The Anson Resources Ltd (ASX: ASN) share price was paused before market open on Friday.
Shares closed on Thursday at 11 cents per share.
The pause came at the request of the ASX resource and battery metals explorer. It remains in effect until the company releases a price sensitive announcement or the commencement of trading tomorrow — whichever comes first.
Why the trading halt?
The Anson Resources share price remains frozen at time of writing awaiting the company’s announcement regarding a capital raising.
Specific details of the raising have yet to be released.
However, on the last day of trading before the pause (Thursday 9 September), shares closed up 10.1%, having been up more than 19% in intraday trading.
That came after Anson released promising results from its latest battery test work.
As my Foolish colleague, Brooke Cooper, wrote on the day, “The test work, completed by Novonix Ltd (ASX: NVX), found lithium products from Anson’s Paradox Brine Project performed well in lithium-ion battery test cells.”
The results from the testing indicated Anson’s products suffered less capacity losses during ultra-high precision chargers testing. That could lead to longer life batteries, a critical goal to combat range anxiety as electric vehicle (EV) production ramps up across the globe.
Anson’s CEO Bruce Richardson commented on the test results, saying:
The purity of the Anson product provides it with a performance advantage over existing commercial products which is expected to attract lithium-ion producers that are aiming to provide a high-performance product.
While we’ll need to await Anson’s official announcement, it appears the company may be raising capital to position itself for potential growth in the booming lithium-ion market.
Anson Resources share price snapshot
The Anson Resources share price has been as stand-out performer in 2021, up 279%. By comparison the All Ordinaries Index (ASX: XAO) is up 11% year-to-date.
Over the past month, Anson’s shares are down 11%.
The post Why is the Anson Resources (ASX:ASN) share price halted? appeared first on The Motley Fool Australia.
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