The Vela Technologies PLC (LON: VELA) share price traded sideways after announcing an additional investment in Northcoders Group Plc (LON: CODE) worth £99,999. The investment company bought an additional 33,333 shares worth £3 as part of the latest capital raise by Northcoders.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The muted investor reaction to the additional investment was due to the performance of Vela’s current investments, which have seen its shares fall 55.19% this year. However, Northcoders has been an excellent investment this year as its share price has risen 32.35%.
Northcoders is a tech company that provides coding and software development training for companies and individuals seeking to improve their skills. The company has established itself as a leading provider of coding courses delivered virtually or in a physical class setting.
The company continues to lead the industry in bridging the digital skills gap in the UK through its courses and has become the provider of choice for businesses and individuals seeking to acquire additional skills in the digital arena.
Northcoders is operating in a sector with significant growth potential but is still a startup that made a £0.52 million loss in the year ended 31 December 2021. The company’s net assets stood at £2.44 million as of 30 June 2022.
Vela Technologies now owns 349,999 ordinary shares in Northcoders representing 4.55% of the company’s enlarged share capital following the latest share placement, which raised £2.1 million (before expenses) for the company.
Vela continues to invest in early-stage and pre-IPO disruptive technology companies, which are at greater risk of going bankrupt than already established companies. Still, the potential returns from such businesses are usually more significant than those from established firms.
*This is not investment advice.
Vela Technologies share price.
The Vela Technologies share price traded sideways after an additional investment in Northcoders.