When dumping your CEO and slashing costs is great for your stock: CCP shares surge 150pc
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After dumping its CEO and COO two weeks ago, CCP Technologies has some better news that sent its share price up a whopping 150 per cent.
The company (ASX:CT1) reckons it will break even sometime after June thanks to cost cutting and a vague reference to “expanding contract development work”.
The share price surged on the news from 0.6c at last night’s close to 1.5c.
It’s expecting a range of one-off payments to help with the budget.
CCP is anticipating it’ll get paid by “entitlement-based government programs”, without explaining what these might relate to, and it might get that extra $460,000 it’s owed for a disastrous crypto investment.
When the board sacked the CEO and COO, Leath Nicholson cited cost cutting and a need to successfully win the deals in their current pipeline.
Today they announced costs had been cut from $150,000 a month to $50,000 — very useful when their cash buffer was $162,000 at the end of December.
The company has been running out of money. A recent share purchase plan raised only $240,500 of a desired $750,000.
CCP has consistently struggled to make money out of an array of products including wireless temperature monitoring devices, data collection and analysis, “contract development”, and licensing an Internet of Things (IOT) platform that connects IOT devices.
A crypto deal in July, when Penta Global Blockchain Foundation promised a half-million-dollar investment solely in the Penta cryptocurrency, yielded a meagre $97,804 — not the $561,247 promised.
The $460,000 top up was part of the contract where if the value of the then-newly listed tokens dropped (as they did, dramatically), Penta Global would pay the extra in cash.