Singapore Exchange Regulation ("SGX RegCo") urges investors and potential investors to trade with caution (TWC) when dealing in the shares of Kitchen Culture Holdings Ltd. ("KCH").
The share price of KCH has climbed steadily from $0.069 on 15 April 2020 to S$0.320 on 11 August 2020, an increase of $0.251 or 364%. The Straits Times Index declined by 61.41 points or 2.36% during the same period.
This TWC follows a trading query SGX RegCo issued to the company on 4 June 2020 due to unusual price movements in shares of KCH.
SGX RegCo notes two key corporate actions KCH announced where the volume weighted average price of its shares were crucial to the transactions at hand:
1. On 29 April 2020, KCH announced a convertible loan agreement with maximum conversion into 46,694,626 new ordinary shares. The conversion price of S$0.149 per conversion share was at a premium compared to the volume weighted average price of S$0.1415 on 24 April 2020 used as a reference in the announcement.
2. On 22 July 2020, KCH announced a proposed placement of 40,572,000 new ordinary shares at issue price of S$0.235, a discount compared to the volume weighted average price of S$0.260 on 17 July 2020 used in the 22 July 2020 announcement.
On both these occasions, SGX RegCo observed substantial price movements prior to these announcements.
SGX RegCo’s review of the trades in KCH shares showed that a group of accounts appeared to be influencing the share prices of KCH. The individuals behind these accounts are likely connected to the traders highlighted in RegCo’s previous Trade with Caution alert issued on 24 September 2019.
SGX RegCo is reviewing the trades in KCH shares and will take the necessary actions including referring the case to statutory authorities where warranted.
