(Alliance News) - Seraphim Space Investment Trust PLC on Thursday said while it has the authority to repurchase up to 15% of its share capital, it does not plan to fully utilise its share buyback programme.

This is because the London-based space technology investment firm said it is unable to pay the price on buying back any shares which would equate to a premium on its net asset value.

On March 31, NAV per share for Seraphim was 91.77 pence, down 1.0% from 92.74p on December 31. On Thursday late morning, Seraphim shares surged 26% to 33.00p each in London.

Seraphim also announced it appointed JPMorgan Securities PLC, an arm of JPMorgan Chase & Co, to act as its broker for the buyback programme.

No financial details were disclosed on the price per share at which Seraphim would conduct the buyback, nor how many of the 35.9 million shares under the buyback programme that it would actually repurchase.

Seraphim said no maximum consideration payable had yet been determined by the company, while the buyback would be funded from the company's resources.

Meanwhile, Seraphim also provided a commercial update, in which it said it was pleased by the "positive developments" within the portfolio during its financial year that ended June 30.

"Investment activity has been robust, with a total of 11 companies successfully closing investment rounds," the company said, noting the majority of rounds were led by new external investors, while it participated in two-thirds of the rounds.

"Six of the company's investments were made at higher valuations relative to previous rounds, versus only one at a lower valuation. This positive investment activity demonstrates the continued strength of the portfolio companies and the increasing market recognition of their potential."

Seraphim said its portfolio remains well capitalised into the medium-term, while the board is confident that its existing GBP35 million cash reserve will be able to support the expected fundraise requirements of the portfolio over the next 12 to 18 months.

It expects to provide a "more detailed" trading update once its portfolio company reporting cycle for the second quarter of calendar 2023 is completed, ahead of publishing its full-year results in October.

By Greg Rosenvinge, Alliance News reporter

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