Milk maker JAT trebles in return to the market, ASX keeps a watchful eye
Health & Biotech
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China focused exporter JAT Energy tripled in value after an extended suspension from the bourse.
The shares (ASX:JAT) were suspended at 7c in mid-December after the ASX raised an eyebrow to a change in activities. But they were back to trade last week, reaching highs of 23.7c in intraday trade on Monday.
JAT closed up 11 per cent at 20c on Monday with $12 million stock changing hangds.
On Friday, the company released a statement to its website – not the ASX – detailing discussions with one of Asia’s biggest e-commerce sites, JD.com.
JAT said it had hosted representatives from JD.com and Eternal Asia Supply Chain Management to negotiate a distribution agreement for its Golden Koala milk products in China.
When quizzed by the ASX compliance team JAT said it had followed all listing rules, and that announcement to the market would only be made once a deal was set in stone.
A similar deal with JD.com inked by Bubs last week saw its share price shoot up to close just shy of $1 on Monday.
The spike in JAT’s share price is set to make one charity very happy as well.
Earlier this month the company announced it had breached the rules around issuing securities without shareholder approval.
Shares were issued to three directors Tony Crimmins, Wilton Tao and Xipeng Li, in breach of the rules back in December, and today two of three of those share parcels were sold.
The sale of Mr Crimmins’ and Mr Li’s shares netted the company just shy of $500,000 – from an initial investment of $40,000 – the $460,000 in profit stipulated to be donated to a registered charity.
Mr Wilton Yao remains in the process of arranging for his shares to be sold on market.
The company’s fate will be decided at its general meeting next month, when shareholder will have to vote on the change of JAT’s activities from its legacy coal business to that of an fast moving consumer goods business.
As part of that, a vote will also be taken on the issue of shares to acquire 51 per cent of milk formula maker Golden Koala for roughly $2 million and $1.5 million of JAT shares.