FrontRange Solutions` share price lost almost 10% this morning in the wake of yesterday`s withdrawal of a cautionary notice that had analysts speculating about a potential buyout.
The company announced in July that it was in talks that could affect its share price.
Analysts, basing their theories in part on the fact that the company had spoken in the past about seeking a capital injection, speculated that either a buy-in or buy-out was on the cards.
FrontRange issued a notice yesterday saying the talks had been terminated.
While he will not comment on the nature of the discussions, financial director Julian Pienaar says the company may "potentially" still seek a capital injection, but such an injection "was never anything essential".
He says FrontRange started looking at the possibility of a cash injection in January or February, but there is no pressure to seek it.
At the June year-end the company had cash of about $12 million and there are various credit lines open to it should it decide to use them.
The balance sheet was ungeared and current assets exceeded current liabilities (excluding deferred revenue) by more than 100%.
Pienaar says FrontRange is also moving towards a more appropriate cost structure.
The market, expecting a buy-out, reacted negatively to the termination of the talks. The FrontRange share, which lost 22c or 14.2% to close at 133c yesterday, was down another 13c or 9.8% at 120c this morning.
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