The ASX share market is having a fairly decent day of trading so far this Wednesday. At present, the All Ords has gained a robust 0.43%, putting it back over 7,700 points. But one ASX lithium stock isn’t joining in on the party.
The Winsome Resources Ltd (ASX: WR1) share price closed at $2.33 yesterday. And that’s where it’s going to stay, at least for a while.
That’s because, this morning, Winsome released an ASX announcement to the markets. This declared that the company’s shares would enter a trading halt, effective from today.
Why are Winsome Resources shares in a trading halt?
Winsome told investors that, “the trading halt is requested pending release of details of a capital raising“. It also stated that “the trading halt will remain in place until the earlier of the release of the announcement to the market or commencement of trading on Friday 3 February 2023″.
So it looks as though Winsome shares will be off the market until at least tomorrow, and probably until Friday.
Winsome hasn’t yet provided any details of this capital raising. But in an investor presentation released yesterday, the company outlined its plans for further acquisitions, as well as an intention to further exploration activity, particularly at its Decelles site, in Quebec, Canada.
It’s been a busy few months for Winsome Resources. It was only back in November last year that the company conducted a Canadian capital raising program, which netted Winsome just under $7 million at $1.67 per share.
In December, Winsome also announced that it has completed a secondary share listing on the ‘over-the-counter (OTC) US markets. This was done to provide “ease of trading for US and Canadian investors”.
So we’ll have to wait for Winsome shares to resume trading to find out how investors will react to this latest capital raising.
In the meantime, the last Winsome Resources share price gives this ASX lithium stock a market capitalisation of $363.39 million.
The post Why is ASX lithium stock Winsome Resources on ice? appeared first on The Motley Fool Australia.
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More reading
- Why BHP, Core Lithium, Santos, and Winsome shares are charging higher
- Why ASX lithium share Winsome Resources is surging 22% today
Motley Fool contributor Sebastian Bowen 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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