No, they have clarified that no definitive decision has been taken to buy GoMechanic – only speculation. The venture arm announcement has been done previously as well – basically as a signal to the market that they intend to use some/all of the cash to acquire companies. The market, rightly so, are not too impressed by this intention as they believe Cartrade might make acquire companies that are not a good fit for the company or not accretive to its earnings.
IMO if Cartrade returns back atleast half of the 1000C of cash on their books to shareholders, that should provide some floor to the stock price and less anxiety to shareholders. They can then use the rest to make well considered acquisitions if need be or better yet, merge with one of their competitors who are not public yet and are facing difficulty raising cash.
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