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Hot stock: Addvalue Tech up 7.4% after disclosing IP asset values, anticipated contracts
SHARES of Addvalue Technologies rose in active trading to as high as S$0.029, up 7.4 per cent, on Thursday morning after the group answered shareholder queries on the value of its intellectual property (IP) assets and shared information about anticipated contracts.
It later retreated to trade flat at Wednesday's close of S$0.027, with 3.6 million shares traded as at 10.10am.
In a Singapore Exchange filing on Wednesday evening, Addvalue said that it received two shareholder enquiries on Oct 12, calling for more information on its growth potential, market size of its businesses and value of its IP to be conveyed to shareholders, as Addvalue's share price has been falling despite positive announcements like its securing of new Inter-Satellite Data Relay System (IDRS) contracts.
Addvalue revealed that its business has been valued at about S$123 million as of May 31, 2017.
It said it does not usually respond to all shareholder queries received via its website, but made an exception as it "is of the view that it would be good to provide the shareholders of the company and the investing public at large additional information and clarification on the intangible assets of the group".
The group added that the IDRS market growth potential has outgrown expectations assumed in deriving the May 2017 valuations, and that it expects to sign a few more IDRS contracts in the rest of the current financial year, which ends March 31, 2019.