Sinosoft Technology $3.8M Net Loss Due To Foreign Exchange Contracts

16th Jul 2010 15:26

LONDON (Dow Jones)--Sinosoft Technology Plc (SFT.LN), a software product company, announced Friday that the Board has conducted initial enquiries into the net loss of $3.8 million referred to in the company trading update issued on July 9, and found this loss arose from a number of foreign exchange contracts entered into in the second half of May in respect of which the company's internal stop-loss limits were not complied with. MAIN FACTS: -This breach of limits and the consequent loss were not communicated by Liu Biao, the company's Investment Officer to the Board in a timely manner. -As a consequence, he has resigned from the company. -The Board has resolved to suspend all investment activity, other than the placing of fixed deposits, pending a full review of the company's business, investment and strategic objectives. -All remaining open foreign exchange positions have therefore been closed out. -Shares at 1424 GMT down 0.25 pence, or 5%, at 4.75 pence. -By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; [email protected] (END) Dow Jones Newswires July 16, 2010 10:26 ET (14:26 GMT)