ASX queries DigitalX over share price and volume increase
The company insists that it is in compliance with the Listing Rules.
ASX today sent a request for information to blockchain-based solutions provider DigitalX Ltd (ASX:DCC) regarding the company’s share price and volume increase.
In particular, ASX refers to the following:
- A. The change in the price of DCC’s securities from a low of $0.023 on Monday, 20 July 2020, to an intraday high of $0.03 today.
- B. The significant increase in the volume of DCC’s securities traded from 20 July 2020 to 27 July 2020.
In light of this, ASX requested DCC to explain whether it is aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities, and if there is any other explanation that DCC may have for the recent trading in its securities.
In its response, DCC said it is not aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in the company’s securities.
The company notes that it continues to execute its previously announced business plan, including continuation of its Blockchain consulting and product development work.
In addition, DigitalX says that the performance of Bitcoin and other digital assets in recent times has been more stable (compared to historical volatility) and seen steady improvements. The Board notes that historically, it has not been unusual for the company’s share price to track changes in the Bitcoin price. The company also continues to hold its Bitcoin and its asset values therefore appreciate together with movements in the price of those assets.
On the basis of the above, the Directors argue that it is reasonable to deduce that these factors, or a combination of them, could lead to increased interest in the company at this time.
The company insists it is in compliance with the Listing Rules.