The Superloop Ltd (ASX: SLC) share price has been frozen ahead of an acquisition and capital raising announcement.
Shares in the telecommunications infrastructure company entered a trading halt prior to open this morning. The Superloop share price remains halted at $1.04.
Why is the Superloop share price on ice?
According to the release, the telecommunications infrastructure company has entered a trading halt ahead of announcing a material acquisition and a capital raising.
While yet to be confirmed, Superloop is rumoured to be readying to launch a $100 million equity raising with the help of Canaccord Genuity and UBS. The capital injection will go towards funding the acquisition of a private broadband company.
The trading halt will remain in place until after Superloop releases further details or commencement of trading on Wednesday 9 June 2021.
Superloop cash burner
Despite Superloop being a loss-making company, the last time it went to investors for additional capital was back in September 2019.
At 31 December 2021, the company’s 12-month trailing earnings came in at a loss of $3.11 million. Additionally, the Superloop share price has fallen by 4% over the last year.
Further details pertaining to the material acquisition and capital raise will be reported on once released.