Pinnacle Technology Holdings says it is in advanced talks with a black economic empowerment entity, Rokunda Investment Holdings.
The group has published a cautionary notice saying that the talks relate to issuing Pinnacle shares for cash.
Rokunda`s intention is to acquire a 26% shareholding in Pinnacle.
Pinnacle says the shares will be issued at a negotiated discount to the prevailing market price.
The Pinnacle share, which opened the year at 35c, closed as high as 44c on 15 January.
It was trading at 39c on the JSE this morning, 1c up on yesterday`s close.
Pinnacle, an IT products and services supplier, achieved net profit of R2.41 million for the year to 30 June 2003. This was 63% down on the profit for the previous year. Revenue of R417.82 million compared with a previous R358.88 million.
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