Yahoo Finance SGX RegCo issues 'trade with caution' on Sevens Atelier following recent share price gain of more than 200%
Sevens Atelier was previously known as Pan Asian Holdings
SGX RegCo has issued a "trade with caution" warning on Sevens Atelier, following a recent, rapid gain in its share price.
SGX RegCo notes Sevens Atelier's share price has gained 252.3% from 8.8 cents on April 22 to a high of 31 cents on July 8. The Straits Times Index, over the same period, was down 6.1%.
In response to a trading query on June 13, Sevens Atelier made reference to its May 20 announcement that had issued a circular seeking shareholders' approval to sell its existing business, and to also diversify into design and build business through the proposed acquisition of Sevens Creation.
The go-ahead was given by shareholders at an EGM on June 14. They also gave the go-ahead to change the company's name to Sevens Atelier from Pan Asian Holdings.
On July 7, in response to another trading query from SGX RegCo, Sevens Atelier said it wasn't aware of any possible explanation for the trading activity of the company's shares.
SGX RegCo, citing its own review of the trades done between April 29 and July 8, has observed that a small group of accounts was responsible for over 70% of the buy volume in Sevens Atelier shares.
"The individuals behind these accounts appear to be connected to each other, and our initial findings suggest that they are likely connected to the vendor of Sevens Creation," says SGX RegCo.
"SGX RegCo is continuing to review and monitor trades in Sevens Atelier shares and will take all necessary actions including referring the case to statutory authorities where warranted," it adds.
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