Supernova Digital - Issue of new shares and proposed return of value

Press Release

4 March 2024

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Supernova Digital Assets PLC

("Supernova" or "the Company")

Corporate update, issue of new shares and proposed return of value to shareholders

Supernova Digital Assets (AQSE: SOL), a company specialising in the Solana ecosystem, is pleased to provide the following update to the Company's corporate strategy.

Proposed return of value to shareholders

The Company's directors have concluded that the correct approach to the widening share price discount to NAV is to return value to shareholders after Phoenix Digital Assets PLC (Aquis: PNIX) completes its tender offer to shareholders, given that the Company currently holds 30,000,000 shares of Phoenix Digital Assets PLC. In the opinion of the directors, shareholder value can best be achieved by the Company trading out the entirety of its current liquid positions at the right time and then returning capital to shareholders.  The Company currently intends to achieve this by purchasing its own shares through a tender offer under which shareholders would have the opportunity to sell shares on a pro-rata basis. A purchase of shares by tender offer would be subject to both shareholder approval and the consent of the Court to a reduction of capital required to create distributable reserves.

This goal of returning shareholder funds will be accompanied by a quarterly trading update in which the Company will publish its holdings of all tokens and prices on the first business day of each quarter beginning on 3 April 2024.

The directors believe that these transparent actions coupled with a willingness to ultimately return capital to shareholders is the best approach given market conditions.

Placing of New Ordinary Shares

The Company is also pleased to announce that it has raised £242,000 (gross) at 0.1p per share. The funds will primarily be used to support the working capital needs of the Company, specifically the application to the court for a reduction in capital, and to further advance the Company's business, aiming to become a value provider for the Solana ecosystem.

As a result of the placing, the Company has issued 242,000,000 new ordinary shares of £0.001 each ("Ordinary Shares") in the Company at a price of 0.1p per share.

Application will be made for the Ordinary Shares, which will rank pari passu with the existing Ordinary Shares in issue, to be admitted to trading on the AQSE Growth Market ("Admission"). Dealings are expected to commence on or around 08 March 2024. 

Total Voting Rights  

Following Admission, the Company's total issued and voting share capital will consist of 1,453,225,646 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury. 

The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

Michael Edwards, Executive Chairman of Supernova Digital Assets, commented: "Our focus has always been on maximising shareholders return and it has become clear that a commitment to returning capital in the best strategy for all shareholders. We are delighted by our timing and the subsequent positioning of our crypto treasury which is now a majority invested in liquid crypto assets like Phoenix Digital Assets (PNIX) and SOL. We remain in service to maximising shareholder return and will keep the market regularly updated moving forward towards the PNIX tender offer." 

The Directors of Supernova Digital Assets PLC take responsibility for this announcement.

For further information please contact:

About Supernova Digital Assets:

The Company will look to identify investment and business building opportunities in the high growth Solana and crypto currency ecosystem. The Board intends to deploy the majority of the Company's cash resources in the acquisition of minority interests in a number of different, yet to be identified, companies in the broad Solana and crypto currency ecosystem, and to apply expertise to the business operations and strategic plans of these companies. The experience, operational skills and contacts of the Board are intended to act as an accelerator to start-ups and early-stage companies to maximise their profit opportunity. It is anticipated that returns to Shareholders will be delivered through a combination of an appreciation in the Company's share price and through the adoption of a progressive dividend policy. The Company's Directors have an established track record, experience and networks in the crypto currency sector, digital assets management, as well as the media industry to drive value creation.