Theta Edge says pursuing projects, mulls cash call

This article first appeared in The Edge Financial Daily, on November 2, 2017.
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KUALA LUMPUR: Theta Edge Bhd, a subsidiary of Lembaga Tabung Haji, said yesterday it has been actively pursuing projects in its ordinary course of business, which are still in discussions, evaluations and/or pending decisions at this juncture.

The information and communications technology service provider added that it has been considering a private placement exercise.

“There have been preliminary discussions with potential investors. However at this juncture, nothing has been confirmed or materialised,” it said in a reply to Bursa Malaysia’s unusual market activity (UMA) query.

On Tuesday, the regulator slapped loss-making Theta with a UMA query on the recent sharp rise in its stock price. The stock rose as much as 46.7% to its intraday high of 67.5 sen in early trade on that day, before closing 11 sen or 23.91% higher at 57 sen — its highest closing since May 21 this year.

“Theta will make the necessary announcement[s] in compliance with its obligations under the Main Market Listing Requirements if the project[s] are awarded to Theta,” the company said.

It also said another possible explanation for the recent rise in its share price is the possible change in Theta’s board of directors following the resignation of its chairman Tan Sri Hashim Meon, announced to Bursa on Tuesday.

“An announcement pertaining to the new chairman’s appointment will be made in due course,” it said.

The stock has been trading in a 52-week range of 25 sen to 68 sen. Theta shares closed up three sen or 5.26% at 60 sen yesterday, with a market capitalisation of RM64.35 million.