Winners and Losers: NeuRizer falls again after failed mystery acquisition
Fertiliser firm NeuRizer topped the Losers list again after emerging from a trading halt and telling shareholders it would not be proceeding with a “material acquisition”, details of which are scant.
Last Monday, NeuRizer resumed trading after three weeks off the boards, with an announcement explaining its absence.
The company said it would not be proceeding with a “material acquisition”, but there’s little detail about what that acquisition was.
In its update, NeuRizer said it submitted a draft announcement in relation to this “material acquisition” to the ASX for review in early June.
Following this, NeuRizer received a price query from the ASX after shares leapt from $0.007 on 1 June to $0.017 on 14 June.
The ASX was concerned that the material acquisition had lost confidentiality, but NeuRizer said it “did not believe that the material acquisition had lost confidentiality and that the share price movement could be explained for other reasons”.
The ASX was not convinced though: “Upon review of NeuRizer’s price query response, ASX formed the view that the material acquisition had more than likely lost confidentiality,” NeuRizer’s statement said.
“For this reason, NeuRizer entered into a trading halt and, subsequently, a voluntary suspension to ensure that the market was not trading uninformed.
“Due to the need for NeuRizer to come out of voluntary suspension and to continue with business operations, NeuRizer has decided not to pursue the material acquisition. The company will take advice on whether to re-commence negotiations at a later date.”
Despite announcing it would not proceed with the acquisition, NeuRizer revealed no details about it.
After exiting the trading halt, shares in NeuRizer fell by 38.46 per cent, placing the company firmly on top of the Losers list for the week.
Other losers include AML3D which fell by 18.60 per cent, having experienced major share price growth in recent weeks.
Archer Materials and Centrex also experienced a drop, as did Mighty Kingdom which failed to ignite a sustainable rally on the back of key new management appointments.
Of the Winners, Rex Minerals soared on the back of a takeover bid by a subsidiary of an Indonesian giant, but the share price failed to hit the $0.47 per share offer the suitor proposed.
It was a full house for mining firms in the Winners list, with Rex followed by Itech Minerals, Resolution Minerals, Havilah Resources and Austrare.
The full list of Winners and Losers for the week ending 12 July:
Data courtesy of Baker Young Limited.
