Why these ASX shares are in trading halts

AusCann Group Holdings Ltd (ASX:AC8) shares are one of three in trading halts this week. Here’s what you need to know…

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A red stop sign, indicating an ASX share or company is in a trading halt

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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.

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