Tuesday, January 2, 2018

Giga Capital's shares halve on cancelled offering

Giga Capital's shares halve on cancelled offering

Stock Market Predictions

Bangalore (Global Markets) - Shares of Giga Capital Corp GIGh.V lost half of their value on Friday after it canceled a share offering and a board reorganization.

The capital pool company -- a company with no commercial operations or assets, other than cash -- said it did not get regulatory approvals for a $700,000 private placement and its proposal to replace all but one director on the board.

Shares of the company fell to 5 Canadian cents in early trade on the Toronto Venture Exchange.

Giga Capital also said it did not get approvals to continue the company into the province of British Columbia -- which means to bring a company under provincial laws and regulations on top of Canadian federal law.

The company still intends to seek shareholder approval for a six-to-one share consolidation at its annual general and special meeting at the end of August.

(Reporting by Abhiram Nandakumar in Bangalore; Editing by Prem Udayabhanu)

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