Chakwal Spinning Mills Limited (PSX: CLOUD) has denied allegations of insider trading and failure to disclose material information regarding its transition into the technology sector.
In a statement issued to the Pakistan Stock Exchange (PSX), the company refuted claims of illicit activities, emphasizing its commitment to transparency throughout its ongoing rebranding and business shift.
CLOUD clarified that all significant developments, including its new focus on technology and rebranding as “Quantum Cloud & AI Technologies Ltd,” were communicated transparently to shareholders and regulatory bodies. Key points highlighted by the company include:
A letter sent to the Pakistan Stock Exchange (PSX) on August 23, 2024, clarified material information initially announced on January 9, 2024. The board of directors approved the change in business line and the new name during a meeting on July 12, 2024.
The new cloud business plan was shared with shareholders before the Extraordinary General Meeting (EOGM), where resolutions, including the new name and business focus, were approved on August 2, 2024, and posted on the company’s website.
A new CEO, an expert in cloud and data center technologies, was appointed on August 5, 2024, and the company is actively recruiting additional staff to support its new direction.
An application for the name and business change was submitted to the Securities and Exchange Commission of Pakistan (SECP) on August 7, 2024, with all necessary documentation.
CLOUD also announced the signing of a term sheet with an SECP-regulated and registered fund. The company expressed disappointment over what it described as “baseless accusations” of insider trading, arguing that these claims were unfounded and based solely on market speculation.
The company is set to be renamed Quantum Cloud & AI Technologies Limited and aims to establish cloud data centers in Pakistan, marking a first for the country. Currently, the cloud business in Pakistan is valued at approximately $800 million, with only $50 million managed domestically. Quantum Cloud seeks to fill this $750 million gap and become Pakistan’s first multi-cloud provider.
Following board approval on July 12, 2024, shareholders endorsed the name change and new business focus during the EOGM on August 2, 2024. The company provided a comprehensive statement of material facts, including a detailed market analysis, investment overview, revenue projections, and a feasibility summary for the project.
