Purifloh (ASX:PO3) shares enter trading halt after surging 24%

Purifloh enters a trading halt, what's going on?

The Purifloh Ltd (ASX: PO3) share price has been frozen after the company's shares entered a trading halt this afternoon. At the time trading was halted, the purification and sterilisation company's shares were sitting at $1.99, up 24.4% on yesterday's close.

pause in medical asx share price represented by doctor holding hand up in stop motion

Image source: Getty Images

What's going on?

Purifloh's shares have been halted after investors drove the company's share price 24% higher today. Additionally, the number of shares exchanged prior to the halt was 5 times greater than the average for a month.

Yesterday, the company posted a media release concerning the use of airborne prevention technology to minimise the risk of COVID-19 transmission in hotel quarantine.

Purifloh director Jon Evans said:

The recent COVID-19 outbreak in Victoria is the result of airborne transmission of the virus from hotel quarantine in Adelaide. While the long-term solution is clearly purpose-built facilities, in the short-term we need to set up those hotels with proven, effective airborne prevention transmission technology.

Furthermore, the press release stated that tests have shown Purifloh's devices can destroy up to 99.9% of airborne contaminants.

While there has been no price-sensitive news out of the company today, the market could be speculating given the renewed attention on hotel quarantine processes this week as the Victorian lockdown rolls on and additional cases continue to be reported.

What next for the Purifloh share price?

Purifloh has yet to provide an additional update regarding its trading halt. At this point in time, the reason for Purifloh share price halt is unknown.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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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