Hot stock: Spackman jumps 50% in early trade on cinema divestment news

SHARES of Spackman Entertainment 40E rose 50 per cent amid heavy trading on Wednesday morning, after the group announced it was selling Zip Cinema for S$19.8 million to South Korea's Kakao Corp.

As at 9.04am on Wednesday, the counter had risen 0.2 Singapore cent or 50 per cent to 0.6 cent after some 35.9 million shares changed hands, making it the top traded by volume at the market open. It later eased to 0.5 cent, up 25 per cent or 0.1 cent, by 9.40am.

No married deals were recorded in early trade, according to ShareInvestor data.

Based on Spackman's share performance over the last 52 weeks, prices have ranged from 0.4 to 0.8 cent with the average volume traded being 2.6 million shares.

The group on Tuesday evening said it expects its proposed disposal to result in higher group net tangible asset, reduce loss per share, and enhance the group's current ratio and liquidity.

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It intends to use proceeds from the sale of Zip Cinema for business diversification and expansion into other businesses, particularly in the area of co-producing and financing US films, which it believes to be potentially more profitable than Korean films due to a wider international audience base.