General Announcement::SGX REGCO ISSUES TRADE WITH CAUTION ALERT ON SHARES OF METECH INTERNATIONAL LIMITED

Issuer & Securities

Issuer/ Manager
METECH INTERNATIONAL LIMITED
Securities
METECH INTERNATIONAL LTD - SGXE91187273 - V3M
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
20-Jan-2022 17:22:40
Status
New
Announcement Sub Title
SGX REGCO ISSUES TRADE WITH CAUTION ALERT ON SHARES OF METECH INTERNATIONAL LIMITED
Announcement Reference
SG220120OTHRYXHF
Submitted By (Co./ Ind. Name)
SINGAPORE EXCHANGE REGULATION PTE. LTD.
Designation
SURVEILLANCE
Description (Please provide a detailed description of the event in the box below)
Singapore Exchange Regulation ("SGX RegCo") urges investors and potential investors to exercise caution when dealing in the shares of Metech International Limited ("Metech"). The share price of Metech rose from $0.245 on 1 November 2021 to $0.375 on 21 December 2021, a rise of $0.125 or 51%. This was despite the Straits Times Index ("STI") declining 133.97 points or 4.2% during this period.

On 20 December 2021, SGX RegCo issued a trading query to Metech on unusual volume movements in its shares. In its response, Metech made reference to its earlier announcement on 24 September 2021 regarding its subsidiary's joint venture agreement relating to the lab-grown diamonds industry and mentioned plans to seek approval at an Extraordinary General Meeting for its business diversification. Subsequently, shareholder approval was obtained on 11 January 2022.

After reaching a high of $0.375 on 21 December 2021, Metech share price fell to $0.21 on 19 January 2022. The share price movement was in contrast with the STI which climbed 198.86 points or 6.5% across the same period.

SGX RegCo's review showed that a group of accounts was responsible for 54% of buy volume from 1 November 2021 to 21 December 2021 and 51% of sell volume from 22 December 2021 to 19 January 2022 in Metech shares. Individuals behind the group of accounts appear to be connected. The individuals within this group traded Metech shares with each other and such trading accounted for approximately half of their traded volume.

SGX RegCo is reviewing the trades in Metech shares and will take the necessary actions including referring the case to statutory authorities where warranted.