This announcement contains inside information as stipulated under the UK Market Abuse Regulations ("MAR").

25 February 2021

Vela Technologies plc

("Vela" or "the Company")

£350,000 pre-IPO investment in Aeristech

New investment provides Vela's portfolio with exposure to hydrogen fuel cell market

The Board of Vela (AIM: VELA) announces that it has invested £350,000 in Aeristech Limited ("Aeristech"), a producer of efficient, power-dense compressors for hydrogen fuel cells, as part of Aeristech's £5.1 million pre-IPO funding round.

Further information on Aeristech

Aeristech is a producer and supplier of efficient, power-dense compressors, which are used to maximise the power output and efficiency of hydrogen fuel cells. Aeristech's unique turn-key motor and controller technology provides many benefits for hydrogen cells, including reducing high power switching events, enabling high-speed and high-power motors, reducing heat loss and reducing costs by removing the need for high-cost specialist components.

Aeristech is currently partnered with three leading automotive partners and a number of tier-one suppliers. Several of Aeristech's fuel cell customers are exhibiting strong performance as the hydrogen fuel cell market continues to grow, especially within the energy and transport sectors. The equity funds raised will enable Aeristech to draw down on UK Government grant funding of £9.6 million.

For the twelve months ended 31 March 2020, Aeristech generated revenue of £1.49 million and the loss before taxation was £1.37 million. As at 31 March 2020, Aeristech's net assets were £1.51 million.

Details of the subscription

Vela has entered into a subscription agreement with Aeristech, by which it has invested £350,000 in Aeristech, funded from the Company's existing cash resources. Vela has subscribed for 145,833 new ordinary shares at a price of £2.40 per ordinary share, valuing Aeristech at approximately £37.8 million at the issue price and on a fully diluted post money basis. Following completion of this funding round, Vela holds 0.92% of the fully diluted issued share capital of Aeristech.

In addition, Aeristech has issued Vela with 36,458 warrants with a two-year term, each warrant carrying the right to subscribe for one ordinary share in Aeristech at the issue price of £2.40.

Further to the announcement released by the Company on 23 February 2021, the Board of Vela can confirm that its investment is unconditional following the completion of Aeristech's funding round.

James Normand, Executive Director of Vela, commented:

"Vela is pleased to be investing in Aeristech whose leading technology is increasing the viability of hydrogen fuel cell power, particularly in the automotive and aviation sectors. Together with the government grant funding, this funding round will enable Aeristech to develop its products for application to hydrogen fuel cell solutions for commercial jets, light aircraft and heavy goods vehicles and to broaden its customer base."

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About Vela Technologies

Vela Technologies (AIM: VELA) is an investing company focused on early stage and pre-IPO long term disruptive technology investments. Vela's investee companies have either developed ways of utilising technology or are developing technology with a view to disrupting the businesses or sector in which they operate. Vela Technologies will also invest in listed companies where valuations may offer additional opportunities.