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Hot Stock: Compact Metal most actively traded, gains 9 per cent
PENNY stock Compact Metal Industries was most actively traded with some 137 million shares worth S$9.4 million on Monday morning.
The counter, which had a trading halt in the early morning pending an announcement, gained 0.4 Singapore cent or 9 per cent to 4.8 Singapore cents as at 11.24am.
The firm announced that Ma Zhao Yang has exercised the call option to require Chng Gim Huat, executive chairman and largest shareholder of Compact Metal, to sell him 84.6 million shares and 86.76 million warrants.
As a result, Mr Chng's interest in Compact Metal has reduced from 41.86 per cent to 31.28 per cent.
Under the agreement between the two parties, there is a balance of up to 122.20 million shares and up to 125.32 million warrants under the call option that has yet to be exercised.
In early October, a sale and purchase agreement was signed for Mr Chng to sell 28.20 million shares and 28.92 million warrants of Compact Metal to Mr Ma.
Mr Ma was further granted a call option for up to 206.8 million shares at eight Singapore cents each and up to 212.08 million warrants at 2.99 Singapore cents each.