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Vela Technologies raises £1.5m to fund investment opportunities

Tue 23 February 2021 12:57 | A A A

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(Sharecast News) - Vela Technologies announced on Tuesday that it has conditionally raised £1.5m, to take advantage of a number of investment opportunities.

The AIM-traded firm said the fundraising was taking place via a placing of 1,666,666,667 new shares at a price of 0.09p each.

It said the placing remained subject to shareholder approval at a general meeting.

Vela noted that the placing price represented a premium of about 2.9% to the closing mid-market price of 0.0875p per share on 22 February.

It said it would also issue 833,333,340 warrants to subscribe for new shares at a price of 0.125p each, exercisable for 18 months from admission, resulting in each subscriber in the placing being issued with one warrant for each two placing shares subscribed for.

The board said the net proceeds would be used to take advantage of investment opportunities, and for general working capital purposes.

It added that the new shares would represent around 12.1% of Vela's share capital, as enlarged by the placing.

"The company has a strong pipeline of new investment opportunities, and the board believes the net proceeds from the placing, estimated to be £1.375m, will enable the company to be able to take advantage of new investment opportunities as and when they arise," the directors said in their statement.

"As at the date of this announcement, the company holds investments in nine investee companies and has cash resources of £1.4m."

At 1237 GMT, shares in Vela Technologies were up 1.49% at 0.09p.

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