Embattled Planit Technology`s share price jumped dramatically yesterday in heavy volume before the company issued a cautionary notice late yesterday afternoon.
By close of trade, its share price increase 42%, the highest volume traded for the day. The JSE surveillance department says it is looking in to the matter.
The Planit share price increased 42% to 10c yesterday and traded 5.73% of issued shares on the day.
A source within the JSE surveillance department says the department noticed the large volumes and jump in share price and is looking into the matter. He adds that he was unable to reach the company yesterday or this morning.
Planit CEO Dale Packham says investors have been waiting for the company to make an announcement that Planit had been re-capitalised.
"Yesterday the bulls climbed in. Investors have been expecting an announcement any day and the rumour that we might have secured re-capitalisation drove investors into the share," says Packham.
"Basically all you need is one guy to trigger a rumour and jump in and the market follows."
Packham believes the share price is really worth around 15c to 16c, and he says there is no reason why the price climb that started yesterday should not continue.
He confirms that Planit is currently involved in negotiations on two fronts and says a full announcement can be expected soon.
The share reached an intra-day high of 11c after it opened at 10c today, before it dropped back, trading at 9c by 11am.
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