UMA MLABS Systems unaware of reason behind share price, volume spike

by **Cals** Fri 03 Jun 2016, 10:03

UMA

[size=28]MLABS Systems unaware of reason behind share price, volume spike

By Tan Siew Mung / theedgemarkets.com | June 2, 2016 : 10:44 PM MYT
KUALA LUMPUR (June 2): MLABS Systems Bhd, whose share price spiked 44% to its one-year high of 11.5 sen today, said the group is unaware of any reason behind the sharp rise in the price and trading volume of its shares.

In a reply to Bursa Malaysia's unusual market activity (UMA) query earlier today, the group said there are presently no corporate development relating to the group and its subsidiaries' business and affairs that has not been previously announced that may account for the UMA other than the company's ongoing discussions with Bage Holdings Ltd since the first quarter for the proposed acquisition of the entire issued and paid-up share capital of BAGE (China) Co Ltd.

It also highlighted that at this juncture, the proposed acquisition has not been finalised; however, upon finalisation of such terms, the company intends to enter into a heads of agreement for the proposed acquisition within two weeks from the date of this announcement.

The group will make the necessary announcements in accordance with the provisions of the ACE market listing requirements, it said.

"The group is not aware of any rumour or report concerning the business and affairs of the MLABS group that may account for the trading activity. It is also unaware of any other possible explanation to account for the trading activity," it said.

MLABS Systems shares surged 43.75% or 3.5 sen to close at 11.5 sen today, with 11.9 million shares changing hands.

Its warrant was also the most actively traded counter today, rising 100% or three sen to close at six sen today, with RM71.19 million units traded.

MLABS Systems is involved in the research and development and marketing of its software product known as the Multimedia Conferencing System. For the 12 months ended Dec 31, 2015, the group posted a net loss of RM783,000.
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