Why is the BrainChip (ASX:BRN) share price having a freeze today?

The front of a man's face opens to reveal he has frozen ice for brains.

The BrainChip Holdings Ltd (ASX: BRN) share price is in the freezer on Wednesday. Here’s what we know so far.

Prior to market open this morning, the company – engaged with neuromorphic computing – paused the trading of its shares.

Soon after, they were halted at the BrainChip share price’s previous close of 62 cents.

Let’s take a closer look at the details of BrainChip’s trading halt.

Why is the BrainChip share price frozen?

BrainChip’s stock isn’t going anywhere right now as the company prepares to make a mysterious announcement.

In requesting its trading halt, BrainChip stated it’s working to “facilitate an orderly market in BrainChip’s securities to manage its continuous disclosure obligations.”

Unfortunately, that’s the only clue we have. BrainChip’s stock will remain frozen until it either releases an announcement or the ASX opens on Friday, whichever comes sooner.

The trading halt has come just days after BrainChip announced a new partnership with Japanese giant MegaChips Corporation. The company’s stock gains 21.5% on the back of the announcement.

Additionally, the BrainChip share price surged 14.8% over the first 3 weeks of November. My Foolish colleague Zach recently broke down all the news that drove the BrainChip share price in late October and early November.

Making today’s freeze more interesting is just how unusual it is. BrainChip hasn’t entered a trading halt since December 2020.

The company broke that trading halt by announcing NASA had placed an order for its Akida Early Access Evaluation Kit. Additionally, the company had penned an intellectual property licence.

The BrainChip share price surged 57% on the back of the announcements.

It goes without saying that plenty of eyes will be watching BrainChip this week in anticipation of what could be big news.

Right now, BrainChip’s shares are trading for 43% more than they were at the start of 2021.

The post Why is the BrainChip (ASX:BRN) share price having a freeze today? 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.

from The Motley Fool Australia https://ift.tt/3xfXECu

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