Vela Technologies (VELA ), a technology-focused investing company, announced this morning it is reinstating its 2019 investment strategy, outlined in the company's 2019 final results.
Per the 2019 strategy, Vela will consider large corporate transactions such as :
1) an acquisition which constitutes a reverse takeover
2) substantial investment by Vela in a trading business
3) an acquisition of a division of a listed/quoted or private company
Vela shares jumped 8% on the announcement in early trading.
Vela had revised its 2019 strategy in 2020 as Covid-19 had made difficult finalisation of large transactions. The company subsequently expanded its existing portfolio, and shareholders approved a revised investing policy, adopted in January 2022.
The board has now decided to reinstate the 2019 policy as it believes the combined value of Vela's listed investments and cash resources may prove attractive to third parties. Additionally, the company believes its 2019 strategy may provide more certainty and upside for shareholders.
Currently, however, Vela is not engaged in discussions on any potential large transactions of the sorts outlined above. If an opportunity is identified, the company will seek shareholder approval and ensure compliance with AIM rules. In the meantime, Vela is continuing to realise funds from sale of existing investments.
Vela's announcement also mentioned July's appointment of Executive Director Antony Laiker, a significant shareholder who had been a board member until 2020.
Vela's portfolio currently comprises of 13 active investments, ten of which are quoted, two are unquoted, and one is interest in future royalties from a Covid-19 drug being developed by St George's Street Capital ("SGSC").
The unaudited value of Vela's investment portfolio was £5.97m on 30 June 2022.
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