The CCH share is continuing its downward trend, tracked by the EC-Hold share after Friday`s news that MGX`s chairman and CEO have resigned as non-executive directors from the EC-Hold board.
Both Chris Hills and Ronnie Price resigned from their positions as non-executive directors of the EC-Hold board on Friday, citing possible conflict of interest for the companies while the EC-Hold/MGX court case proceeds.
EC-Hold shareholders lodged a complaint with the Securities Regulation Panel (SRP) after the announcement of the MGX buyout. This is currently in court and both the chairman and CEO of MGX thought it prudent to step down from the EC-Hold board until the conclusion of the hearings.
At the time of MGX`s interim results in mid-February, Hills said EC-Hold had proved a major distraction for the group and if the SRP findings did not go in favour of MGX, the company was prepared to take it to appeal and to court if necessary.
MGX CEO Chris Hills says although it has always been his company`s policy to be transparent, he feels there is nothing to disclose to shareholders at the moment that would have a material impact on the company`s share price.
EC-Hold CEO Amir Lubashevsky says the court proceedings have not affected the day-to-day operations of the company, and EC-Hold and MGX continue to have an amicable working relationship.
General market trends aside, both the CCH and the EC-Hold share prices have been falling steadily. CCH is a little off its 12-month low of 41c at its 50c Monday close. This is a far cry from its R2.66 12-month high - its days of being the tech index darling now a distant memory.
While the MGX share remained relatively firm in the wake of a less than stable JSE, both EC-Hold and CCH`s share price continued their downward trend, losing a further 4c each in early trade today, placing the CCH share at 46c and EC-Hold at 111c.
Related stories:
MGX grows revenue, increases debt
Share
