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What's Up At Engin? Not The Share Price (Anymore) |
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Written by Adam Gosling
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Tuesday, 12 September 2006 |
Retail and wholesale VoIP service provider engin has been asked
by the ASX to explain why its share price has been on a roller coaster ride
since Friday.
The company, in a statement to the Stock Exchange says that although
it is in discussions to raise capital, it sees no reason why the share price
rose sharply on Friday and increased again on Monday.
Beginning Friday afternoon the share price went up abruptly and
climbed even higher yesterday (Monday) before plumbing new depths, recovering and
then falling again today to the point where it is currently at the level it was
in the middle of last week.
In its statement to the ASX engin released this morning the
Company Directors say: "The Company has no direct knowledge of what factors may
be influencing the recent movements in the trading price of shares in the
Company. However, the Company's directors wish to advise that the Company has
been and is currently in discussions with a number of parties in relation to
various transactions including possible capital raising opportunities with
various investors, including institutional, strategic or sophisticated
investors.
"The discussions are continuing and no agreement on any
particular transaction has been reached. The Company is currently seeking
advice on the possible options from its advisers. There is no certainty that
any corporate activities will eventuate from these discussions."
The ASX specifically asked if the fiscal year end results might
provide any market surprises; to which engin Directors replied in the statement:
"The Company as at the end of June 2006 is substantially different to the
business accounted for in the financial year ended June 2005. In 2005, the Company
divested of its operating relationship and pending High Court legal challenge
against Vodafone in the financial year ended June 2005. The half-year results
before tax as at December 2005 are expected to reflect the current operational
results of the Company for the half-year ended June 2006."
Neither should be a surprise to the markets, the company
went to shareholders in July to seek approval to raise more capital to fund infrastructure
and marketing programs, while the Vodafone litigation relates to the company's previous
life in the mobile phone industry.
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