MXC Holdings has taken advantage of the rise in the share price of IT managed services provider Pinnacle Technology Group to sell a chunk of its shareholding.
On 17 February, MXC sold 605,000 shares leaving it with 950,470 shares, or 2.07% of Pinnacle. At one point on that day the share price rose above 10p, having closed the previous day at 6.13p. This rise was sparked by the announcement that Pinnacle is in discussions with O2 and other mobile services providers for the ongoing provision of mobile and digital services.
On 10 December last year, MXC bought nearly 383,000 shares when the market price was 6.38p. Prior to this, Pinnacle had raised £580,000 via a placing and open offer at 6.5p a share. However in November 2013, MXC bought nearly 1.2 million shares in Pinnacle but at that time the share price was around 19p.
That suggests that MXC is still making a loss on its investment.
At 8.13p a share, Pinnacle is valued at £4.37m.