AIQ Limited Full Year Results and Publication of Annual Report (9772Q)

TIDMAIQ

RNS Number : 9772Q

AIQ Limited

25 February 2019

25 February 2019

AIQ Limited

("AIQ" or the "Company")

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.

Summary

   -- GBP4.0 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 GBP367,000 (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 GBP654,276 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 GBP4.1 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."

Enquiries

 
 AIQ Limited                               [phone] 
 Graham Duncan, Chairman 
 
 VSA Capital Limited (Financial Adviser 
  & Corporate Broker)                      [phone] 
 Andrew Raca 
 
 Luther Pendragon (Media Relations) 
  Claire Norbury                           [phone] 
 

Introduction

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 GBP4.0 million (net proceeds of approximately GBP3.6 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 GBP115,000 (gross of expenses) by way of a placing of new Ordinary Shares and, in June 2018, approximately GBP252,000 (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.

Financial Review

The Company's cash balances at 31 October 2018 totaled GBP4.1 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 GBP654,276. The Company did generate any revenues and the majority of the loss reflects the transaction costs of GBP438,096 associated with the Company's Standard Listing and fundraisings as well as day-to-day administrative expenses of GBP381,806, partially offset by net foreign exchange gains of GBP147,078.

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.

Dividends

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

 
 
                                                    Period from 
                                                11 October 2017 
                                                             to 
   Continuing operations                        31 October 2018 
 
                                                            GBP 
  Administrative expenses                             (381,806) 
  Transaction costs                                   (438,096) 
  Gains on foreign exchange (net)                       147,078 
  Operating loss                                      (672,824) 
 
  Finance income                                         18,548 
  Loss before taxation                                (654,276) 
  Taxation                                                    - 
                                              ----------------- 
  Total comprehensive loss attributable 
  to equity holders of the Company for 
  the period                                          (654,276) 
                                              ================= 
 
  Loss per share - basic and diluted 
   (GBP per share)                                      (0.016) 
 
 

There is no other comprehensive income for the period.

 
 STATEMENT OF FINANCIAL POSITION 
 
 
 As at 31 October 2018 
                                    31 October 2018 
 
                                                GBP 
 Assets 
 Current assets 
 Prepayments and other 
  receivables                                15,708 
 Cash and cash equivalents                4,103,928 
                                   ---------------- 
 Total current assets                     4,119,636 
                                   ---------------- 
 Total assets                             4,119,636 
                                   ---------------- 
 
   Equity and liabilities 
 Capital and reserves 
 Ordinary shares                            518,394 
 Share premium                            3,848,420 
 Accumulated losses                       (654,276) 
                                   ---------------- 
 Total equity                             3,712,538 
                                   ---------------- 
 
 Liabilities 
 Current liabilities 
 Accruals and other payables                118,287 
 Amounts due to a director                  288,811 
 Total current liabilities                  407,098 
                                   ---------------- 
 
 Total equity and liabilities             4,119,636 
                                   ---------------- 
 

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)

Director

STATEMENT OF CHANGES IN EQUITY

 
 For the period from 11 October 2017 to 31 October 2018 
 
 
                              Share     Share premium   Accumulated   Total equity 
                              capital                      losses 
                               GBP           GBP            GBP           GBP 
 
   On incorporation               152          -                  -            152 
 Total comprehensive 
  loss for the financial 
  period                            -               -     (654,276)      (654,276) 
 Issue of shares during 
  the period                  518,242       3,848,420             -      4,366,662 
 Balance at 31 October 
  2018                        518,394       3,848,420     (654,276)      3,712,538 
                            ---------  --------------  ------------  ------------- 
 
 
 STATEMENT OF CASH FLOWS 
                                                  Period from 
                                              11 October 2017 
                                                           to 
                                              31 October 2018 
                                                          GBP 
 Cash flows from operating activities 
 Loss before taxation                               (654,276) 
 Adjustment for:- 
 Interest income                                     (18,548) 
 Gain on foreign exchange                           (147,078) 
                                            ----------------- 
 Operating loss before working 
  capital changes                                   (819,902) 
 Increase in receivables                             (15,708) 
 Increase in payables                                 118,287 
 Increase in amount owing to a 
  director                                            288,811 
                                            ----------------- 
 Cash used in operations                            (428,512) 
 Interest received                                     18,548 
 Net cash used in operating activities              (409,964) 
                                            ----------------- 
 
 Cash flows from financing activities 
 Proceeds from issue of ordinary 
  shares                                            4,366,814 
 Net cash generated from financing 
  activities                                        4,366,814 
                                            ----------------- 
 
 Net increase in cash and cash 
  equivalents                                       3,956,850 
 Cash and cash equivalents at beginning                     - 
  of the period 
 Effect of exchange rates on cash 
  and cash equivalents                                147,078 
 
   Cash and cash equivalents at end 
   of the period                                    4,103,928 
                                            ----------------- 
 
 

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February 25, 2019 02:22 ET (07:22 GMT)