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The S&P/ASX 300 Index (ASX: XKO) is climbing in early afternoon trade, after spending the morning in negative territory.

At the time of writing, the ASX 300 is up 0.32% to 7,411 points. The index is now in the green for the past month, erasing the 4.5% loss during the “September effect”.

Let’s take a look at which ASX companies are leading the charge today.

Ioneer Ltd (ASX: INR)

The Ioneer share price is rocketing 7.75% to 69.5 cents, despite no price-sensitive news from the emerging lithium-boron company.

A reason for its shares accelerating could be that the price for lithium carbonate has accelerated in recent memory. Currently, the battery-making ingredient is fetching for a record high of 195,000 Chinese yuan a tonne. This represents a 6.8% increase week-on-week.

Paladin Energy Ltd (ASX: PDN)

Also in the spotlight today is the Paladin share price, up 5.75% to 92 cents apiece.

The uranium company’s shares are continuing to push higher following strong positive investor sentiment in the sector.

The spot price for uranium has soared further to US$48.10/lb at the time of writing. This means that the yellowcake has lifted almost 65% in a year.

Imugene Limited (ASX: IMU)

Another strong performer on the ASX 300 so far today is the Imugene share price, which is up 4.82% to 43.5 cents.

The Australian immuno-oncology focused biopharmaceutical company hasn’t released any market-sensitive news to the ASX since late last month. However, its shares have tumbled from reaching an all-time high of 51.5 cents on 24 September.

And which ASX 300 companies are heading south?

Australian Strategic Materials Ltd (ASX: ASM)

Sinking today is the Australian Strategic Materials share price, down 5.52% to $10.26.

The rare earth metals company is being sold off by investors as they take profit off the table. Ioneer shares are hovering above 60% for 2021 and are up almost 170% over the past 12 months.

Propel Funeral Partners Ltd (ASX: PFP)

Also sliding on the ASX 300 today is the Propel Funeral share price, down by 4.98% to $4.20.

The Australian-based company announced it has completed a $52.2 million institutional placement.

The capital raising efforts will see 12.25 million new shares being added at an issue price of $4.10 a pop. In addition, Propel Funeral plans to raise a further $10 million through a share purchase plan, opening on 27 October.

The post Which ASX 300 shares are the biggest winners and losers on Tuesday? appeared first on The Motley Fool Australia.

More reading

• Why is the Propel Funeral (ASX:PFP) share price down 7% today?
• Why ASX uranium shares are in focus on Tuesday
• Which ASX 300 shares are leading the way on Monday?
• Why ASX uranium shares are rallying on Monday
• Propel Funeral (ASX:PFP) share price halted ahead of cap raise

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 Propel Funeral Partners Ltd. 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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The Race Oncology Ltd (ASX: RAC) share price has been seesawing today and is now at $3.17. That’s a 0.32% gain on the previous closing price.

Race shares have been as high as $3.19 and as low as $3.08 so far today. This comes after an announcement from the company regarding another patent for its Zantrene label.

Here are the details.

Sixth US patent for drug candidate Zantrene

The release notes the US Patent and Trademarks Office (USPTO) issued a new patent on Race’s cancer drug candidate, Zantrene.

Zantrene works by inhibiting a particular kind of cancer growth accelerant in the body, known as the fat mass and obesity-associated protein (FTO).

Race is investigating its use in a number of complex conditions as both a substitute and complementary therapy.

As it relates to investors, the company is “pursuing outsized commercial returns for shareholders via its ‘three pillar’ strategy” to clinically develop Zantrene.

Race was awarded today’s patent for “protection around uses of Zantrene that improve the efficacy of Zantrene treatments”.

According to the company, the new patent is another plus in Zantrene’s launch curve, as it further expands the therapeutic utility of the compound.

It also protects Race’s ability to innovate around the flagship drug, particularly to improve patient outcomes. However, today’s news has done little to spark the Race Oncology share price.

This marks the sixth granted patent of the phase 2/3 cancer drug candidate, after a recent update earlier this month regarding the fifth patent.

