YUUZOO Corporation on Wednesday said it was unaware of any information not previously disclosed that might explain the sudden hike in its share price.
In its reply to queries from the Singapore Exchange on the unusual price movements, the social media and e-commerce outfit said: "The company is constantly in discussions on potential partnerships in the ordinary course of business.''
YuuZoo shares opened at S$0.565 a share on Wednesday morning, before climbing to S$0.625 a share. At 2.29 pm, they were trading around S$0.60, up five cents, or nine per cent, from Tuesday's close. With more than 36 million shares traded, the stock is the fifth most actively traded on the Singapore bourse.
Last week, YuuZoo reported a loss of US$16.26 million for the third quarter ended Sept 30, 2014, after taking into account reverse takeover (RTO) expenses of about US$23 million. A year ago, it made a net profit of US$1.97 million. Revenue grew almost 38 per cent to US$10.2 million.
Yuuzoo made its debut in September after a RTO of components trader W Corp. The company's key operations now revolve around social networking, e-commerce and gaming.
YuuZoo had said its outlook for Q4 and beyond is positive. It was in discussions with leading TV networks and franchisees in several markets to launch its business model across the world.
"Existing agreements are likely to generate growth and recurring income in e-commerce, payments, gaming and network developments, while discussions with new potential franchisees and clients are likely to generate new franchise and network development revenue,'' said YuuZoo chairman and CEO Thomas Zilliacus.
For the first nine months of this year, the company grew its access to over 65 million registered users and over 700 million TV viewers from 37 million registered users and no TV viewers in the corresponding period in 2013. Its payment merchants grew from seven in the corresponding period in 2013 to over 100.
YuuZoo said the growth in users, viewers and merchants lays the groundwork for strong e-commerce, advertising and payment revenues in the near future.
It has recently entered the lucrative gaming market with a partnership with Thailand-based Sandbox, a leading mobile and online game developer. Its first mobile game is already available on Apple's iTunes and is to be published on Google Play Store this year.