NFT Investments PLC backs out of Pluto Digital PLC takeover

NFT Investments PLC (AQSE:NFT) began trading on the AQSE market again today after the company announced that it is backing out of the proposed acquisition of Pluto Digital PLC.

The investor in non-fungible token (NFT) companies signed a non-binding letter in January for the proposed purchase of Pluto Digital, a crypto technology company, for £96mln to be paid in NFT shares.

Shares were suspended from trading until the deal was concluded, but today the London-listed firm said it had decided, after careful consideration, not to pursue it further.

It added that it will continue to evaluate other opportunities in the NFT sector that it believes will be accretive to shareholder value.

NFT Investments also reported on its year-end results. As of 31 December 2021, it had a net asset value of £34.38mln, with cash and cash equivalents totalling £21.9mln, and net book value of investments worth £12.5mln.

The company made seven investments worth roughly £5.8mln as well as one exit from early-stage growth technology businesses engaged in NFTs and digital assets.

It also established “significant positions” in cryptocurrencies, including Bitcoin and BNB among others, a statement said.

NFT Investments made a £1.73mln gain on its investment in a 25% holding in Koduku Studios Ltd, an NFT-focused gaming company, which was subsequently sold to Pioneer Media Holdings Inc.

The company is also seeking a dual listing, filing an application for Canada’s NEO exchange in December last year.

Looking forward, it said it is “well positioned to take advantage of recent market correction” in the blockchain and digital assets sectors.

“The NFT sector continues to show strong growth and we have a cash-rich balance sheet to take advantage of new investment opportunities to generate long-term value for shareholders and deliver a sustained increase in net asset value,” said executive chairman Jonathan Bixby.