The precision oncology company reckons the USPTO granting a sixth patent only serves to strengthen its growing IP position for Zantrene.

Race Oncology share price snapshot

The Race Oncology share price has boasted an outsized return profile this year to date, having climbed around 80% into the green since January 1.

It has also gained around 230% in the past 12 months. That’s well ahead of the benchmark S&P/ASX 200 index (ASX: XJO)’s return of around 19% over the same time.

At the time of writing, Race Oncology has a market capitalisation of $463 million.

The post Race Oncology (ASX:RAC) share price edges higher amid patent update appeared first on The Motley Fool Australia.

More reading

• Why the Race Oncology (ASX:RAC) share price is storming higher today
• Why the Race Oncology (ASX:RAC) share price surged 7% today
• Why is the Race Oncology (ASX:RAC) share price up 18% in a month?

The author Zach Bristow has no positions 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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The Lode Resources Ltd (ASX: LDR) share price is shooting out the lights today, up a whopping 120% to 33 cents a share.

Below, we look at the latest drilling update from the microcap ASX explorer that looks to be driving investor interest.

What drilling update was announced?

The Lode Resources share price is skyrocketing after the company reported promising results from the maiden diamond drill program at its Webbs Consol Silver Project, located in New South Wales.

Lode Resources has so far completed 6 drill holes, totalling 814 metres, at the project. It intends to drill a total of 1,500 metres. According to the release, “Mineralisation styles encountered range from coarse sulphide blebs to massive irregular sulphide veins.”

The company said that it observed “significant” zinc, lead and copper mineralisation in drill cores. It expects that assays will reveal associated silver mineralisation from the core samples.

All the drill hole intercepts have been cut and Lode has sent them to ALS in Brisbane. It estimates the results of the assays will be available in 3 to 4 weeks.

The best intercept from the 6 exploratory holes drilled to date was a “very encouraging” 27.5 metres “containing an estimated 15% sphalerite, 1% galena and 0.5% chalcopyrite”.

The company anticipates the assays will reveal silver mineralisation, as silver is known to be “strongly associated” with both sphalerite and galena at the project.

Drilling at the Webs Consol Silver Project is ongoing and Lode is testing down dip extensions alongside additional potential project targets.

Lode Resources share price and company snapshot

Lode Resources is a newcomer to the ASX, listing on 2 July 2021.

Since then, the Lode Resources share price is up 59%, compared to a gain of 2% posted by the All Ordinaries Index (ASX: XAO) over that same time.

Over the past month, Lode shares have gained 124%

Lode Resources is a junior exploration company with numerous base and precious metals projects, including 3 advanced gold, silver and copper projects. Its holdings are located in the New England Fold Belt in New South Wales.

The post Here’s why the Lode Resources (ASX:LDR) share price is rocketing 120% today appeared first on The Motley Fool Australia.

More reading

• Race Oncology (ASX:RAC) share price edges higher amid patent update
• When will the Aristocrat Leisure (ASX:ALL) share price get moving again?
• Why the Lithium Australia (ASX:LIT) share price is rocketing 9%
• ASX 200 (ASX:XJO) midday update: BHP’s Q1 update, CSL’S R&D update
• Tabcorp (ASX:TAH) share price slides after trading, demerger update

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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The Aristocrat Leisure Limited (ASX: ALL) share price remains halted today after the company announced its $5 billion proposed acquisition of Playtech yesterday. In response, the London-traded gambling software company soared 56% in value.

Aristocrat’s move to gain a foothold in the online gaming market makes it the company’s largest acquisition to date.

While shares in the ASX-listed acquirer are still frozen today, it might be useful to take a closer look at the details of the proposed deal. In addition, we will establish when Aristocrat Leisure shares might resume trading.

Strategic move into online

Residing in the S&P/ASX 200 Index (ASX: XJO), Aristocrat Leisure has become a staple of the Australian share market over the years. For a long time, the gaming machine manufacturer has operated a highly profitable business with a solid track record of growth.

