Lahore: Chakwal Spinning Mills Ltd, which is undergoing a transformation into Quantum Cloud and AI Technologies Ltd, has vehemently denied allegations of insider trading and withholding material information as it prepares for a shift to technology-oriented operations. The accusations, circulated on social media, suggested improper dealings by the company's management with certain investors related to the new technology setup.
On August 23, 2024, the company formally responded to these claims by addressing a letter to the Pakistan Stock Exchange (PSX), seeking to clarify material information first announced on January 9, 2024. The rebranding process included approving the new business name during a board meeting on July 12, 2024, where it also sanctioned a shift in business focus.
According to information available from the Pakistan Stock Exchange (PSX), Chakwal Spinning Mills took several steps to ensure transparency and involve stakeholders in its transition. These measures included a detailed disclosure of the new cloud business plan to shareholders prior to the Extraordinary General Meeting (EOGM), which officially adopted the changes on August 2, 2024. This meeting approved both the new name and business direction.
The company also appointed a new CEO on August 5, 2024, specializing in cloud and data centre technologies, signaling its serious commitment to the new business line. Further staffing updates are currently in progress as the company builds its new team.
Final administrative steps were completed with the submission of the new company name and business nature for registration at the SECP CRO Lahore office on August 7, 2024, backed by the required financial documents and approvals. Chakwal Spinning Mills has also aligned with a SECP regulated and registered fund, as per the documents submitted.
The management and directors of the company have distanced themselves from the individuals spreading rumors on social media, expressing disappointment over the unfounded associations based purely on market speculation. The company is now awaiting final regulatory approval from the SECP CRO Lahore office to commence its technology operations officially.