Last checked at 
LONDON (Alliance News) - Oxford Technology 2 VCT PLC said Monday the launch of its B shares has been cancelled and the talks with Chelverton Asset Management Ltd to manage the share class have ended.
Shares in Oxford Technology 2 were up 23% Monday at 57.00 pence each following the news
Chelverton notified Oxford Technology 2 last Friday of its unilateral decision not to proceed with the subscription offer.
The science and technology start-up investor said the notification was a "surprise" and it "regrets" the launch of the B share class has been formally terminated.
"The board of OT2 therefore regrets to announce to shareholders that discussions with Chelverton regarding their planned appointment as investment manager of OT2 and the launch of an offer for subscription for new B shares have been formally terminated. The proposed offer for subscription for a new class of B shares will therefore not proceed at this time," the venture capital trust said.
In October, Oxford Technology 2 announced the intended launch of the new share class, with Chelverton expected to manage the new share class under a "more generalist" investment policy.
Oxford Technology and Chelverton proposed to launch for subscription up to GBP5.0 million through the issue of 5.0 million B shares, with an over-allotment facility for a further GBP5.0 million.
The venture fund added: "As previously explained in the circular, your board remains convinced that expanding the asset base of the company by raising funds with a new manager remains an attractive course of action for OT2's shareholders, and therefore will continue to pursue other such opportunities to achieve this goal."
Oxford Technology said Chelverton bore the costs of the efforts to issue the B shares up to this point, and there are no termination costs for the VCT.