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Why these 3 ASX shares are in trading halts

The Australian share market may be on course for another day of gains in early trade, but not all shares will be able to benefit from the positive investor sentiment.

This is because this morning the three shares listed below have requested a trading halt. Here’s why:

Kidman Resources Ltd (ASX: KDR)

This lithium miner has requested a trading halt while it prepares an announcement in relation to an update on development activities at its Mt Holland Lithium Project. Management has requested that its shares remain halted until the earlier of the release of an announcement or the commencement of trade on Monday May 7. At this stage it is unclear whether this will be a positive update or a negative one, but it is worth remembering that last month management advised of high level interest from various parties seeking lithium hydroxide offtake.

Queensland Bauxite Ltd (ASX: QBL)

This bauxite miner and medicinal cannabis company has requested that its share be suspended while it finalises the release of a material announcement relating to a significant and strategic acquisition by its subsidiary Medical Cannabis Limited. Management expects to release the announcement either later today or prior to the commencement of trade on Monday. Last month the company advised that Wesfarmers Ltd’s (ASX: WES) Coles supermarket business is now selling hemp products provided by Medical Cannabis Limited.

Sirtex Medical Limited (ASX: SRX)

This regenerative medicine company has requested a trading halt “pending the release of an announcement on a recent material development which may affect the current Scheme of Arrangement” with Varian Medical Systems. Sirtex’s shares are expected to be offline until Tuesday May 8. This morning SIrtex advised that by orders of the Federal Court of Australia, two class actions have been consolidated and will be set down for hearing commencing sometime in April 2019. I feel it would be a disaster for shareholders if Varian Medical Systems’ $28.00 per share acquisition fell through.

Those shares may be offline today, but these top blue chips are trading and in my opinion could be great investments.

Top 3 ASX Blue Chips To Buy In 2018

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. 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.

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