Vela Completes Bond Issue For Baggage Transfer Start-Up Investment (ALLISS)

LONDON (Alliance News) - Vela Technologies PLC on Friday said it has ...

Alliance News 17 February, 2017 | 8:19PM
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LONDON (Alliance News) - Vela Technologies PLC on Friday said it has now completed the issue of GBP550,000 via secured bonds, with proceeds to be used for a follow-on investment in luggage transfer company Portr Ltd.

Vela first announced plans to raise the funds via a bond issue last month, at which point its said it had received indications from investors looking to subscribe for GBP250,000 of the bonds, with the UK Bond Network Ltd investment platform arranging take-up of the remainder.

On Friday, Vela said the bond auction has closed and it completed the issue, was was structured and arranged by the UK Bond Network. The bonds will pay a coupon of 10% per annum.

Vela noted a substantial shareholder Kevin Sinclar is participating in the bond issue, and has subscribed for GBP100,000 of the bonds, with this transaction deemed a related party transaction. However, on consulting with its nominated adviser, Vela said the participation in the issue was fair and reasonable as far as its shareholders were concerned.

Following completion of its GBP150,000 investment in Portr, Vela will have invested a total of approximately GBP500,000 into the company and will have a 4.3% stake in Portr, equal to around 121,839 shares.

The remaining funds raised will be used for working capital purposes and to enable Vela to take advantage of other investment opportunities as and when they arise.

"We were delighted with the interest shown by investors resulting in the offer closing in under one week following launch of the auction. Vela will now proceed with completing its further GBP150,000 investment in Portr," said Executive Director Antony Laiker.

Shares in Vela were up 8.5% at 0.19 pence on Friday afternoon.

By Hannah Boland;; @Hannaheboland

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Vela Technologies PLC 0.53 GBX 0.38 -
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