Chakwal Spinning refutes insider trading allegations

September 04, 2024 (MLN): Chakwal Spinning Mills Ltd (PSX: CLOUD) has vehemently denied recent reports suggesting that its management was involved in insider trading activities with certain investors.

"Chakwal Spinning strongly denies the news that management of the company was involved in inside trading with certain investors and did not disclose all material information regarding the new Technology set up," the company's filing to PSX revealed today. 

In its clarification, the company said that it had earlier notified the PSX on August 23, 2024, regarding material information announced on January 9, 2024.

Key developments include the approval of a business shift to technology and a new name, "Quantum Cloud & AI Technologies Ltd," during a board meeting on July 12, 2024.

This change, along with the appointment of a new CEO specializing in Cloud and Data Centres, was communicated to shareholders and posted on the company's website.

The Extraordinary General Meeting (EOGM) held on August 2, 2024, further solidified these changes.

The company is awaiting regulatory approval from the SECP CRO Lahore office to finalize the name change and business shift. Chakwal Spinning Mills has also signed a term sheet with an SECP-regulated fund, ensuring full compliance.

The company asserts that its management has no connections with the individuals implicated in the rumours, which it dismisses as unfounded.

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