Yolo Leisure and Technology said it had raised £0.3m from a share issue and would invest £0.1m in telecom technology group Sparkledun.
News shares in the company were issued at 3.75p each, an 11% premium to their closing price on Monday.
The company said its investment would give it 3.4% of Sparkledun share capital.
Sparkledun has developed a technology solution for the extraction of the inner core of telecoms and power cables, allowing the insertion of fibre optic without the need for excavation.
At 9:40am: (LON:YOLO) Yolo Leisure And Technology Plc share price was 0p at 3.38p