(Alliance News) - Shares in Summerway Capital PLC jumped after it set out amendments to its investment policy on Tuesday, while announcing a raft of changes to its board as well as a share placing.
Shares in Summerway closed 42% higher at 165.00p each on Wednesday in London.
Summerway listed on the London Stock Exchange in October 2018, with the goal of acquiring businesses in the household and consumer goods sector with enterprise valuations of between GBP20 million and GBP100 million.
On Tuesday, the company said its revised investment policy will focus on investment and acquisition opportunities across the software, software-as-a-service, digital technologies and services sectors. It added its process to identify suitable opportunities will include a review of opportunities where its directors have existing relationships, as well as a methodical review of small cap opportunities across the UK and EU markets.
"Following substantial implementation of its investing policy, the company may cease to be an investing company under AIM rules and be eligible for an alternative classification, or may choose to continue to focus on acquiring businesses and manage its portfolio in line with a stated investment policy," it added
Summerway Capital also announced the resignations of Chair Alexander Anton and Director Mark Farmiloe, both of whom were members of the board upon the company's listing.
Anton will be replaced by Vinodka Murria, who is currently a non-executive director of IT infrastructure technology and services provider Softcat PLC, distribution firm Bunzl PLC and law firm DWF Group PLC.
Concurrently with Murria's hire, she has agreed to buy 500,000 shares at 85 pence each from a selling shareholder and subscribe for 1.9 million new shares at 88p each by way of a direct subscription. Following completion of the transactions, worth GBP2.1 million in total, Murria will have a 30% stake.
Summerway also announced the hire of Paul Gibson and Anthony Morris as directors.
Gibson has held the board position of chief operating officer of Advanced Computer Software Group PLC prior to its acquisition by Vista Equity Partners.
Morris is a co-founder and director of Tessera Investment Management, a strategic advisory firm which provides specialist transaction support to organisations undertaking corporate development activity. He is currently a non-executive director of brick manufacturer Michelmersh Brick Holdings PLC.
By Ife Taiwo; ifetaiwo@alliancenews.com
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