Chakwal Spinning Mills Ltd (CLOUD) has refuted allegations circulating on social media regarding insider trading and failure to disclose material information related to its new technology setup.
In a notice to the Pakistan Stock Exchange (PSX) on Wednesday, the company clarified that all required disclosures were made in accordance with regulatory guidelines.
“Chakwal Spinning Mills Ltd (CLOUD) 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 setup,” read the company’s notice to the PSX.
Chakwal Spinning Mills confirmed that a letter was sent to the PSX on August 23, 2024, clarifying material information first announced in January.
The company approved the change in business line to technology and approved a new name of “Quantum Cloud & AI Technologies Ltd” during a board meeting on July 12, 2024.
The company’s new Cloud business plan was shared with shareholders prior to an Extraordinary General Meeting (EOGM) held on August 2, 2024, and the resolutions were posted for public review.
Chakwal Spinning Mills also appointed a new CEO with expertise in Cloud and Data Centers on August 5, 2024, and is in the process of expanding its workforce.
Furthermore, the company said that it has completed formalities related to its name change and new business direction with the Securities and Exchange Commission of Pakistan (SECP) and is now awaiting final regulatory approval to begin operations under its new business model.
Chakwal Spinning Mills emphasized that it is committed to transparency and has followed all necessary steps in transitioning to its new technology-based business focus.
