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DISA'S directors no longer wish to proceed with a planned 50-into-one share consolidation, citing the increase in the company's share price over the past several months.
Because DISA, which supplies anti-theft technology for retail electronic goods, had already received shareholders' approval to consolidate its shares, the company will have to obtain their approval again to disregard the previous plan.
DISA in December had announced plans to consolidate every 50 shares into one share, citing the desire to reduce the fluctuation in market capitalisation as a result of its low-priced stock and to increase interest from the market.
From July to December 2016, shares of DISA, which was formerly called Equation Summit, had traded between 0.2 Singapore cent and 1.3 Singapore cents. Between January and May, however, the share price had improved to trading between 1.3 Singapore cents and 3.7 Singapore cents. Trading volumes have also increased, DISA noted.
"The board is now of the view that the rationale for undertaking the proposed share consolidation set out in the circular is no longer as applicable under the current market circumstances," DISA said. "Accordingly, the board has decided that it may not be in the best interests of the company and the shareholders to proceed with the proposed share consolidation at this time."