Islamabad, Sep 4: The claims that the management of Chakwal Spinning Mills Limited (PSX: CLOUD) engaged in insider trading with specific investors and withheld important information about the company’s new technological setup have been categorically refuted.
In a statement released today, the business outlined its stance and denied any wrongdoing during its continuous shift into the technology industry.
According to CLOUD, all noteworthy changes, such as the change in its business strategy and rebranding initiatives, were openly disclosed to shareholders and the appropriate regulatory agencies. The business emphasized a number of crucial aspects in this regard:
- A letter was sent to the Pakistan Stock Exchange (PSX) on August 23, 2024, clarifying the material information announced on January 9, 2024.
- The board of directors approved the change in the business line to technology and the new name, “Quantum Cloud & AI Technologies Ltd,” during a meeting held on July 12, 2024.
- The new cloud business plan was shared with all shareholders before the Extraordinary General Meeting (EOGM), and the resolutions adopted during the EOGM on August 2, 2024, which included the approval of the new name and business focus, were posted on the company’s website.
- The company appointed a new CEO, an expert in cloud and data center technologies, on August 5, 2024, and is actively recruiting additional staff to support its new business direction.
- An application for the new name and business change was submitted to the Securities and Exchange Commission of Pakistan (SECP) at its Lahore office on August 7, 2024, with all required documentation.
CLOUD also clarified that it had signed a term sheet with an SECP-regulated and registered fund. The company expressed disappointment over what it termed “baseless accusations” linking its management to insider trading, arguing that such claims were made without any substantive evidence and based purely on market speculation.
It is important to note that Quantum Cloud & AI Technologies Limited will shortly be the new name of the company. The company is going to create history by being the first to open cloud data centers in Pakistan. At now, Pakistan’s cloud industry is estimated to be worth $800 million; however, only $50 million of this is managed domestically, resulting in a substantial $750 million shortfall. At the moment, Pakistan is home to no global corporations working in this field. With this, Quantum Cloud hopes to become the first multi-cloud provider in the nation.
The company’s shareholders authorized the name and principal business focus change during an Extraordinary General Meeting (EOGM) on August 2, 2024, subsequent to the Board’s approval on July 12, 2024. A thorough statement of material facts, comprising a thorough market analysis, an investment overview, revenue predictions, and a project feasibility summary, was furnished to the members by the corporation.
