Why is the BWX share price halted on Friday?

a woman wearing a dark business suit holds her hand up in a stop gesture while sitting at a desk. She has a sombre look on her face.a woman wearing a dark business suit holds her hand up in a stop gesture while sitting at a desk. She has a sombre look on her face.

The BWX Ltd (ASX: BWX) share price won’t be going anywhere today.

This comes after the company requested its shares be placed in a trading halt before market open.

For now, shares in the personal care products company are frozen at $1.17 apiece.

It’s worth noting that BWX shares hit an all-time low of $1.08 last week despite posting a small rebound recently.

Why is the BWX share price halted?

Prior to the opening bell, the company requested the BWX share price be halted while it prepares an announcement.

According to the release, the company is planning to make a statement relating to a trading update.

BWX has requested that the trading halt remains in place until Tuesday 28 June or when the announcement is made, whichever comes first.

More on the trading halt

While no further details have been given by BWX, The Australian shed more light on what could be ahead for the company.

According to the publication, BWX is preparing to notify the ASX of a profit downgrade along with a potential capital raise.

The news comes a week after Tattarang Ventures made a strategic investment in BWX and now holds a 17% stake.

Owned by the Forrest family, namely Andrew ‘Twiggy’ Forrest, Tattarang holds an extensive investment portfolio. This includes sectors across agri-food, energy, resources, property, lifestyle, and health tech.

BWX share price snapshot

Since this time last year, BWX shares have continued to come under severe selling pressure from investors, down 78%.

In 2022, the company’s shares have fallen 73%.

Based on valuation grounds, BWX presides a market capitalisation of approximately $191.25 million.

The post Why is the BWX share price halted on Friday? 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 recommended BWX Limited. 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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