The market may be pushing higher again on Thursday, but not all shares are in a position to benefit from the bullish sentiment.
Three shares that are currently missing out because they are in trading halts are listed below. Here’s why they are halted:
Beadell Resources Ltd (ASX: BDR)
This gold miner’s shares were placed in a trading halt this morning pending an announcement to the market in relation to a capital raising. No other details were provided by the company, but this one appears to have caught shareholders by surprise. Especially given that Beadell raised $51 million at 29 cents per share just over a year ago, recently announced approval for a senior secured credit facility of up to US$60 million with Sprott Private Resource Lending, and has a share price hovering just above a 52-week low. Shareholders will no doubt be hoping that this one adds value this time.
Volpara Health Technologies Ltd (ASX: VHT)
This morning this fast-growing breast imaging analytics and analysis product provider requested a trading halt whilst it prepared an announcement regarding a capital raising. The capital raising will consist of an institutional placement and a share purchase plan. Its shares are expected to remain offline until Monday April 30. There is speculation floating around investment circles that Volpara aims to raise $18 million at 60 cents per share. Considering Volpara ended the first half with a cash balance of just NZ$1.3 million, this capital raising shouldn’t come as too much of a surprise.
Wattle Health Australia Ltd (ASX: WHA)
This fledgling infant formula and baby food company’s shares have been suspended from quotation at the request of management for almost three weeks now. Incredibly, this looks likely to remain the case for at least another two weeks. Last week Wattle Health requested until May 7 to finalise the joint venture arrangements with Organic Dairy Farmers of Australia and Niche Dairy, and a potential capital raise. That joint venture arrangement will form the Corio Bay Dairy Group, which will have the capacity to be able to process up to 200,000 litres of fresh organic milk per day. I suspect the company is aiming to diversify its operations after the sales of its infant formula products in the first half of FY 2018 were tepid at best.
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
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of VOLPARA FPO NZ. 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 Scott Phillips.
- Forget term deposits and buy these ASX dividend shares – August 10, 2020 6:00pm
- Why I would buy Goodman Group and these blue chip ASX shares – August 10, 2020 4:42pm
- Top broker thinks the IDP Education share price is going a lot higher – August 10, 2020 4:38pm