Two Shields to increase WeShop stake via share swap

Two Shields Investments has signed a share purchase agreement under which certain shareholders of WeShop had conditionally agreed to swap their shares for the issue and allotment of new ordinary shares in Two Shields, it announced on Friday.

The AIM-traded firm said the share swap was conditional upon the shareholders of Two Shields granting the requisite authorities to issue the consideration shares to complete the swap.

It said shareholders would be asked to consider those resolutions at a general meeting in the near future.

Two Shields described WeShop as an “innovative, digital social network platform” focussed on the rapidly-growing and valuable social e-commerce sector, forecast to become a $350bn market over the mid-term.

It said WeShop's digital platform enhanced online shopping experiences, by combining social media's assets of reviews, likes, and shares with an “engaging” retail e-commerce offering, specifically tailored to the individual user.

Users benefitted from gaining access to thousands of brands and millions of products on one platform, as well as a two-way sharing of ideas with friends to participate in a rewards system, while brands and retailers benefited from increased sales and awareness.

Retail partnerships with major brands and retailers including ASOS, Harrods, Nike, Tesco and Boots had already been established, and as a result Two Shields said WeShop had a “firm foundation” for future growth.

On completion of the transaction, Two Shields said it would increase its holding in WeShop from 1.71% to 6.7% of its issued share capital.

It said it would acquire 226,667 shares currently in issue from certain WeShop shareholders, taking its holding to 301,918 shares.

“I am personally delighted that Two Shields Investments is increasing its position as a strategic investor in WeShop,” said WeShop chief executive officer James Sowerby.

“They have demonstrated since their first investment that they are a real partner to the business, working closely with us on our plans.

“It also represents a strong vote of confidence in us as a business and team, and we look forward to working closely with Two Shields on the exciting journey ahead.”

Sowerby said the market opportunity for social commerce was continuing to strengthen, with the “overwhelmingly positive” feedback it had received from users validating the product and approach.

“We are gearing ourselves up for launch in the third quarter of this year, when we will start to realise the potential that social commerce represents.

“Two Shields’ ongoing support will enable us to further invest in user acquisition, growth and the product to ensure we are delivering the best possible end to end user experience.”

Chairman of Two Shields Investments, Andrew Lawley, added that the company’s board was “delighted” to have the opportunity to increase its holding in WeShop, as it continued its development into a “truly global” social commerce company.

“Successful completion of this transaction will follow WeShop's recent announcement in which it highlighted its product and proposition enhancements, its strengthened team, new branding and the agreements of key commercial deals.”