Dunedin-based Blis Technologies has responded to a New
Zealand stock exchange ''please explain'' request - over its
share price spiking more than 170% - saying shareholders were
topping up their stakes.
Fraser Wyeth, of NZX market services, requested Blis publicly
disclose whether it had any ''material information'', which
may have affected its share price gaining 173%, from 1.1c per
share to 3c recently.
Blis chief executive Dr Barry Richardson said Blis had given
its shareholders three months' notice to enforce a rule
requiring they hold a minimum 25,000 shares, because of the
cost of administration on such small parcels. Holdings below
25,000 at March 1 would be automatically purchased, or with
shareholder agreement, donated to Cure Kids.
Dr Richardson said about 1600 small shareholders were
affected by the new minimum holding requirement, and would
have to buy more shares if they wanted to remain as
shareholders.
''Due to the lack of liquidity in the market for Blis shares,
shareholders who are seeking to top up their holdings may
have influenced the market price,'' he said in the disclosure
statement.
Mr Wyeth's ''please explain'' request covered only the share
price spike, and did not question the large increase in the
volume of shares traded this week - about 4 million as
opposed to a more typical rate of about 400,000 shares a
week.
Craigs Investment Partners broker Greg Easton said the recent
trading ''consistency'' of 1 million Blis shares changing
hands during each of the past four days was ''unusual''. The
1.4 million shares traded on Wednesday were worth just
$41,000.
- simon.hartley@odt.co.nz
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