Balcatta-based ticketing company ERG says its strong cash position could have been the catalyst for its skyrocketing share price, which jumped as much as 230 per cent today.
The company was issued with a price query notice from the Australian Securities Exchange today to explain a share price jump from 0.6 cents to a high of 2c.
Shares in the company closed at 1.2c.
ERG said it was not aware of any information that it has not announced which could have caused its share price to soar.
However the company said it had lodged its financial statements which showed a cash balance of some $19 million.
ERG added that although it was in a strong cash position, the $19 million will be transferred as part of the sale of its ongoing business.
In August last year, Ingot Entities agreed to buy ERG's business operations and certain assets for $125 million.
ERG will be renamed Videlli and will retain subsidiary Integrated Transit Systems, which is currently involved in a legal battle with the New South Wales government.
