Penny stock Fitbug continued its meteoric rise yesterday as shares jumped a further 60 per cent to 6.22p, leaving the wearable fitness tracker-maker perplexed as to the reason why.
Fitbug gained investors’ attention last Wednesday when the little-known firm announced a potentially lucrative deal for its £49.95 Orb wristband to be stocked in 1,800 Target stores in the US and 293 Sainsbury’s supermarkets next month, sending its 0.35p shares soaring 350 per cent to 1.7p.
Since then shares have rocketed a further 260 per cent and yesterday Fitbug admitted “it knows of no reason for the move in its share price” other than the deal.
“Our share price has been off the radar for quite a long time, we’re just a very small company at the bottom-end of Aim,” Fitbug chair Fergus Kee told City A.M.
He says that Fitbug offers a far less expensive fitness tracker than larger rival Fitbit – which it is currently pursuing legal action for trademark infringement – and this is what attracted major retailers to its products.