BPS blames exiting coup leaders for increased trading volumes
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After a failed takeover attempt, activist shareholders of BPS Technology are selling out… at least according to BPS.
Directors of BPS — which is best known for its Bartercard business trading system — say record trading volume in its shares are a result of errant parties who didn’t get their way earlier in the month.
Alceon Liquid Strategies and LHC Capital partners — who together own 8.8 per cent of the business — put forward a resolution to sack the current board last week — but failed to gain shareholder support.
In a letter to shareholders on Wednesday the BPS board said the shareholders who had called the extraordinary general meeting were behind the increase in trading volume.
“The Board of BPS has become aware of the recent significant increase in the volumes of trading in BPS securities,” BPS said.
“These volumes have reached up to 9 times the historical average daily trading volume and it is likely that this is having an adverse effect on the share price,
“It has become apparent that the major sellers are the associated parties that recently called the EGM.”
BPS shares (ASX:BPS) were selling at 2.5c on Wednesday, with more than 1 million traded.
Cumulatively, more than 3.5 million shares have been traded since the meeting of shareholders on November 6.
The board reassured investors that financial results for the four months to October 31 were in line with expectations of $110 million in revenue and $10.3 million in earnings for this financial year.