Cordlife shares surge 20%, prompting SGX query

By 11.03am on May 3, 2019, the stock was up 19.54 per cent or 8.5 cents to 52 cents, with 273,300 shares changing hands.
By 11.03am on May 3, 2019, the stock was up 19.54 per cent or 8.5 cents to 52 cents, with 273,300 shares changing hands.PHOTO: CORDLIFE GROUP

SINGAPORE - Shares in mainboard-listed Cordlife surged almost 20 per cent on Friday morning (May 3), prompting a query from the Singapore Exchange (SGX).

As at 11.03am, the stock was up 19.54 per cent or 8.5 cents to 52 cents, with 273,300 shares changing hands after two hours of trading from the opening bell.

SGX flagged the unusual price movements and asked the cord blood banker if it knew of any information which could explain the trading. It asked the company to confirm its compliance with mainboard-listing rules, in particular Rule 703, which requires issuers to announce any known information concerning it or any of its subsidiaries or associated companies.

The company had held its annual general meeting on April 26, where all resolutions were passed.

In Feb 28, it appointed Tan Poh Lan as its executive director and group chief executive officer following the exit of former group CEO Michael Weiss. Prior to the change of guard, Ms Tan was Cordlife's group chief operating officer.

In a separate announcement on the same day, it released its fiscal 2018 results for the full year ended Dec 31, 2018, where it recorded $5.2 million in net profit, from a net loss of $1.7 million the year before.

Earnings per share was at 2.19 cents, up from a loss per share of 0.46 cent a year ago. It also proposed a final tax exempt 1-tier dividend of 0.4 cent per share, from no dividend a year ago.