However, when restrictions and lockdowns swept across the world, the company was impacted by its reliance on in-person gaming. This was reflected in a short-lived weakness in the Aristocrat share price. Meanwhile, online gaming companies charged forth through COVID-19 with many consumers turning to the online alternative.

As a result, Aristocrat Leisure is seeking to obtain its share of the US$70 billion online gaming segment via Playtech. If the deal goes through, Aristocrat will be armed with a broader range of solutions for its customers, catering to both physical and online gaming needs.

The price being paid (A$5.2 billion) for Playtech represents an 11.4 times multiple on its adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) for the last financial year. Considering it’s the third time Aristocrat has kicked the tyres on Playtech, analysts are somewhat comforted it’s a reasonable amount.

For investors, the Playtech acquisition offers an open door to the fast-growing online real money gaming (RMG) market. According to Aristocrat, this market is expected to grow at a compound annual growth rate of 13%. In fact, by 2025, the total addressable market is expected to reach US$11 billion.

When will the Aristocrat share price trade again?

At this point in time, Aristocrat Leisure shares are halted while the company raises capital for its acquisition. This involves a retail offer and an institutional offer.

If all goes to plan, the institutional offer should be filled and closed by the end of tomorrow. Subsequently, the Aristocrat Leisure share price should then resume trade on Thursday 21 October 2021.

Finally, the retail portion of the capital raise will open on Monday next week. At the time of writing, the Aristocrat Leisure share price is frozen at $45.79 apiece.

The post When will the Aristocrat Leisure (ASX:ALL) share price get moving again? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Aristocrat’s $5bn acquisition, Zip falls on Q1 update
• Aristocrat (ASX:ALL) share price halted for $5bn Playtech acquisition
• These brokers think the Aristocrat (ASX:ALL) share price can keep climbing
• Brokers name 3 ASX shares to buy today
• 2 top ASX shares that could be strong buys

Motley Fool contributor Mitchell Lawler 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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The Lithium Australia NL (ASX: LIT) share price is shooting straight for the moon – in an environmentally friendly way, of course.

The positive price movement comes as the company announces one of its subsidiaries is expanding its battery manufacturing capabilities.

At the time of writing, shares in the lithium technology company are trading for 12.5 cents – up 8.7%.

Let’s take a closer look at today’s news.

The Lithium Australia share price is blasting off

In a statement to the ASX, Lithium Australia says its subsidiary, VSPC Ltd, a developer and manufacturer of advanced cathode materials for lithium-ion batteries (LIBs), is now also producing commercial-quality lithium titanium oxide (LTO) anode powder.

Conventionally, LTO is prepared via a solid-state reaction, with titanium dioxide and lithium carbonate or lithium hydroxide as the raw materials. The materials are heated at temperatures above 800C for 12 to 24 hours to ensure high-phase purity. An LTO battery is more advantageous than other lithium-ion batteries because it is faster to charge than traditional batteries.

This news is clearly revving the engines of investors, at least judging by the rising Lithium Australia share price.

As well, Lithium Australia announced it will expand its research into other anode battery materials, including titanium niobium oxide and other niobium-based anode materials. These are often used in space and defence applications. VSPC is now developing an anode materials work program in conjunction with other organisations.

Management commentary

Adrian Griffin, Lithium Australia managing director, said

To achieve the performance desired for next-generation LIBs, improved anodes are also required. VSPC’s patented technologies are applicable to the production of both anode and cathode materials. Currently, VSPC produces the world’s highest performing LFP cathode powder and is among only a handful of companies capable of producing high-energy-density LMFP [lithium manganese ferro phosphate].

Market demand for advanced nickel and cobalt-free batteries puts VSPC in a unique position to deliver precursors that meet more exacting performance requirements. VSPC’s successful production of high-performance LTO is an Australian first, as well as a global necessity.

Lithium Australia share price snapshot

Over the past 12 months, the Lithium Australia share price has increased 150%. Year-to-date, shares in the company are up 108%.

