The share price of Metalink Ltd. (Nasdaq: MTLK;TASE: MTLK) soared 60% on Nasdaq yesterday, on larger than average trading volume. The company's share price has nearly doubled since Monday, and its market cap is now $11 million.
The reason behind the surge is market assessments about progress in Metalink's strategic plans. Last summer, the company announced that it was considering strategic and financial options for its future development, including the possible sale of the company or bringing in a strategic investor.
Last month, the company reported that it had received a going concern warning from its auditor. The company also announced that it had retained Oppenheimer as a strategic advisor to help it seek additional financing or find strategic alternatives. There has reportedly been progress in this area.
Metalink develops chipsets for high performance wireless and wireline broadband communication silicon solutions, including for 802.11n draft-compliant wireless LAN technology. The company's chipsets are incorporated in the latest product of Linksys, a unit of Cisco Systems Inc. (Nasdaq: CSCO). The company is run by co-founders CEO Tzvika Shukhman and chairman Uzi Rozenberg.
Metalink's share rose 35% on the TASE today to NIS 2.50. The share closed at $0.48 on Nasdaq yesterday.
Published by Globes [online], Israel business news - www.globes-online.com - on May 7, 2009
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