Vela Technologies (AIM:VELA) PLC, the investment company, is considering whether to make an investment of £300,000 in TruSpine, an AQSE-listed medical device company.
TruSpine had a share placing at the end of May and it appears that Vela, which invests in early-stage and pre-flotation disruptive technology firms, was inadvertently signed up by one of its house brokers to take £300,000 of shares, despite the board of Vela not sanctioning this.
Vela has internal controls in place to ensure that any purchase or sale of shares undertaken by it occurs only with the approval of the board, and is making immediate enquiries of all parties involved in the placing to ascertain the validity of any undertakings entered into on its behalf in respect of the placing and to understand what steps need to be taken in connection with the potential investment in TruSpine.
The company said it is minded to pursue an investment of £300,000 in TruSpine, which is focused on the development of spinal stabilisation systems. Any such investment would be made from existing cash resources and would give the company a stake of around 5% in TruSpine.