Its 52-week high is 21 cents per share and its 52-week low is 4.8 cents per share. Lithium Australia has a market capitalisation of approximately $125 million.

The post Why the Lithium Australia (ASX:LIT) share price is rocketing 9% appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: BHP’s Q1 update, CSL’S R&D update
• Tabcorp (ASX:TAH) share price slides after trading, demerger update
• Here’s why the Deep Yellow (ASX:DYL) share price is up 5% on Tuesday
• Cochlear (ASX:COH) share price charges higher on AGM update
• Why is the Propel Funeral (ASX:PFP) share price down 7% today?

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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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) has bounced back from a soft start and is pushing higher. The benchmark index is currently up 0.25% to 7,402.2 points.

Here’s what is happening on the ASX 200 today:

BHP shares fall on Q1 update

The BHP Group Ltd (ASX: BHP) share price is trading lower on Tuesday following the release of the mining giant’s first quarter update. The Big Australian had a tough quarter operationally, reporting production declines across a range of key commodities including iron ore and copper. However, management remains positive on the future and has held firm with its FY 2022 production guidance.

CSL R&D day

The CSL Limited (ASX: CSL) share price is edging lower following the release of its annual research and development (R&D) update. The biotherapeutics giant invested over US$1 billion in these activities during FY 2021. Among the highlights is the Seqirus business advancing its first-of-its-kind adjuvanted, cell-based seasonal influenza vaccine (aQIVc) and increasing its work on its self-amplifying mRNA (sa-mRNA) development program.

Tabcorp shares slide

The Tabcorp Holdings Limited (ASX: TAH) share price is falling on Tuesday following the release of its AGM update. At the meeting, the gaming company released a trading update for the first quarter. That update revealed that lockdowns had a negative impact on the company’s performance during the quarter. Tabcorp’s group revenue fell 7% compared to the prior corresponding period. This was driven partly by a 19% decline in Keno revenue.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Nuix Ltd (ASX: NXL) share price with a 5% gain despite there being no news out of the embattled company. The Unibail-Rodamco-Westfield CDI (ASX: URW) share price has been the worst performer on the ASX 200 with a 4.5% decline. This mirrors the declines its European listed shares recorded overnight.

The post ASX 200 (ASX:XJO) midday update: BHP’s Q1 update, CSL’S R&D update appeared first on The Motley Fool Australia.

More reading

• Tabcorp (ASX:TAH) share price slides after trading, demerger update
• CSL (ASX:CSL) share price trades flat despite annual R&D update
• BHP (ASX:BHP) share price on watch after Q1 update and reaffirming guidance
• 2 interest rate hikes by the end of 2022? Seriously?
• What is the outlook for the NAB (ASX:NAB) share price?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. 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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The Tabcorp Holdings Limited (ASX: TAH) share price is sliding in morning trade and is currently changing hands at $5.185.

Shares in the gaming and wagering giant are on the move today as the company released a key update regarding its Q122 business activity and planned demerger.

Here are the details.

Demerger details emerge

Tabcorp released the addresses and presentation delivered by key executives at its AGM in the note today.

The presentation covers a number of the salient points regarding its first quarter performance as well as its proposed demerger.

Recall that back in July, Tabcorp first announced its intention to pursue a demerger and create two ASX-listed entities known as Lotteries & KenoCo (LK) and Wagering & GamingCo.

The company is putting forward the LK segment as a potential demerger to its shareholders next year, as part of its strategic review.

If completed, shareholders will receive LK shares in proportion with their existing shareholding in Tabcorp, plus get to keep their Tabcorp shares as well.

The company has a deadline of June 2022 pencilled in to complete the transaction, depending on regulatory approvals sought by the court approved scheme of arrangement.

One-off cash costs of around $225 million to $275 million are expected to accompany the transaction, with the bolus of this spend allocated to “technology separation costs”.

Aside from this, ongoing incremental costs for the move are estimated to be between $40 million to $45 million on an annual basis, per the release.

Tabcorp is adamant these cost estimates are robust, having “undertaken a comprehensive process in estimating (them), including third party reviews, external benchmarking and detailed due diligence”.

