Satsuma Technology PLC (LSE:SATS) shares rose as much as 28% in early trading after the company announced proposed board changes and the sale of 579 Bitcoin, raising net proceeds of about £40mn.
The company said the moves form part of preparations for a planned uplisting to the Financial Conduct Authority’s Official List and trading on the London Stock Exchange’s main market.
The proposed appointments, effective on completion of the uplisting, would see Ranald McGregor-Smith become chair and Clive Carver join as senior independent director and audit committee chair.
Matt Lodge will step down as chair but remain on the board, while Darcy Taylor has resigned as a non-executive director.
McGregor-Smith has spent most of his career advising FTSE 100 and FTSE 250 groups, while Carver has served as chair and non-executive director across several listed companies.
To ensure sufficient liquidity to repay holders of convertible loan notes who have not committed to convert into equity,
Satsuma sold 579 of its 1,199 Bitcoin. The company now holds 620 Bitcoin and about £90 million in cash against a £78 million liability due on 31 December.
Henry K. Elder, chief executive, said: "The board's priority is to ensure the company is positioned for stability and growth.
"Today's sale ensures we have the accessible capital required to execute our long-term strategy.
"The strength of our team and balance sheet will support our vision to become a leading Bitcoin business in the region, delivering long-term value for shareholders."
After an initial burst higher, the stock settled at 0.88p, up 7% and valuing the business at just shy of £5 million.