Why is the Novonix (ASX:NVX) share price frozen today?

Here’s what we know about Novonix’s surprise capital raise.

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A dollar sign embedded in ice, indicating a share price freeze or trading halt

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The Novonix Ltd (ASX: NVX) share price is frozen today as the company prepares to release an announcement to the market.

The company requested the ASX halt the trading of its shares as it undertakes a strategic capital raise.

The Novonix share price finished Friday’s session trading for $3.02.

Let’s take a closer look at the graphite exploration and battery technology company’s trading halt.

Novonix freezes over

The Novonix share price is frozen while the company gears up to release news of a strategic capital raise.

Unless the freeze is extended, Novonix’s shares will begin trade when the company makes its next announcement, or when the market opens on 11 August, whichever comes first.

The capital raise comes at what appears to be an odd time for the Novonix share price.

Novonix’s latest quarterly cash flow report stated the company has enough cash to run its current operations for another 140 quarters. That’s a whopping 35 years’ worth of funding.

Additionally, Novonix underwent a capital raise in February. The capital raise saw Novonix raise approximately $115 million from institutional investors.

The funds were to go towards increasing the company’s anode materials production capabilities to 10,000 tonnes per annum.

It also intended to begin a share purchase plan (SPP) to raise another $15 million in March. However, the SPP was first delayed, then cancelled. The company said the SPP’s cancellation was due to fluctuations in the Novonix share price.

Finally, the company recently expressed interest in listing on the NASDAQ exchange.

We’ll soon find out if the strategic capital raise is to do with the potential dual listing.

Although, Novonix could be raising capital for entirely different reasons. Many market watchers are likely anticipating the company’s next announcement.

Novonix share price snapshot

It’s been a fantastic year on the ASX for the Novonix share price.

It has gained 143.5% since the start of 2021. It has also increased by 139.6% since this time last year.

The company has a market capitalisation of around $1.2 billion, with approximately 404 million shares outstanding.

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Motley Fool contributor Brooke Cooper 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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