The telecommunications infrastructure company is readying itself for an acquisition.
The post Superloop (ASX:SLC) share price frozen ahead of acquisition news appeared first on The Motley Fool Australia. –
The Superloop Ltd (ASX: SLC) share price has been frozen ahead of an acquisition and capital raising announcement.
Shares in the telecommunications infrastructure company entered a trading halt prior to open this morning. The Superloop share price remains halted at $1.04.
Why is the Superloop share price on ice?
According to the release, the telecommunications infrastructure company has entered a trading halt ahead of announcing a material acquisition and a capital raising.
While yet to be confirmed, Superloop is rumoured to be readying to launch a $100 million equity raising with the help of Canaccord Genuity and UBS. The capital injection will go towards funding the acquisition of a private broadband company.
The trading halt will remain in place until after Superloop releases further details or commencement of trading on Wednesday 9 June 2021.
Superloop cash burner
Despite Superloop being a loss-making company, the last time it went to investors for additional capital was back in September 2019.
At 31 December 2021, the company’s 12-month trailing earnings came in at a loss of $3.11 million. Additionally, the Superloop share price has fallen by 4% over the last year.
Further details pertaining to the material acquisition and capital raise will be reported on once released.
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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. owns shares of and has recommended SUPERLOOP FPO. 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.