MENU

Why these ASX shares are in trading halts

The market may be pushing notably higher today but not all shares are able to benefit from the positive investor sentiment.

Three shares that are in trading halts at the moment are listed below. Here’s why they have been halted:

Dacian Gold Ltd (ASX: DCN)

This gold miner requested a trading halt while it prepares a capital raising to fund accelerated exploration programs at its Westralia and Cameron Well mines and the extinguishment of the Jupiter mine royalty obligation. The company is aiming to raise $37 million at $2.70 per share through an institutional placement and an additional $5 million through a share purchase plan. While this looks to be a good move by the company, I expect the dilution will weigh on its shares when it returns to trade on Friday.

MGC Pharmaceuticals Ltd (ASX: MXC)

This cannabis company’s shares have been placed in a trading halt pending the release of an announcement regarding the Good Manufacturing Practice (GMP) certification approval process being sought to commence production at its European Medicinal Cannabis Laboratory and Extraction Facility of pharmaceutical grade medicinal cannabis products. MGC Pharmaceuticals’ shares are expected to return to trade on Friday. I’m surprised that the company would need a trading halt to make this announcement, which could mean there’s more to it. I suspect a potential capital raising to be used to ramp up production could have been considered.

Yojee Ltd (ASX: YOJ)

One company that is in the process of conducting an equity raising is this logistics and supply chain management company. Its shares are in a trading halt until Monday while it prepares a share placement. Foster Stockbroking has been engaged as the lead manager of the placement which aims to raise $6 million at a price of 10 cents per share according to the AFR. In addition to this, the shares have been offered with a free one-for-three attaching option exercisable at 15 cents before January 2020. Yojee is raising the funds in order to build out Asia Pacific marketplaces, expand its geographical sales presence, speed up customer adoption and transaction volumes, and provide general working capital.

Forget Yojee, this ASX small cap is up 285% with no sign of stopping...

One Australian company has developed a state of the art device that's revolutionizing hospitals all over the world. Even better, this device is so profitable that the company rakes in 90% margins. That's a lot of cash. So no wonder the stock's up 285% since 2008 - with no signs of stopping...

To discover the name and code, simply click the link below. You'll discover our expert's #1 medical technology pick... and you can decide for yourself whether to get invested today.

Click here to claim your free report.

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.