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Hot stock: Technics Oil & Gas down more than 23% on legal woes
SHARES of Technics Oil & Gas fell by more than 23 per cent to S$0.065 as at 12.10pm on Friday, following a series of legal suits in the past week and prompting a query on trading activity by Singapore Exchange (SGX) on Friday morning.
As at 12.10pm on Friday, Technics was the most traded stock on SGX, with 12 million stocks having changed hands. It opened at S$0.083, down 7.4 Singapore cents from its Thursday close, before falling to S$0.057 - its intra-day low - at 10.20am.
SGX at 10.30am issued a query on Technics' trading activity, requesting for possible explanations behind the "unusual volume movements" in its shares. SGX added that this was the second query issued to Technics in the past three months.
On Wednesday, Technics announced through SGX that Soilbuild Reit has called on the company's bank guarantee for the sum of S$11.8 million with respect to the 18 months' rental for the second year of lease for the company's premises at 72 Loyang Way.
"The company's efforts to restrain Soilbuild Reit's call on the bank guarantee were unsuccessful," said Technics. It added that the sum under the bank guarantee has since been paid by UOB to Soilbuild Reit.
Last week, Technics reported that its subsidiary, Technics Offshore Engineering, has received two writs of summons from Ting Tiong Ching and Hup Seng Offshore Engineering.
Ting Tiong Ching is a former director of the company who is claiming for repayment of loans amounting to about S$1.93 million together with interest accrued thereon and legal costs.
Hup Seng is a company controlled by the relatives of Mr Ting and is claiming for repayment of loans amounting to about S$3 million together with interest accrued thereon and legal costs.
Technics is a mainboard-listed integrator of compression systems and process modules for oil and gas customers.