Cherry halts trading ahead of major announcement
Group's shares leap 25% in two weeks, prompting speculation over acquisitions
Cherry AB has temporarily suspended trading on Stockholm’s AktieTorget ahead of a market announcement later this week.
The firm issued a market notice containing the news yesterday morning with the trading halt coming on the back of a near 25% share rise, from SEK125 to SEK166, over the past two weeks.
Cherry CEO Fredrik Burvall told EGR more information would hit the market later this week but declined to give any more detail.
A trading halt is often a precursor to a major news announcement likely to impact share price, such as acquisitions or sell-offs.
In mid-March the chief executive of Cherry’s online division, Jonas W?hlander, told EGR that the company had filed an application for a licence with Great Britain’s Gambling Commission and expected the process to be closed in “about a months’ time”.
Following Cherry AB’s annual results in late February, group CEO Fredrik Burvall said the firm was open to acquiring brands which were already established in the UK, as part of its entrance strategy
For the 2015 financial year, Cherry reported a 91% year-on-year growth in online gaming revenues, with the near doubling of revenues enough to see the Swedish gaming operator return to profit.