HeraMED shares shot higher, and it may have been due to a ‘$13 billion’ typo
Health & Biotech
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Yesterday was an interesting day on the markets for HeraMED (ASX:HMD), the medtech platform which makes pregnancy-monitoring devices.
The stock has been trading in a range between 15c and 17c in recent months. And strategically, it’s been chipping away at building out distribution networks in emerging markets for its HeraBEAT monitoring device, which is accompanied by the HeraCARE software service.
But from a base of 14.5c on Thursday, it rocketed higher in morning trade to close at 21.5c — an intraday gain of almost 50 per cent.
The sharp jump in the price caught the eye of the ASX, and the stock went into a trading halt just before midday.
By mid-afternoon (3:24pm), HeraMED issued its response to a price query — a standard ASX practice when moves in a given stock price change rapidly and unexpectedly.
To start with, the ASX asks whether the company is aware of any information directly concerning it that hasn’t been announced to the market, and which could be a catalyst for the sudden price rise (or fall).
In reply, HeraMED’s response was a succinct “no”. However, the company was then asked if there was any other explanation which could explain the price action.
In response, it noted an article published yesterday on the website Next Tech Stock website (nexttechstock.com).
HeraMED said the article contained a sentence describing the company as “…this $13 billion capped Aussie junior…”.
At market close on Thursday, HeraMED’s market capitalisation on the Commsec ASX trading platform was listed at $6.41m.
HeraMED described the typo as “manifestly incorrect”, and said it was “not aware of the timing of the release” prior to the article’s publication.
By yesterday afternoon, the article published on Next Tech Stock included a description of HeraMED as a “$12.6m capped company with grand ambitions”.
Whatever it was that caused the spike, HeraMED shares closed the day at their highest level since August, although still well below the March 2019 highs above 30c.