Tech Mpire reflects on past announcement, says it should have kept its mouth shut
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Tech Mpire continues to face the ASX’s wrath, with a second round of questioning over its announcement of a deal with “one of the world’s largest” video streamers.
Now, it says it shouldn’t have released the announcement by itself.
The initial announcement on January 22 told investors it had been “selected by Tier 1 premium advertiser for APAC campaigns” and was listed as price sensitive.
But after a second ASX query it has clarified that the announcement alone was not material.
“This in and of itself was not considered material, however given Tech Mpire had recently raised capital it wanted to give shareholders an update on the pursuit of that strategy,” it replied to the ASX.
“In retrospect, the company would probably have chosen to include this information in a corporate update among other news rather than as a standalone announcement.”
After the clarification, Tech Mpire shares (ASX:TMP) rose 11 per cent to close at 20c.
TMP told the ASX the trades on that day were just part and parcel of normal trade.
“The fact that some trading occurred and that the price increased can be attributed to the extremely low volume of shares commonly traded and small number of actual trades,” it said.
“Persons that commonly value companies would not rely on the trading history of Tech Mpire as a reliable indicator of the company’s value given the very low volumes traded.”
On January 22, $41,916 was traded compared to the company’s average daily turnover for the three months of $29,775.
It confirmed the agreement was informal and with no revenue payable and non-binding.
Shares in the company opened at 18c on Tuesday morning.