Vela Technologies shares surge +20%

Vela Technologies shares (LON: VELA) surged on Tuesday after the group posted interim results for the six months ended 30 September 2020.

The investment company has invested £2.35m into a company that is developing a Coronavirus treatment for people living with diabetes.

Vela Technologies will be working with the medical charity, St George Street, which will recruit people for a clinical trial.

In the six months to the end of September, the group reported a pre-tax loss of £63,000 – this is compared to the loss of £258,000 a year previously.

Brent Fitzpatrick, the company’s chairman, said in a statement: “I am pleased to report that Vela is now positioned on a stronger financial footing with an investment portfolio of six businesses and a strong pipeline of near-term investment opportunities.

“Our company is now debt-free, well capitalised with a portfolio of six investments and cash on deposit, at 30 September 2020, of £1,628,000. The cash at 30 September 2020 includes proceeds of £925,480 generated as a result of the exercise of warrants during September.

“The Board is currently considering a number of investment opportunities in line with its existing investing policy and certain of these potential new investments are at an advanced stage of due diligence, documentation and/or completion. The Board anticipates a lively second half of the financial year and announcements will be made by the Company at the appropriate time.”

Vela Technologies shares (LON: VELA) shot up over 20% on Tuesday’s opening and are currently trading +12% at 0,072 (0951GMT).

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Safiya Bashir
Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.