The Australian Strategic Materials Ltd (ASX: ASM) share price won’t be going anywhere on Friday.
This comes as the company requested its shares be placed in a trading halt today.
At such, the emerging critical metals producer’s shares are frozen at $5.26 cents apiece.
What’s happening with Australian Strategic Materials?
Prior to the market opening, management requested the Australian Strategic Materials share price be halted while it prepares an announcement.
According to the release, the company is planning to make an announcement in relation to an equity funding agreement and revisions to a framework agreement.
It’s worth noting that Australian Strategic Materials shares have lost considerable value in the past month. Its shares are now down more than 26% after touching an 11-month low of $5.20 yesterday.
The company has requested the trading halt remains in place until Tuesday 17 May or following the release of the announcement, whichever comes first.
Project ready for construction
Headquartered in Western Australia, the company is focused on supplying high-purity metals, alloys and powders to global manufactures.
These advanced materials are used in the clean energies, electric vehicles, aerospace, electronics, and communications space.
Australian Strategic Materials wholly owns the Dubbo Project which holds rare earths, zirconium, niobium, hafnium, tantalum, and yttrium.
With all major approvals and licences in place, the project is ready for construction, subject to financing.
The company intends to develop the site to meet the high demand of a range of existing and future technologies.
Notably, once established, the project will be one of the few supply options outside China, according to the company.
About the Australian Strategic Materials share price
Over the past 12 months, Australian Strategic Materials shares have risen by 24% following strong investor hype in mid-2021.
Although, when looking since the start of the current year, its shares have receded to post a decline of 50%.
Based on valuation grounds, Australian Strategic Materials has a market capitalisation of roughly $775.65 million.
The post Why is the Australian Strategic Materials share price frozen today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras 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 Scott Phillips.
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