Why is the Podium Minerals (ASX:POD) share price frozen on Thursday?

The Podium Minerals Ltd (ASX: POD) share price is in the freezer today while the company prepares to release news of a capital raise.

The company’s shares are expected to remain frozen until it either releases word of the capital raise or the market opens on Monday, whichever comes sooner.

Until then, the Podium Minerals share price will remain halted at its previous closing price of 33 cents.

Let’s take a closer look at the company’s business and cash position.

What does Podium Minerals do?

Podium Minerals is an exploration company focused on platinum group metals, gold, and base metals. It owns and operates Western Australia’s Parks Reef PGM Project.

The company has completed several drill programs at the project and is currently embarking on its deepest yet.

The latest drill program will initially see 2 diamond drill holes extending 750 metres downwards. It will be co-funded by the Western Australian Government.

Podium Minerals’ cash position

The last time the market got a look at Podium Minerals’ cash position was when it released its earnings for financial year 2021.

The Podium Minerals share price gained 9% on the back of the company’s annual earnings report.

As of 30 June 2021, the company had around $3 million of cash and cash equivalents and $332,949 of liabilities.

Over financial year 2021, the company received $198,849 of revenue and recorded a net loss after tax of around $1.2 million.

Additionally, it’s been around 15 months since the company last completed a capital raise.

Back then, it underwent a placement and share purchase plan, each worth $500,000. Both the placement and share purchase plan offered new shares in the company for 1.6 cents apiece.

The share purchase plan was ultimately oversubscribed by more than 100%, bringing in $1.04 million. Of that, $110,000 was from directors’ investments.

The funds were to go towards growing the Parks Reef Project.

Podium Minerals share price snapshot

This year has been a good one for the Podium Minerals share price.

It has gained 200% since the start of 2021. It’s also 371% higher than it was this time last year.

The post Why is the Podium Minerals (ASX:POD) share price frozen on Thursday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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