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Why these ASX shares are in trading halts

The market may be pushing notably higher today, but not all ASX shares are active and taking advantage of the bullish sentiment.

Three shares that are currently in trading halts are listed below. Here’s why they are out of action:

Botanix Pharmaceuticals Ltd (ASX: BOT)

As I speculated would be the case on Monday, this morning the dermatology company’s shares were placed in a trading halt pending an announcement regarding a capital raising. According to the AFR, Bell Potter is in the market on behalf of Botanix and is seeking to place 109.1 million new shares at 11 cents each in order to raise $12 million. Although this is 21% discount to the last close price, it appears to have been a necessary move in order to take its promising BTX 1503 acne treatment through its phase 2 trial.

Buddy Platform Ltd (ASX: BUD)

This Internet of Things company’s shares have been halted pending a response to an ASX aware query. Buddy Platform’s shares have been quite volatile over the last week and ended up finishing January 26% lower than where they started it. While I think Buddy Platform has a lot of potential due to its Buddy Ohm product, its revenues thus far are not living up to expectations or its lofty valuation. Yesterday the company reported quarterly cash receipts of just $418,000.

Sundance Energy Australia Ltd (ASX: SEA)

This energy company’s shares are in a trading halt pending an announcement regarding a potential corporate transaction and associated capital raising. According to the AFR, Paul Singer’s Elliott Management is believed to have held talks with the company over a significant funding deal that could support the acquisition of US shale assets. There is speculation that these assets could include the U.S. shale assets that BHP Billiton Limited (ASX: BHP) is believed to be looking to offload. An announcement is due tomorrow and will be one to watch out for.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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