Addvalue Tech attributes share plunge to ‘misguided’ view on funding arrangements

Addvalue Technologies attributed its stock’s more than 30 percent plunge Tuesday to the market potentially holding a “misguided perception” that the company hasn’t been successful in making funding arrangements or that it might be without options for its repayment obligations.

“As the amount that the company is negotiating for pursuant to the funding arrangements is significant, it has taken a while for the company
to negotiate and narrow down on the terms and conditions” with the funder, which appears still positive on the group’s long-term potential, Addvalue said in a filing to SGX responding to the exchange’s query on the sharp move in its stock price.

“The company is working with the funder to finalize the funding arrangements,” Addvalue said. “Barring any complications, the company is cautiously optimistic about sealing the funding arrangements shortly.”

Shares of Addvalue ended Tuesday at S$0.009, down 30.8 percent, after falling as low as S$0.007 during the session.

On 19 July and 7 August, Addvalue had announced SGX had granted it an extension of time to hold its annual general meeting for the financial year ended 31 March. The company said it had requested the extensions to finalise the funding arrangements.

In response to SGX’s query on whether there was any information not previously announced which could explain the trading, Addvalue said it is currently in discussions with potential suitors/partners to explore one or more potential ventures to unlock the company’s potential value.

“The group, being a people oriented and technology-based (rather than a tangible asset-based) company, is acutely aware that the intrinsic values of its intangibles have not been for some time and are not meaningfully reflected in the trading prices of the shares of the company. Accordingly, the company is constantly on a lookout for possible new avenues to enhance shareholder value,” Addvalue said.

“However, the company would like to note that such discussions are at exploratory and at various preliminary stages with no certainty that the company will proceed with any of them,” the company added.

Addvalue provides communications terminals for space, air, sea and ground use, including for satellites and fishing fleets, as well as incorporating engineering and integration services.