SINGAPORE (Dec 18): In response to a query by Singapore Exchange Regulation (SGX RegCo) after its share price rocketed 48.4% on Tuesday, Broadway Industrial Group says it is not aware of any information not previously announced that could explain the unusual price movements.
However, the group pointed out that it had earlier announced a strategic review to diversify and expand its existing business as well as unlock shareholders’ value.
On Nov 28, the group had revealed that, as part of the ongoing strategic review, it is engaged in discussions with two prospects on possible merger and acquisition transactions.
In its response to the market regulator at 10.09pm on Tuesday, Broadway says the discussions are still ongoing. It highlighted that the company has not made any decision or entered into any agreement in relation to the strategic review.
Broadway also confirmed that it remains in compliance with SGX listing rules regarding disclosure of material information.
Shares in Broadway had opened at 6.4 cents on Tuesday, and rose to 7.3 cents at about 4.25pm. The counter then surged by a further 30% to close at 9.5 cents.
See: Broadway Industrial prompts SGX query as shares surge 48%
Since June 6, Broadway had been included on the SGX minimum trading price watch-list. The company has 36 months to meet the bourse’s minimum trading price exit criterion to qualify for its exit from the watch-list.
Under SGX’s MTP rule, a mainboard-listed company must maintain a six-month volume-weighted average share price of at least 20 cents, and a six-month average daily market capitalisation of at least $40 million.
Broadway’s market cap currently stands at $44.8 million. However, the last time the group traded above the MTP of 20 cents was in March 2017.
As at 12pm, shares in Broadway Industrial are trading flat at 9.5 cents, with some 45.5 million shares changing hands today.
