What dragged on the Aussie Broadband (ASX:ABB) share price today?

It seems a key update wasn't enough to get investors biting today.

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The Aussie Broadband Ltd (ASX: ABB) share price was rangebound on Wednesday, dipping into the red in afternoon trading.

At market close, the Aussie Broadband share price is $5.29, a fall of 0.94% on the day, despite no market-sensitive information coming from the company today.

However, it released an important update after the market closed yesterday. Let's take a look.

Why up with Aussie Broadband shares today?

In its update, the company referred to an announcement made by Over the Wire Holdings Ltd (ASX: OTW) about the scheme of arrangement between its shareholders and Aussie Broadband.

The arrangement was approved by shareholders on 24 February and by the Federal Court of Australia on 3 March 2022. It was implemented yesterday.

As a result, Aussie Broadband now holds all shares in Over the Wire. Aussie Broadband confirmed all shares were successfully transferred and former Over the Wire shareholders have been paid.

Consequently, trading of Over the Wire shares was suspended yesterday, following the implementation of the scheme.

Aussie Broadband has since made changes to its board, announcing Over the Wire CEO Michael Omeros will take on the role of Executive Director.

Outgoing from the board is Chief Technology Officer John Reisinger who will continue in his executive role in day-to-day business.

According to Aussie Broadband's managing director Phillip Britt, Resinger was integral in the development of the company's software and network infrastructure.

"He has one of the most creative technical minds in the industry and we look forward to his ongoing contribution and leadership to the enlarged group," Britt said.

Despite the changes, investors didn't seem overly impressed today. Shares closed in the red on very thin volume, totalling just 33% of the company's 4-week average.

However, it's done little to derail the Aussie Broadband share price. It's staged a remarkable comeback after springing off a low of $4.01 on 27 January.

Aussie Broadband share price snapshot

In the last 12 months, the Aussie Broadband share price has gained more than 76% and is now up 10.5% for the year.

Over the past month alone, the company's shares have soared another 21% and are trading almost 9% higher in the previous 5 days of trading.

TradingView Chart

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. 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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