Shares in 3D geospatial data company Pointerra Ltd (ASX: 3DP) are currently on ice amid a company-requested trading halt today.
The ASX hit pause on the shares shortly after the open on Friday and they’ve been in limbo ever since. Prior to the halt, the Pointerra share price was fetching 34.5 cents, down 4.17% on its previous close.
Let’s take a closer look at what’s happening.
Why is Pointerra on ASX ice?
Pointerra requested the trading halt amid the pending release of a price-sensitive announcement.
The company says this is concerning “the award of material contracts in its US operation”. There are no further details available at this time.
The halt will remain in place until the earlier of Pointerra making the abovementioned ASX announcement or the market open next Tuesday 14 December.
The announcement follows Pointerra’s previous contract updates in September. At that time, the company had secured a $1.55 million contract with Florida Power & Light across 4 projects.
It also advised of another contract with Pacific Gas & Electric and Gridvision, each valued at approximately $250,000.
The contracts involve using Pointerra’s geospatial 3D technology to model changes in key data metrics that the 2 new partners use in their operations.
For instance, the deal with Florida Power & Light will see Pointerra’s technology model changes in vegetation growth. It will then extrapolate this data to predict vegetation growth, which will hopefully facilitate increased yields.
Pointerra share price snapshot
It’s been more than a difficult year for Pointerra shareholders, who are swimming in a sea of red.
In the past 12 months, the Pointerra share price has fallen by almost 35%. The downward pressure continued in the past month of trading, with the price falling 11.5%.
These returns have lagged the benchmark S&P/ASX 200 index (ASX: XJO) which is up 10% over the past year.
The post Here’s why Pointerra (ASX:3DP) shares are halted today appeared first on The Motley Fool Australia.
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The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Pointerra Limited. The Motley Fool Australia has recommended Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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