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Vela Technologies Sells North Peak Resources Investment – Shares Lower

Sam Boughedda
Sam Boughedda trader
Updated 9 Apr 2021

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Shares of Vela Technologies (LON: VELA) are trading lower on Friday despite the company making a profit from the sale of its investment in North Peak Resources Ltd.

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Vela said that between the 24th of March 2021 and the 6th of April, it disposed of its entire holding of 310,000 shares in North Peak Resources at prices between C$0.70 per share and C$0.745 per share, with an average price of C$0.73 per share generating net proceeds of C$226,032.

The book value of Vela’s holding in North Peak in Vela’s latest published accounts was £53,211. Therefore, the accounts for the year ending 31st of March 2021 are expected to reflect a profit on disposal of £76,900 for the company.

Vela said the net proceeds will be used for further investments and general working capital.

Vela Technologies share price is down 3.27% at 0.0798p despite the profit made from the sale. Thursday’s session saw its shares close at 0.0825p.

The UK-based company now has a current portfolio of ten investments and available cash resources of £2.1 million.

Should you invest in Vela Technologies shares?

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Sam Boughedda
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.