TFP Solutions Asserts That It Is Unaware Of The Rationale For UMA

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TFP Solutions Bhd, an ACE Market-listed provider of financial technology (fintech) solutions, notified Bursa Malaysia that it is unaware of the reason for the unusual market action (UMA).

The counter closed 4.55 percent or half a sen higher at 11.5 sen on Monday, with 42.42 million shares changing hands.

However, the loss-making company’s share price, which increased by 10 sen or 81 percent from early July to a peak of 23.5 sen on Sept 7, has since lost more than half of its gains after falling 12 sen or 51 percent.

TFP Solutions stated that there are no additional corporate developments connected to the group’s business and affairs that have not been previously publicised that could account for the trading activity, including those in the negotiation/discussion stage.

• A memorandum of understanding (MOU) between its indirectly owned subsidiary Jejak Semangat Sdn Bhd (JS) and special purpose company Landasan Salam Sdn Bhd (LSSB) to implement the “fiber-to-the-home & 5G” project. Both JS and LSSB had mutually decided to extend the MOU’s exclusivity period by one month, until October 14, 2021.

• Acquiring approximately 10% of the share capital of Ace Innovate Asia Sdn Bhd (AIAB) in order to diversify TFP Group’s existing businesses by adding mobile fintech-related industries. TFP and the vendors of AIAB had mutually agreed to extend the completion date for the share sale agreements by another 20 working days.

According to the group’s Monday filing with Bursa Malaysia, the board is unaware of any rumour or report regarding the group’s business or affairs, or of any other conceivable explanation for the trading activity.

Separately, in its most recent financial results for the quarter ended June 30, 2021 (2QFY21), the company reported a net loss of RM1.82 million, up from RM1.25 million a year ago, due to increased payroll costs and consulting fees associated with the hiring of additional business development consultants and staff for the fintech segment.

Quarterly revenue decreased by 20.93 percent to RM1.24 million from RM1.57 million due to fewer hardware sales in the business management solutions segment, despite increased sales of Mobile Airtime Reload.

Looking ahead, TFP predicts that the government’s ongoing efforts to accelerate digitalisation activities will create chances for the company to grow the fintech segment through brand awareness, brand loyalty, and subscriber retention measures.

“Additionally, the group intends to collaborate with government agencies in the fintech segment to conduct long-term enhancement and development of system upgrades, as well as market research analysis and marketing efforts on potential new users and targeted markets such as rural communities in Pahang and Sabah. The management team is now investigating and identifying further fintech-related products and services, which may include mobile payments and additional fintech-related company expansion in the medium to long future “It was stated.

Since fiscal year 2016, the corporation has been losing money.

Published by Zack Baharum

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