Vela has announced it has conditionally raised £1.5m by way of a placing to fuel an investment spree for the AIM-listed investment company.
The conditional placing was conducted at 0.09p per share, a premium of around 2.9% of the closing price on 22 February. Warrants are also part of the deal with 833,333,340 warrants issued at a price of 0.125p per share exercisable 18 months from admission.
This essentially sees each subscriber in the placing being issued with 1 placing warrant for every 2 placing shares.
Following deduction of expenses, the net amount raised will be £1.375m.
Vela proposes to use the funds in order to invest in new opportunities as highlighted in today’s announcement:
“The Company has a strong pipeline of new investment opportunities and the Board believes the additional funds to be raised from the Placing will enable the Company to be able to take advantage of new opportunities as and when they arise.”
The conditional placing is subject to shareholder approval at a general meeting on 11 March. Should Vela shareholders agree on the deals of the placing, then the new shares are expected to be issued to AIM on 15 16 march.
Vela currently trades on AIM under the ticker of VELA.