The decision by the CSE to adjust the price of Laser Investments (LAS.CY) following the introduction of the new shares has caused tremendous pain for investors who saw the price of Laser adjust 45% lower in a single day.
After closing at EUR 0.75 on Wednesday, the CSE adjusted the price to EUR 0.32 on Thursday, citing the introduction for trading of 37.309.323 shares, which increased the share capital of LAS to 51.739.000 shares.
CSE Director General Nondas Metaxas explained to the Financial Mirror that the price adjustment is worked on a well defined and transparent formula known to CSE Members. He added that it is very reasonable for the CSE to take the last traded price of the 14 mln LAS shares trading at EUR 0.75 on Wednesday and the 37.3 mln shares sold mostly at EUR 0.11 to come to the EUR 0.32 adjusted level.
“We cannot allow the majority shareholder of LAS to sell shares at EUR 0.11 and then expect us to allow those shares to be introduced at the same price as before,” said Metaxas.
Laser CEO and majority shareholder Lambros Christophi hotly denied the charge and said the shares were issued to finance the acquisition of Coffee Beanery operations more than six months ago.
“It’s not our fault that it took the authorities so long to allow the introduction of the new shares, which were authorized by shareholders during an EGM and all our actions were legal and made in a transparent way,” Christophi told the Financial Mirror.
Limit-up
Metaxas also rejected calls made by SFS Group Chairman Christodoulos Ellinas for the CSE to remove the limit-up ceiling on LAS. “The limit-up rule is there to act as a cooling period for investor protection, so that investors seek expert advice before trading on the shares,” said Metaxas.
Ellinas meanwhile told the Financial Mirror that he has charged the CSE action before the CySEC and requested for the limit-up ceiling to be lifted. Ellinas further added that he has informed the CySEC that his group financial subsidiary has placed buy orders on LAS for up to 20 mln shares and considers the CSE action to limit the share price movement as an act against investor interests.
