The All Ordinaries Index (ASX: XAO) has once again gotten out on the wrong side of the bed today and has opened lower. At the time of writing, the All Ords is down by 0.45% at 7,753 points. So perhaps enthusiasts of the Ionic Rare Earths Ltd (ASX: IXR) share price might be feeling pleased that the company isn’t trading today. Ionic Rare Earths is currently stuck at 8.2 cents per share. And that’s the level it will be staying at, at least for now.
Yes, Ionic Rare Earths shares are currently in a trading halt. This comes after the company put out an ASX notice this morning before market open confirming the halt.
We don’t know too much at this stage, but here’s what the company said this morning:
In accordance with Listing Rule 17.1 Ionic Rare Earths Limited (ASX: IXR) requests an immediate trading halt on its securities pending an announcement by the Company regarding a capital raising.
The Company requests the trading halt remain in place until the earlier of commencement of normal trading on Monday, 11th April 2022 or when the announcement concerning the capital raising is released to the market.
So we know this is the result of a planned capital raising program, but that’s about it at this stage.
A capital raising program is one way a company can raise additional capital to reinvest into its business. Or indeed for any other purpose it sees fit. A popular method is via a share purchase plan. This is where existing investors can apply for new shares at what is usually a discounted price.
But we shall have to wait and see what the company has to say on this matter before we can be certain. Until then, it’s a waiting game for investors.
Ionic Rare Earths share price snapshot
Before today’s halt, Ionic Rare Earths shares had been on a bit of a tear. The company has risen a pleasing 64% so far in 2022, rising from 5 cents a share at the start of the year to yesterday’s 8.2 cents. Ionic Rare Earths is also up a healthy 36.67% in the past month alone.
Over the past five years, investors have enjoyed gains worth a whopping 310%.
At the last traded Ionic Rare Earths share price, this company has a market capitalisation of $279.69 million.
The post Why is the Ionic Rare Earths share price frozen today? appeared first on The Motley Fool Australia.
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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 Bruce Jackson.
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