SHANGHAI, Jun. 25 (SMM) – Yunnan Luoping Zinc & Electricity Co. filed a statement to Shenzhen Stock Exchange today to explain some company events that might have caused the unusual movements in its stock prices on June 20, June 23 and June 24.
The company clarified that it is not and has no intention of in the next three months planning any major asset reorganization, acquisition, and share issuance.
Luoping Zinc & Electricity announced March 11 that its shares would be halted from trading on the Shenzhen Stock Exchange since March 11 due to preparation of a major company event.
The company entered into framework agreement with Yunnan Provincial Energy Investment Group Co. on March 31, which would allow the latter to acquire of 49% of Luoping Zinc & Electricity’s stake. Potential risks and uncertainties surrounding the transaction caused Luoping Zinc & Electricity to continue suspending its share trading.
On June 5, however, Yunnan Provincial Energy Investment announced to stop any works pertaining to the cooperation, noting that the two parties still lacked conditions to push on with the transaction. On the same day, Luoping Zinc & Electricity announced it would not arrange any major events associated with the listed company in the six months after resumption of its share trading.
Tradng in Luoping Zinc & Electricity’s stock was restarted on June 9.
Luoping Zinc & Electricity’s stock price rose by its daily limit for three consecutive trading days from June 20 to June 24, posting an over 20% increase. The company’s controlling shareholders did not buy or sell the company’s stocks during the above three trading days, and there was no substantial change in its operations, it said in the statement.