UMA MQ Technology says unaware of reason behind UMA

by **Cals** Mon 19 Oct 2015, 18:15

UMA

[size=28]MQ Technology says unaware of reason behind UMA

By Yimie Yong / theedgemarkets.com | October 19, 2015 : 3:03 PM MYT

KUALA LUMPUR (Oct 19): MQ Technology Bhd ([You must be registered and logged in to see this image.] Valuation: 0.30, Fundamental: 0.95), which was issued an unusual market activity (UMA) query by Bursa ( Valuation: 1.70, Fundamental: 2.30) Malaysia last Friday (Oct 16) on the sharp rise in trading volume of its shares, said that the company is unaware of the reason behind the UMA.

In its reply to the UMA query today, MQ Technology said that save for the announcement on Feb 27, which saw the company entering into a heads of agreement (HOA) with Cash Support Sdn Bhd to form a joint venture over a parcel of land in Malacca to be developed into a theme park, it was not aware of any corporate development, rumour, report or any other possible explanation for the rise in its trading volume.

"As announced, the company's portion of the lease payment is expected to be funded through internally-generated funds, bank borrowings and/or additional funds to be raised from the capital market," it said.

As announced on July 27, 2015, MQ Technology said the parties have mutually agreed to extend the expiry date of the HOA to Oct 27.

"At present time, the valuation of the project land by the appointed independent valuers and the due diligence to enable the parties to negotiate and execute the definitive agreements are both ongoing and yet to be finalised," the ACE-market listed company added.

MQ Technology was slapped with an UMA query after its trading volume significantly surged to a high of 103.6 million shares last Friday, compared to its volume of 17.36 million shares last Thursday.

At 2.35pm, MQ Technology, the most-actively traded counter on Bursa, was traded at 11.5 sen, down 2 sen or 14.82%, with 102.12 million shares changing hands. It has a market capitalisation of RM32.08 million.

MQ Technology had on July 31 proposed to undertake a private placement of up to 25.36 million new ordinary shares of 10 sen each, representing 10% of the issued and paid-up capital of MQ Technology, to raise approximately RM2.54 million.

The company had on Sept 17 fixed the issue price, which is at the par value of MQ Technology shares and is at a discount of RM0.0039 or approximately 3.75% to the five-day volume weighted average market price of MQ Technology shares up to and including Sept 15, 2015 of 10.39 sen.

"The MQ Group intends to utilise up to RM2.42 million of the proceeds for its day-to-day operations," it said in an announcement dated Aug 3.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
[/size]