REG - Ashington Innovation - Annual results

Ashington InnovationAnnouncement

30/04/2024 18:30

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RNS Number : 6977M  Ashington Innovation PLC  30 April 2024

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

 

30 April 2024

Ashington Innovation plc

 

("Ashington" or "the Company")

 

Annual results

 

Ashington Innovation plc (LSE: ASHI; FSE: 6FW), a special purpose acquisition
company ("SPAC"), announces its audited results for the 17 months ended 31
December 2023.

 

Management Report:

 

During the period, the Board of Directors worked to assess potential
acquisition targets in the technology, financial technology ("fintech") and
deep technology sectors with the aim of creating a combined business which
will generate increased value for the Company's shareholders.

 

To facilitate this aim, the Company increased its access to capital to fund a
potential acquisition. Ashington's successful IPO on the LSE in June 2023
raised gross proceeds of £809k, valuing the Company at approximately £1.84
million. In August 2023, the Company furthered its access to capital by dual
listing on the Frankfurt Stock Exchange, with the intention of enhancing
liquidity and facilitating further investment in the Company. The FSE is the
largest of Germany's eight stock exchanges and is responsible for
approximately 90 percent of all securities traded in Germany, making it an
excellent location for Ashington to reach European investors.

 

During this period, Ashington strengthened its management team. In October
2023, Grant Duthie joined the Board of Directors, and Richard Paolone and
Daniel Nauth in November 2023. The three new non-executive directors bring
impressive corporate and legal experience to the Board across capital markets,
mergers and acquisitions, corporate and securities transactions, regulatory
compliance and beyond.

 

No revenue was generated during the year and a loss before tax of £878k was
incurred, reflecting start-up costs, expenses relating to the IPO as well as
ongoing operating costs. Ashington had net cash of £323k as at 31 December
2023. Based on the directors' assessment of the Company's cash needs and the
availability of financing, the directors consider the Company to be a going
concern and anticipate a fundraising may be required during the year ahead. A
further update will be provided in due course.

 

 

The investment opportunity within the fintech and deep tech sectors remains
strong; fintech revenues are expected to grow approximately three times faster
than those in the traditional banking sector between 2023 and 2028 (source:
McKinsey & Co., 2023). The deep tech sector is similarly well positioned,
with the UK emerging as a hub for the sector. The UK attracted $12.8 billion
in deep tech funding between 2018-2023 including $3.4 billion in 2023 alone
(source: Dealroom, 2023). As such, the Board remains optimistic that it will
secure an acquisition which will generate value for investors.

 

Merger Discussions

 

On 17 August 2023, Ashington signed a non-binding Heads of Terms with Cell
Therapy Ltd. ("Cell Therapy") to acquire 100% of Cell Therapy in an all-share
transaction. On 24 August 2024, the Company signed a further Heads of Terms
with Calon Cardio-Technology Ltd. ("Calon") to acquire 100% of Calon in a
further all-share transaction. Given the market conditions, it became
uncertain that the required funding for the Transaction would be available.
The Board therefore concluded that it was no longer in the best interests of
shareholders to proceed.

 

Ashington is continuing to assess several potential acquisition targets and
will update the market if and when discussions are suitably advanced.

 

In accordance with Listing Rule 9.6.3, the 2023 accounts have been submitted
to the National Storage Mechanism and will shortly be available for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) . The accounts are
available for download from the Company's website
(www.ashingtoninnovation.com).

 

For further information please contact:

 Ashington Innovation plc
 Jason Smart                                                        via Tancredi +44 207 887 7633

 Non-Executive Director
 Tancredi Intelligent Communication

 Media Relations
 Helen Humphrey                                                     +44 7449 226 720

 Charlie Hobbs                                                      +44 7897 557 112

 Neha Dhakal                                                        +44 7915 035 294

 ashington@tancredigroup.com (mailto:ashington@tancredigroup.com)

 

About Ashington Innovation plc

 

Ashington Innovation PLC is a special purpose acquisition company (SPAC),
formed with the intention of acquiring businesses operating in the technology
sector, in particular the financial services technology and deep technology
sectors.

 

The Company believes that in the increasingly fast-changing global environment
there will be an abundance of opportunities to acquire existing businesses in
the technology sector, and in particular businesses that possess and utilise
proprietary technologies and own applicable intellectual property.

 

The Company is not limited to any specific geographic region in identifying
its target companies. www.ashingtoninnovation.com
(http://www.ashingtoninnovation.com) .

 

Notes:

While the financial information included in this preliminary announcement has
been prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards, this announcement does not itself
contain sufficient information to comply with those standards. The Company
expects to publish full financial statements that comply with International
Financial Reporting Standards in April 2024.

 

Forward-looking statements:

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.

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