NetScientific clueless as to surge in share price

14th Mar 2019 14:33

(Sharecast News) - NetScientific was forced to respond to the recent skyrocketing of its share price on Thursday, with the board claiming it was not aware of any reason for such movement.The AIM-traded firm's share price was hovering above 15p on Thursday afternoon, having been as low as 3.27p as recently as 8 March.It also noted that, despite the increase in the share price over recent days, the current share price still represented a "substantial discount" to the share price prior to its update to the strategic review on 20 December.In line with circular sent to shareholders on 15 February, NetScientific said its strategy remained to seek to maximise shareholder value from the portfolio companies, based upon the remaining cash resources of the firm.It said it would do that by allocating its remaining cash to managing its stakes in those portfolio companies which the board believed provide the most realistic prospects of delivering shareholder returns within the anticipated lifespan of the company.At the current stage, the board said those portfolio companies would be Glycotest, ProAxsis and PDS.It would also assess the funding requirements of each portfolio company against its prospects of generating a shareholder return within the anticipated lifespan of the company."At this stage, Glycotest, ProAxsis and PDS do not require further funding from the company," the NetScientific board said in its statement."However, Wanda and Vortex do require further funding and, currently, have not secured such funding from third parties."NetScientific said it would also reduce its central functions and costs significantly, so that as much of the remaining cash as possible could be allocated to the portfolio companies, and it could continue to operate for as long as was reasonably possible while it seeked to generate shareholder value from the portfolio companies.As at 1425 GMT, shares in NetScientific were up 23.20% at 15.4p.