Shares in Calluna Plc slipped 11% to 14 pence ($0.22) yesterday after a long-awaited company statement failed to convince the market that the money-losing Scotland-based designer of microdisks is about to enjoy an upswing in its fortunes. There has been markedly increased trading activity recently in the company’s shares amid rumors of big distribution deals or a takeover from Mitsui & Co Ltd, a Japanese distributor and parts supplier.
In the end, though, the best that chairman Alan Bates could announce was a deal with Compaq Computer Corp to promote its new Type II drives with the hardware giant’s Aero 8000 handheld PCs as an additional or backup storage device. In addition, it has signed distribution deals with Mobile Planet and Tech Data Product Management.
Directors say they are confident that orders for the 1Gb Type II PC Card drives will increase. The company says it has sufficient working capital to complete the transition from the older Type III drives to Type II drives as its main product. Calluna has been a natural target for speculation among investors due to the combination of poor financial performance, a low share price and impressive technology.
