The Australian share market returned to form on Tuesday with a strong gain.
Three shares that missed out on this push higher due to being in trading halts today are listed below.
Here’s why they are halted:
AusCann Group Holdings Ltd (ASX: AC8)
This medicinal cannabis company requested a trading halt this morning pending the release of an announcement regarding a capital raising. AusCann’s shares are expected to remain in the trading halt until Thursday. While no details have been provided yet, the AFR has reported that AusCann aims to raise $30 million to support clinical studies and the expansion of its manufacturing facilities. Canadian cannabis giant Canopy Growth Corp, the company’s strategic partner and largest shareholder, is expected to pick up a large portion of shares at $1.10 per share.
Birimian Ltd (ASX: BGS)
This lithium-focused mineral exploration company’s shares have been placed in a halt pending the announcement of a maiden ore reserve and the findings of its updated pre-feasibility study of the Goulamina Lithium Project in Mali. This is expected to be released before the market open on Wednesday. The project could be a lucrative one for Birimian as a previous scoping study has demonstrated the potential for the company to develop Goulamina as a 1 million tonnes per annum high grade open pit mine.
Change Financial Ltd (ASX: CCA)
According to an ASX release this fintech company has requested that its shares remain in a trading halt until the commencement of normal trading on Wednesday. No details were given for the halt, but I suspect that it could be a credit raising as its cash balance was dwindling at the end of the last quarter. Considering a capital raising has looked necessary for some time, shareholders will be very disappointed that the company has taken so long to do one (if it does). Just under a month ago the company’s share price was trading close to $1.00, now it is down to a lowly 67 cents and will likely have to raise money at a discount to this.
Those shares may be in trading halts, but these quality shares aren't and can be picked up this week.
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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 Scott Phillips.