On Thursday 17 May, the share price of Pursuit Dynamics, an AIM-traded company, falls by nearly a quarter.
On the morning of Friday 18 May the company puts out this announcement, emphasising that it ”knows no reason for the recent share price falls” and that it expects to make an announcement about its joint development agreement with Proctor & Gamble on or before the publication of the company’s interim results on 24 May. That JDA with P&G being expected to provide half the company’s revenue for the year. Despite this announcement, the share price continues to fall.
At the opening of trading on Monday 21 May the company announces that P&G has informed it that P&G does not intend to proceed with the JDA. The shares go into freefall. They now stand at 12.5p – a long way from the 100p the shares were placed at in February 2012.
How very well-informed those selling shareholders were on Thursday and Friday last week!