Securities in Core Lithium Ltd (ASX:CXO) have entered voluntary suspension after the company released an announcement earlier today. What did Core Lithium announce? Core Lithium released an announcement informing investors that the company has requested a voluntary suspension. According to the media release, Core Lithium has requested that securities remain in voluntary suspension. This will
The post Shares in Core Lithium (ASX:CXO) enter voluntary suspension appeared first on The Motley Fool Australia. –
What did Core Lithium announce?
Core Lithium released an announcement informing investors that the company has requested a voluntary suspension.
According to the media release, Core Lithium has requested that securities remain in voluntary suspension. This will be in place until an announcement is released to the market regarding a share placement.
The media release noted that an announcement is expected no later than 4 February, 2021.
In a previous trading halt request on 1 February, Core Lithium had advised investors of a potential voluntary suspension.
Why has Core Lithium entered voluntary suspension?
According to today’s media release, the voluntary suspension is designed to provide Core Lithium’s management with more time to complete the share placement.
Earlier this week, Core Lithium requested a trading halt for its securities, pending further details on a share placement. Despite slating 3 February as the announcement date, the company has not provided investors with further details.
An article published in The Australian Financial Review earlier this week speculated on Core Lithium’s potential equity raising.
Stockbrokers Taylor Collison and Bell Potter have reportedly managed to raise as much as $30 million from investors. The article noted that Core Lithium was looking to undertake placement at 25 cents per shares. New shares expected to be accompanied by one-for-two option.
Core Lithium has not provided a full explanation for the share placement. The funds raised are, however, expected to advance the company’s Finiss Lithium Project in the Northern Territory.
More information of the Core Lithium share price
Core Lithium is an emerging Australian lithium developer. The company’s share price has soared more than 290% since the end of December 2020. Core Lithium owns 100% of it’s flagship Finniss Lithium Project.
In recent market update, Core Lithium noted that the project was almost construction ready. The company also noted that start-up capital expenditure is expected to be around $85 million. This could translate to $160 million annual revenue.
At the time of writing shares in Core Lithium remain in voluntary suspension, having last traded at 34.5 cents per share.
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.
*Returns as of June 30th
- Why the Core Lithium (ASX:CXO) share price is in a trading halt
- Here’s why the Core Lithium (ASX:CXO) share price stormed 19% higher today
- Afterpay and Creso Pharma were among the most traded shares on the ASX last week
- Here’s why the Core Lithium (ASX:CXO) share price rocketed 45% higher today
Motley Fool contributor Nikhil Gangaram 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.