Tracking technology company Bluechiip (ASX:BCT) has moved to reassure investors over the decline in its share price since its listing earlier this month.
The company, which has developed a chip-based tracking technology capable of withstanding extreme temperatures, commenced public trading on June 9.
BCT shares since fell from the IPO price of $0.250 to a low of $0.150 last Friday.
But in a letter to shareholders, Bluechiip CEO Brett Schwarz and chairman Ian Kirkwood said the declining price has been on very thin trading - under $50,000 worth of transactions in 22 trades.
“Our analysis reveals that some of our pre-IPO shareholders have sold a few shares in the lead up to June 30 in a market where there are few buyers,” the letter states.
End of year tax loss selling is also affecting other ASX listed entities, the letter states, with many share prices trading at or near year-long lows.
“Whilst sharing the disappointment of the current share price...we want to reassure you that nothing has changed since the company listed,” the letter adds. “The board...remains focused on delivering shareholder wealth in the medium to long term.”
BCT shares grew 6.67 per cent in Monday's trading to $0.160.
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