The Vela Technologies PLC (LON: VELA) share price surged 17.6% after releasing an operations update for the quarter that ended 31 December 2022. Some of the report’s highlights include that its gross asset value grew £532,000 (8.3%) to £6,933,000 during the quarter.Â
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Investors cheered the news, as evidenced by Vela’s share price rally. However, on the negative side, Vela’s investee company, Mode Global Holdings, ceased operations after the period ended on 26 January 2023 due to the crypto crash that affected many companies in the crypto industry.Â
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Overall, the quarterly report was primarily positive, given that Vela’s cash balance rose to £864,000 as of 31 December 2022 compared to £646,000 as of 30 September 2022. The increase in cash balances was driven by the company selling part of its Ensilica stake to book a profit.
Vela Technologies’ portfolio company, Ensilica, saw its share price rise significantly during the quarter after releasing upbeat results for the year ended 31 May 2022. The company reported a 77% surge in turnover and won two new contracts worth $3.6 million from existing customers in December.
Furthermore, Vela invested an additional £100,000 in Northcoders to maintain the size of its stake in the company after Northcodrs conducted a secondary placing on 12 November 2022. Northcoders later won a significant contract worth £0.45 million with a Rolls Royce division known as R2 Factory.
Vela’s portfolio comprises thirteen companies, ten of which are listed public companies, two of which are private companies, and one is an interest in future royalties from the Covid-19 remedy developed by St George's Street Capital Limited.
The company sold 565,000 shares in EnSilica plc for a gross sum of £387,000, generating a profit of £133,000. The share sale was the primary driver behind the surge in Vela’s gross asset value and cash reserves.
Other key highlights in the report included the resignation of Antony Laiker from Vela’s board on 20 October 2022. The company also held crucial meetings with representatives from some of its portfolio companies, including Ensilica, MTI Wireless Ltd and Cornerstone FS Plc.
*This is not investment advice.
Vela Technologies’ share price.
The Vela Technologies share price surged 17.65% to trade at 0.020p, from Thursday’s closing price of 0.017p.
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