Tabcorp group revenue down this quarter

The release also notes Tabcorp’s unaudited financial performance for the three months ended 30 September 2021.

According to the company, pandemic-induced lockdowns had a meaningful impact on the company’s earnings during the quarter.

Group revenue came in 7% lower than the prior quarter, with Keno revenue, in particular, taking a 19% hit due to statewide venue closures.

Aside from this, both wagering & media and gaming services sales were down 17.2% and 14.6% respectively from venue closures as well.

It wasn’t all downhill however, as the company’s lotteries revenue was 1.4% up on the quarter, underscored by growth in Saturday Lotto and Powerball sales, per the release.

Management also sees additional tailwinds on the horizon, as previously, demand for entertainment “has been strong when lockdown restrictions have been lifted”, a potential plus for the Tabcorp share price.

This language coincides with the lifting of various pandemic-related lockdown measures in NSW, QLD and Victoria that are progressing at this very minute.

In addition to its quarterly update, the company also reiterated its FY21 performance that was previously heard in August.

Tabcorp shares are around 0.9% in the red at last check, after rallying 6.5% in the last month and over 52% this past year.

The post Tabcorp (ASX:TAH) share price slides after trading, demerger update appeared first on The Motley Fool Australia.

More reading

• Why Macquarie tips the Tabcorp (ASX:TAH) share price to jump 22%

The author Zach Bristow has no positions in any of the stocks mentioned. The author 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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The Deep Yellow Limited (ASX: DYL) share price is rallying strongly on Tuesday, up 5.5% to $1.15.

In comparison, the All Ordinaries Index (ASX: XAO) is up 0.3% at the time of writing.

What’s driving the Deep Yellow share price?

Phase 1 follow-up drill program complete

Deep Yellow announced it had successfully completed its phase 1 follow-up drilling at the Barking Gecko prospect within its Nova joint venture project in Namibia.

The phase 1 drilling results returned encouraging results, with 13 of the 14 holes intersecting uranium mineralisation.

Deep Yellow was pleased with the exceptional thickness and grade of some of the intersections, and that all holes within the zone were mineralised.

A phase 2 drilling program to undertake further follow-up is planned to begin, at the latest, early calendar year 2022. This will happen once all results from the current drilling are fully evaluated.

Overall, the initial results remain encouraging, with Deep Yellow citing the “prospective nature of this zone being confirmed”.

A bumper day for ASX uranium shares

The surging Deep Yellow share price joins the broad-based rally taking place among uranium shares on Tuesday.

This comes after the world’s largest uranium producer, Kazatomprom, announced plans to launch its own physical uranium fund.

Similar to Sprott Asset Management and its Physical Uranium Trust, this fund will hold physical uranium as a long-term investment.

In the case of Sprott, its uranium fund has accumulated more than 30 million pounds of uranium since its inception on 19 July 2021.

During this time, uranium spot prices surged from the low US$30/lb level to a 9-year high of approximately US$50/lb on 17 September.

Kazatomprom will raise an initial US$50 million, financed by its founders. It will then raise US$500 million from institutional and/or private investors to fund its uranium purchases.

Uranium-related shares performed strongly overnight, with the Global X Uranium Exchange Traded Fund (ETF) rallying 4.72%.

The post Here’s why the Deep Yellow (ASX:DYL) share price is up 5% on Tuesday appeared first on The Motley Fool Australia.

More reading

• Why ASX uranium shares are in focus on Tuesday
• ASX uranium shares are surging this week. Here’s why
• Here’s why ASX uranium shares are booming double digits across the board on Wednesday
• Why ASX uranium shares are bouncing back on Friday
• What’s going on with the Deep Yellow (ASX:DYL) share price today?

Motley Fool contributor Kerry Sun 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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The Cochlear Limited (ASX: COH) share price has been a solid performer on Tuesday.

In morning trade, the hearing solutions company’s shares are up 2.5% to $220.50.

Why is the Cochlear share price rising today?

