By Phil Boeyen, ShareChat Business News Editor
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Monday 15th April 2002 |
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A media report in the Sunday Star Times newspaper about one of ITC's investments, Deep Video Imaging, appeared to be behind the surge in support for the stock.
The report claimed Deep Video Imaging, which is 43% owned by ITC, was "on the brink of a major deal with the US military."
"Deep Video Imaging has sold its unique 3D screen to the US military which is investigating its use in tanks and fighter planes," the paper said.
The report quoted DVI spokesman and former ITC managing director, Keith Phillips, who said that DVI's technology was being tested by several US military departments and that "if just one decided to proceed with full-scale implementation it would be worth hundreds of millions of dollars to the company."
In its response to the share price inquiry ITC told the Market Surveillance Panel that there were no matters of importance concerning the company that it was about to announce to the exchange.
However the company made reference to the weekend newspaper article.
"It may be noted that an article in this weekend's papers discussed the contract negotiations that Deep Video Imaging was conducting with the US Defense department. IT Capital has a 43% shareholding in Deep Video Imaging.
"This may be an explanation for the activity in the stock today."
Keith Phillips left his position as MD of the former high-flying ITC last April and was followed by the departure of CEO Jeff Dittus in October.
Maurice Bryham and David McKee Wright took over management of the company in January this year.
IT Capital has four companies in its portfolio - Virtual Spectator, Deep Video Imaging, Terabyte and Golden Orb.
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