Blis blames share price spike on registry clean-up of small parcels

NZX-listed biotech company Blis Technologies is blaming a near-trebling in its share price on plans to tidy up its share registry by mopping up small holdings.

Chief executive Barry Richardson told the stock market supervisor it announced plans in December to put a minimum holding of 25,000 shares for its investors in a bid to cut administration costs, and that had probably caused the price spike.

NZX Market Services issued a "please explain" after Blis shares climbed to 3 cents from 1.1 cents since the December 21 announcement. The stock dropped 6.7 percent to 2.8 cents on the NZX today.

"Approximately 1600 shareholders would be required to supplement their existing shareholding if they wish to continue to remain shareholders," Mr Richardson saysin a letter to NZX Market Services.

"Due to the relative lack of liquidity in the market for Blis shares, shareholders who are seeking to top up their holdings may have influenced the market price."

Listed companies operate under continuous disclosure rules which mean they have to provide any information that could be material to its business and influence its share price.

Blis shareholders with parcels of fewer than 25,000 shares have until March 21 to top-up their stakes, otherwise their investment will be sold by a banker instructed by Blis, and fees will be deducted.

The Dunedin-based company expects to report an operating loss of $1.3 million in the year ending March 31, after posting a pre-tax and finance loss of $1.2 million in the 2012 financial year.

In October it raised $1.3 million via a share purchase plan and a placement at 0.7 cents apiece.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7850 -0.0001 -0.01%
AUD 0.8957 -0.0002 -0.02%
EUR 0.6214 -0.0002 -0.03%
GBP 0.4894 0.0000 0.00%
HKD 6.0919 0.0019 0.03%
JPY 84.1530 0.0310 0.04%

Commods

Commodity Price Change Time
Gold Index 1241.1 -7.450 2014-10-22T00:
Oil Brent 84.7 -1.510 2014-10-22T00:
Oil Nymex 80.5 -1.970 2014-10-22T00:
Silver Index 17.2 -0.310 2014-10-22T00:

Indices

Symbol Open High Last %
NZX 50 5279.7 5298.2 5279.7 0.32%
NASDAQ 4429.2 4435.9 4419.5 -0.83%
DAX 8934.5 8957.2 8887.0 0.60%
DJI 16615.3 16653.9 16614.8 -0.92%
FTSE 6372.3 6401.5 6372.3 0.43%
HKSE 23296.0 23397.2 23404.0 -0.40%
NI225 15093.8 15137.4 15195.8 -0.52%