capable of the big move.
On Thursday, the market was reminded of that fact as buyers clawed their way through the crowd to get ahold of shares in the point-of-service software maker -- in afternoon trading the issue was bouncing $3.91, or 33%, to $15.81 on heavy volume.
The impetus for the move appeared to be a press release in which Catuity updated some of the key events affecting the company in recent weeks.
"The third quarter of 2005 will be a pivotal time in the Company's turnaround strategy," John Racine, Catuity's president and CEO, announced in a press release. "We are nearing the close of the acquisition of Loyalty Magic. Equally important ... we are beginning to see some results from our new sales focus in the U.S. and adoption of our new hosted solution, while our non-recurring investments in development remain low."
Among a raft of happenings, the company is preparing to roll out its new Catuity Advanced Loyalty System, or CALS, on the Verifone Omni 3750 card reader at a 15-store chain in the Midwest, marking the first CertifiChecks client to use the new system.
CertifiChecks, of Dayton, Ohio, is the first U.S. company to adopt Catuity's new loyalty and gift card system and offer it to their base of merchants and chains.
Additionally, Catuity signed a letter of intent with Equity Commerce, a reseller of payment processing software, to be the first to use CALS on the Lipman terminal platform. Catuity is also negotiating a contract renewal with KESM Transaction Solutions, a Toronto-based payments processor, and said the company has indicated it will renew its deal through at least 2008.
On Aug. 11, the company's management presented their appeal of a delisting notice to the
Listing Qualifications Panel. Catuity has asked Nasdaq for an extension to allow the company time to complete its plan to regain compliance with Nasdaq's listing requirements.
"While the focus of many of our statements has concerned significant strategic events, it is important to know that we remain focused on running our business day-to-day," Racine explained in his statement. "No single event will drive our strategy. Rather, this is a process of executing everyday for our clients and our shareholders."
Back in June, shares of Catuity rose more than 300% in a single day after the company reached a pact with CertifiChecks to offer a hosted loyalty and gift card service to the company's merchant network. A day later, Duncan Mount, Catuity's chairman and biggest shareholder, sold most of his stock and then resigned as chairman.
"I realize that it is possible that some investors may interpret my decision to sell shares as a lack of confidence in Catuity," Mount said at the time. "That is not the case."