Investors have been bidding the Cochlear share price higher today following the release of its annual general meeting update.

As well as giving investors a breakdown on how the company performed in FY 2021, management provided its expectations for the current financial year.

The good news, and potentially why the Cochlear share price is rising today, is that management continues to forecast solid earnings growth in FY 2022.

What is expected in FY 2022?

Cochlear’s CEO and President, Dig Howitt, revealed that the company’s performance during the first quarter of FY 2022 was in line with expectations.

In light of this, Mr Howitt continues to forecast underlying earnings growth of between 12% and 20% this year.

He commented: “We provided earnings guidance for FY22 at the release of our results in August, outlining how we expect to increase underlying net profit by between 12 and 20%, and this continues to be the case.”

“Sales revenue is expected to benefit from market growth, with a continuing recovery in surgery rates across many countries more affected by COVID. We will continue our investment in market growth activities, with the net profit margin expected to remain a little below our longer‐term target of 18%,” he added.

Mr Howitt also provided colour on how both developed and emerging markets are performing.

In respect to the former, he said: “Developed markets are expected to continue to grow in FY22. While hospitals and clinics have adapted to operating during the pandemic, surgery rates continue to be variable across many countries.”

Whereas for the later, he commented: “The rate of recovery in emerging markets has varied. We expect continued improvement but at a slower rate than developed markets, with some countries well down on FY19 levels and not likely to recover fully in FY22.”

Overall, based on the Cochlear share price performance today, this appears to have gone down well with the market.

The post Cochlear (ASX:COH) share price charges higher on AGM update appeared first on The Motley Fool Australia.

More reading

• Could the Cochlear (ASX:COH) share price hit $260 by the end of 2021?
• Top broker sees 19% upside in the Cochlear (ASX:COH) share price
• Analysts name 3 stellar ASX growth shares to buy
• Leading brokers name 3 ASX shares to sell today
• Why APN Industria, Centuria Industrial, Cochlear, & Perseus Mining are tumbling

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. 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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The ,Propel Funeral Partners Ltd (ASX: PFP) share price is sinking in morning trade, down 6.8% to $4.12 per share.

Below we take a look at the company’s capital raising announcement.

What capital raising was announced?

The Propel Funeral share price is dropping after the company reported it had completed a roughly $52.2 million institutional placement.

Some 12.25 million new shares will be issued to new and existing shareholders for $4.10 per share. Even after today’s 6.8% retreat, that’s still 2 cents below the current Propel Funeral share price.

Atop the institutional placement, the company plans to raise up to $10 million more via a share purchase plan (SPP). The SPP is available to existing eligible shareholders who can subscribe for up to $30,000 worth of new shares. Propel expects the SPP offer period will open next week Wednesday, 27 October.

The company plans to use the proceeds of the placement and SPP to pay down debt and increase its available funding capacity to pursue further growth initiatives and acquisitions.

Commenting on the capital raising, Propel’s managing director Albin Kurti said:

We are delighted by the support received from Propel’s existing institutional shareholders and to be welcoming new institutional investors, who will broaden Propel’s share register. We are also pleased to offer all eligible shareholders the ability to participate in the share offering via the SPP.

We believe this is the right time to further strengthen our balance sheet, as the company seeks to continue to execute on its acquisition led growth strategy in what is a highly fragmented industry.

Propel expects settlement of the placement to occur this Friday, 22 October.

Propel Funeral share price snapshot

Despite today’s dip, the Propel Funeral share price has been a stellar performer in 2021, up 46%. That well outpaces the 11% gains posted by the The All Ordinaries Index (ASX: XAO) year-to-date.

Over the past month, Propel’s shares are up 6%.

The post Why is the Propel Funeral (ASX:PFP) share price down 7% today? appeared first on The Motley Fool Australia.

More reading

• Propel Funeral (ASX:PFP) share price halted ahead of cap raise
• Propel Funeral (ASX:PFP) share price on watch after first quarter update

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 Propel Funeral Partners Ltd. 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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