The Retail Food Group Limited (ASX: RFG) share price rose 29.4% yesterday, seemingly after a news.com.au interview with Retail Food Group CEO Peter George that outlined Mr George’s future plans for the company was published on Friday.
The ASX issued a ‘please explain’ to the company after RFG shares jumped from the 14 cent level it was trading at opening on Friday to the high of 22 cents reached yesterday, with the exchange operator also noting a “significant increase in the volume of RFG’s securities traded from Friday 5 July 2019.”
Retail Food Group responded yesterday afternoon by stating that it was unaware of the cause or reasons behind the move and pointing to the interview published on Friday as the probable cause of the price movements: “RFG notes the publication of media articles in the News Limited press on Friday 5 July 2019 in relation to the implementation of the turnaround strategy for RFG, previously advised to the Market.”
Although insisting that the information released in the interview was already public knowledge, RFG has also re-confirmed to the ASX that “it is exploring a range of options to reduce debt, including the potential sale of non-core assets as well as equity and other debt funding proposals. Discussions in relation to these matters are advanced and a further update will be provided to the Market in due course.”
RFG shares have fallen almost 98% since its all-time high of $7.56 (reached in February 2015), after a series of revelations regarding franchise mismanagement came to light.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.