Chakwal Spinning Mills Limited (CLOUD) has claimed that reports around the company’s management being involved in inside trading with certain investors are false.
The listed company, in a notice to the Pakistan Stock Exchange (PSX) on Wednesday, also denied reports suggesting it did not disclose all material information regarding its new technology setup.
Its remarks come after it was reported that the Pakistan’s regulator – the Securities Exchange Commission of Pakistan (SECP) – flagged the trading activity of an investor in the shares of Chakwal Spinning Mills Limited as unusual and suspicious during the review period from December 21, 2023, to August 12, 2024. It also said it would investigate unusual trading activity in the company’s shares that has seen the price increase exponentially in the last year or so.
At the end of August 2023, the share price was hovering around Rs1.3 before hitting Rs168 in a year. It plummeted in the wake of reports of the investigation, but on Wednesday, the share price increased again to settle at Rs117.74.
“Its extremely disappointed to create link without any proof and just based on market judgements,” the company said in the PSX notice.
“The company is just waiting for the regulatory approval from SECP CRO Lahore office to issue new company certificate so the company may start technology business immediately,” it added.
The company also shared a letter written to the Listed Companies Compliance Department-RAD, dated August 23,2024, in which it informed that the SECP has yet not issued the Company Certificate despite all documents along with paid challan were submitted on 7th August, 2024.
Chakwal Spinning to set up data centre, cloud operations in Pakistan
“Due to this, company is waiting for the Partnership Certificate from Huawei and Dell Technologies,” read the letter.
In its letter, CLOUD said the company was pursuing all efforts for its revival as it suffered heavy business losses in the past and was forced to shut down its operations.
It informed that it was looking at the merger opportunity as an effort to put the company again on the path of business operation but the merger “could not prevail over the decided time span and stand withdrawn/lapsed”.
It said that the Board of Directors realized the great potential in the growing IT sector under the new and improvised initiatives by the government and decided to venture into cloud computing.
“Chakwal Spinning Mills then decided to change its name into Quantum Clouds and & Al Technologies Limited, Pakistan’s first multi cloud company with partnership of global players with new object and principal clause of business.
The company aims to establish cloud data centers in Pakistan for first time in the history of Pakistan. “We believe that Quantum Cloud will be the only Multi cloud in Pakistan,” it wrote in its letter.
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