"Shareholders are advised that Santova has entered into negotiations,
which if successfully concluded may have a material effect on the price
of the Company’s securities. Accordingly, shareholders are advised to
exercise caution when dealing in the Company’s securities until a further
announcement is made."
I think it means one of three things:
1. They will be acquiring a business or an asset
2. They are maybe being acquired themselves
Both these things will make their share price increase though I think and I do not see why they will put out a cautionary SENS like this if whatever they are doing will make the share price go up.
3. They may be selling off a part of their business
This might cause their share price to go down as they will be holding less assets and thus be worth less. I think it might be something like that.
I don't know though. You guys are more experienced investors and have been dealing with this much longer than me so you will be more insightful. What do you guys think it means?
