The Lion Energy Ltd. (ASX: LIO) share price was a strong mover today before the company announced a trading halt.
It's worth noting that the energy producer's shares soared to an all-time record high of 10 cents. However, some profit-taking led its shares to drop to 9.6 cents, up 20.9% before the halt went into effect.
Why is the Lion Energy share price zooming higher?
A possible catalyst for the rise in Lion Energy shares today could be the release of its green hydrogen strategy presentation.
According to the update, Lion Energy has been busy positioning itself in the production of green hydrogen towards resources and technology markets.
The company established a team of hydrogen experts, which will form a Hydrogen Advisory Board to analyse optimal electrolyser locations in Australia.
The company's roadmap highlights securing land rights if there is market potential for hydrogen or ammonia. It further noted that it will determine the best value and fit for purpose solar, wind, and electrolyser technology.
In addition, Lion Energy will seek to appoint an experienced feasibility study consultant who can aid on the decision-making process.
The company hopes to establish joint ventures with international firms to build large scale solar/wind farms with energy storage facilities. This in turn would lead to the sale of green hydrogen to domestic and international markets.
Lion executive chair, Tom Soulsby commented:
We are excited to venture into green hydrogen to participate in the energy transition and to leverage Australia's comparative advantage in renewable energy. We are actively working on delivering against our objectives stated above and will make further announcements in due course.
So why is Lion Energy in a trading halt?
In late afternoon trade, Lion Energy shares were placed in a trading halt at the request of the company.
In the release, Lion Energy cited Chapter 11 of the ASX listing rules to the green hydrogen strategy.
According to the ASX, Chapter 11 falls under the title of 'Significant transactions.' This essentially means if a company proposes to make a significant change to the nature of its activities, it must provide details to the ASX before the change.
While the reason for the halt is somewhat ambiguous, investors will have to wait until this Friday or before to find out. It is expected once the announcement is provided to the ASX, the trading halt will be lifted.
Lion Energy share price summary
The Lion Energy share price continued its impressive run today before going into a trading halt. The company's shares have accelerated over 440% in the past 12 months, with close to 300% on year-to-date gains.
Lion Energy commands a market capitalisation of roughly $23 million, with approximately 238.5 million shares on issue.
