NutryFarm continues to rise a day after SGX query

Singapore

SHARES of mainboard-listed NutryFarm International continued to rise on Tuesday amid heavy volume, a day after it was queried by the Singapore Exchange regarding trading activity and unusual price movements in the company's shares.

NutryFarm's shares rose 17.1 per cent or six cents on Tuesday to close at 41 Singapore cents.

Around 2.7 million shares changed hands on Tuesday, significantly higher than the daily volume of less than 200,000 shares traded on average in the months of October and November.

For the month of December, NutryFarm's share price has already jumped more than 2.5 times, compared to the 15 Singapore cents close on Nov 30. Trading volume has also been higher than average for most of December, with daily volume of more than one million shares in the past five trading days.

Singapore Exchange Regulation (SGX RegCo) had on Monday afternoon issued a query to NutryFarm International on its trading activity, after noting "unusual price movements" in the company's shares recently. It was the second query issued to NutryFarm in the past three months.

It asked the company if it was aware of any information not previously announced concerning the company, or other possible explanations, that may explain the trading. SGX RegCo also asked the company to confirm its compliance with listing rules.

In its response on Monday night, NutryFarm said it was not aware of any material information not previously announced that might explain the unusual price movements. It was also not aware of any other possible explanation for the trading, and confirmed it was in compliance with listing rules.

Prior to the SGX query on Monday, NutryFarm's previous announcement was on Dec 10, in relation to the appointment of an executive director of the company.

The company last reported financial results in August for the quarter ended June 30, 2020. It recorded a net loss of HK$1.1 million (S$189,250), compared to a HK$3.6 million loss in the year ago period. Revenue in the latest quarter was HK$12.2 million, up from HK$10 million previously, mostly from a subsidiary.

NutryFarm said its subsidiary was impacted by Covid-19 and temporarily ceased manufacturing of goods earlier in the year. The subsidiary also imports products of mixed drinks of Lutein ester and blueberry and crispy oatmeal, which was noted to have low profit margin.

Prior to the impact of Covid-19, NutryFarm had said in previous financial statements that its subsidiary faced challenges arising from the depressed market for nutritional products in China.

NutryFarm was previously queried by SGX on Sept 23. Its shares had nearly doubled on that day, rising from 5.6 Singapore cents to 11 Singapore cents.

Back then, the company had also said it was not aware of any material information not previously announced that may have caused the trading. The company had noted that it had entered into placement agreements with two investors for the subscription of 19 million new shares at four cents per share earlier in September.

The company later announced that the placement shares were listed and quoted on the mainboard of the Singapore Exchange on Nov 19.