By Gavin Evans
Sept. 10 (BusinessDesk) - Shares of medicinal cannabis research firm Cannasouth rose a further 10 percent today as it said it is complying with its disclosure obligations under NZX listing rules.
The firm, which raised $10 million in a June share float priced at 50 cents each, was responding to a price inquiry from the stock exchange operator.
NZX noted Cannasouth shares had risen from 40.5 cents at the close of trading on Sept. 2, to 75 cents last night, an increase of 85.2 percent. More than 2.2 million shares changed hands yesterday, the most since listing.
The shares touched a high of 84 cents. By early afternoon, just over 1.6 million shares had traded. The shares recently traded up 2.7 percent at 77 cents.
Cannasouth’s lawyers, Corporate Counsel, said in a statement that its client continues to comply with listing rule 3.1.1 on disclosure of material information.
NZX listing rules require firms to promptly release information material to them through the exchange. They are also obliged to release information if trading in their stock is being materially influenced by false or misleading information, that otherwise appears to have come from credible sources.
Firms are not required to release material information when it is confidential, its release would breach the law, it relates to an incomplete proposal or negotiation, or it is insufficiently definite to warrant disclosure.