue by the Board of Directors on 22 February 2019 and signed on its behalf by:
Soon Beng Gee (Nicholas)
STATEMENT OF CHANGES IN EQUITY
For the period from 11 October 2017 to 31 October 2018
Total comprehensive loss for the financial period
Issue of shares during the period
Balance at 31 October 2018
STATEMENT OF CASH FLOWS
11 October 2017 to
31 October 2018
Cash flows from operating activities
Loss before taxation
Gain on foreign exchange
Operating loss before working capital changes
Increase in receivables
Increase in payables
Increase in amount owing to a director
Cash used in operations
Net cash used in operating activities
Cash flows from financing activities
Proceeds from issue of ordinary shares
Net cash generated from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Effect of exchange rates on cash and cash equivalents
Cash and cash equivalents at end of the period
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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