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Why the Digital Wine (ASX:DW8) share price is on ice

Bottles of wine or champagne on ice, indicating a trading halt or freeze for ASX wine companies
Image source: Getty Images

The Digital Wine Ventures Ltd (ASX: DW8) share price has been brought to a halt in trading today ahead of a significant announcement. As such, shares in the company remain frozen at 14.5 cents, the trading price at Friday’s market close.

The news comes on the back of a remarkable month for the company that has seen its share price rise by an impressive 107%.

What’s happening?

Shares in the company are at a standstill pending the release of an announcement regarding a material partnership agreement. 

The trading halt will remain until this Wednesday or when the company releases its news. Whichever comes first.

Investors will have to remain patient until the announcement is made. However, the Digital Wine share price has been performing well as of late.

Last week, the company signed a significant agreement with global giant eBay Inc (NASDAQ: EBAY). The agreement will enable eBay shoppers to choose wines on its platform. They then are packaged and transported by Digital Wine’s WINEDEPOT platform.

This follows a major international deal in February when Digital Wine announced a partnership with Vivino, the “world’s largest wine app and marketplace”. 

About the Digital Wine share price

Digital Wine is a Sydney-based company that invests in early-stage, tech-driven ventures that can potentially disrupt the global beverage market. To this end, the company’s primary project is WINEDEPOT.

WINEDEPOT is engaged in the distribution of premium wine. It also undertakes bulk wine production and contract wine processing. The company’s focus on the Asian retail wine market allows its customers in China to purchase wine from around the world. All at the press of a button from phones, tablets or laptops.

The Digital Wine share price has had a great year on the ASX, up 1,350% over the last 12 months. As such, the company currently boasts a market capitalisation of around $240 million.

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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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