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Hot stock: Technics Oil & Gas plunges after asset disposal talks fail
THE share price of Technics Oil & Gas plunged after trading resumed on Monday following a one-week halt, depressed by news that attempts to sell certain assets in a reverse takeover of the company had been scuttled.
Technics, which opened at S$0.36 a share, was trading at around S$0.18, down almost 44 Singapore cents or 70.97 per cent by 12.20pm. The counter eventually closed 80.8 per cent lower at S$0.119 - a drop of 50.1 Singapore cents. The shares last traded at 62 Singapore cents on Jan 5.
During the period of suspension, Technics was involved in negotiations with a potential purchaser involving a disposal of certain of the company's assets. It was also involved in discussions with another potential party on another major transaction that could lead to its reverse takeover.
However, early on Monday, the company said the parties have "not been able to reach the stage to enter into definitive agreements on these potential major transactions, and have accordingly ceased negotiations".
Technics recently reported deeper losses for its fiscal first quarter ended Dec 31, 2015. Net loss sank to S$1.21 million from S$593,000 a year ago. Revenue fell 18 per cent to S$15.17 million.