What’s going on with the Impedimed (ASX:IPD) share price?

Here’s why Impedimed’s stock is halted on the ASX.

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a doctor in a white coat with a stethoscope around his neck stands in the hallway of a hospital deep in concentration over a tablet device in his hands.

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Market watchers interested in the Impedimed Limited (ASX: IPD) share price have woken to another frosty session as the company’s stock remains frozen for a second day.

Impedimed’s shares were halted from trade yesterday while the company undergoes a capital raise.

If the company doesn’t announce the results of the capital raise today, its shares are expected to be defrosted tomorrow.

The Impedimed share price is currently frozen at Friday’s closing price of 17 cents.

 Let’s take a closer look at what the medical software company’s been up to lately.

Why is the Impedimed share price frozen?

Right now, the Impedimed share price is undergoing its second trading halt in as many weeks.

The company released its shares from the freezer last Tuesday when it announced the results of a successful trial.

The results were from Imedimed’s PIVIOT clinical trial. They showed the company’s L-Dex technology could help lower the rate of progression of chronic disease in patients with early detection of cancer-related lymphoedema.

Impressively, the Impedimed share price surged 20% on the trial’s results.

So far, the company hasn’t stated how it’s planning to spend its current capital raising.

However, as of 30 June 2021, Impedimed had around $19.7 million of cash in its wallet and no debt.

Additionally, the last time Impedimed underwent a capital raise was more than 18 months ago.

Then, the company raised around $18.2 million through an entitlement offer. Yet, that was short of its $24.9 million goal.

The raised capital was to fund the commercialisation and reimbursement of the company’s lymphoedema application in the United States, the commercialisation of its heart failure application, and the development and commercialisation of a renal failure application.

It would also fund data and software enhancements, clinical trials, and provide general working capital.

The entitlement offer saw institutional investors able to buy 13 new Impedimed shares for every 10 shares already held for 3.75 cents apiece. Participants also got 1 free option for every new share purchased.

The institutional entitlement offer raised around $10 million and saw 266.2 million new shares and an equal amount of new options handed to investors.

The retail component of the entitlement offer boasted the same ratios. It raised around $8.2 million, selling 218.6 million new shares and giving away the same number of new options.  

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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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