Insights

Etherstack (ASX:ESK) shares halted as capital raising announced

The Etherstack share price has remained unchanged today after the company announced a trading halt and upcoming capital raising.
The post Etherstack (ASX:ESK) shares halted as capital raising announced appeared first on The Motley Fool Australia. –

pause button on digital screen representing asx trading pause

There’s been no movement in the Etherstack PLC (ASX: ESK) share price today after the company announced a trading halt this morning. Etherstack shares were trading at 64 cents prior to the halt, which was requested by the company pending a further announcement regarding a “material capital raising”.

The Etherstack share price has performed well this year, gaining a huge 220% in year-to-date trading. 

What Etherstack does

Etherstack is a wireless technology company that specialises in developing, manufacturing and licensing mission-critical radio technologies. The company primarily works with wireless equipment manufacturers and network operators around the globe, including the likes of Samsung Electronics and Cisco Systems Inc.

The company was founded and is based in Sydney, but is twice as large offshore than onshore. It first listed on the ASX in 2012 and is focused on the public safety, defence, utilities, transportation and resources sectors.

What happened?

This morning, trading in Etherstack shares was halted as the company announced it would be undertaking a capital raising.

Etherstack stated it would be raising material capital by way of an institutional placement. This means that only institutions, not retail investors, will have access to the additional shares at a discounted price. The company did not state whether the placement was underwritten or not.

What Now?

With the trading halt expected to last until 21 December, it is unlikely any Etherstack shares will change hands until next week. This is unless there is a prior announcement by the company prior to the market’s close on Friday this week.

In announcing the capital raising, it’s likely management is seeking to benefit from the company’s elevated share price. Etherstack shares notably soared by 1358% in June on the back of major contract win announcements. The company’s shares were trading as high as $1.75 as a result of it signing a global teaming agreement with Samsung Electronics for public safety communications.

Since its extraordinary rise, the Etherstack share price fell sharply in early July and has been trading around its current levels over the last six months. 

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Daniel Ewing 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.

The post Etherstack (ASX:ESK) shares halted as capital raising announced appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!