Why the Dubber (ASX:DUB) share price just smashed its all-time high

The Dubber (ASX: DUB) share price surged to a new high today as the company released a response to an ASX query. We take a closer look.

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The Dubber Corp Ltd (ASX: DUB) share price rocketed almost 5% today after the company released its response to an ASX query.

The Dubber share price touched an all-time high of $2.42 in morning trade before retreating in the afternoon to close at $2.26, a rise of 0.44%.

What happened

At 9.30 this morning, Dubber responded to the ASX’s inquiry over the strong price rise prior to its Zoom Video Communications Inc (NASDAQ: ZM) announcement on 14 April. The company was asked to explain why its share price rose from $1.78 to $1.96 with increased volume on 13 April.

Crucially, with the Zoom announcement being released the following day, the ASX was inquiring about the possibility of insider trading.

Dubber responds

In response, company secretary Ian Hobson outlined how the company became aware of the situation at 8.03am on 14 April and consequently released the information before the market opened on the same day.

However, he noted that Dubber had been in discussion in the months prior, relating to a range of commercial initiatives.

This included the proposal by the company that the Dubber call recording service would be made available on the Zoom app marketplace. According to Mr Hobson, this process can take time relating to the various technical requirements.

Regarding the prior price change in Dubber’s share price, the company stated that the announcement had remained confidential between Dubber and Zoom, apart from a limited number of individuals.

As such, the company claims that it had complied with the ASX listing rules, and in particular, rule 3.1 regarding the release of information.

About the Dubber share price

Dubber is an Australian company that operates as a cloud platform service provider.

It provides a call recording, management, and access service with advanced functionality. Its product suite includes Dubber Connect, a cloud call recording and communication capture service available through a service provider.

The Dubber share price has performed well over the last year, returning 182.5% to investors.

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Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Zoom Video Communications. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Dubber. The Motley Fool Australia has recommended Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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