iCandy (ASX:ICI) share price surges 35% in a week before being halted. Here’s why

Here are all the details on iCandy’s trading halt.

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The iCandy Interactive Ltd (ASX: ICI) share price has been put in the freezer this morning as the company prepares to announce some seemingly exciting news.

The trading halt follows a significant surge by the iCandy share price in recent days.

Since this time last week, the mobile games and digital entertainment creator’s stock has gained 35% despite no news having been released by the company.

Right now, the iCandy share price is frozen at 13.5 cents.

Let’s take a look at what the market might expect from iCandy when it defrosts its shares.

Here’s why iCandy shares are frozen

The iCandy share price will remain on ice until the company releases details of a major acquisition and capital raise (or the ASX opens on Monday morning — whichever comes sooner).

It’s worth noting that it hasn’t been long since iCandy’s last capital raise. The company conducted a placement to raise $10.5 million in December 2020. That capital raise saw iCandy shares on offer for 14 cents apiece and was heavily oversubscribed.

Additionally, iCandy’s most recent acquisition was in March 2021. Then, it purchased Singapore-based NextGamer for $1.29 million.

The company also bought a 7.78% stake in fellow game developer, Mighty Kingdom Ltd (ASX: MKL) in September. The slice cost iCandy $1.59 million.

Interestingly, the Mighty Kingdom share price is currently 27% higher than yesterday’s close. Its gains have come despite Mighty Kingdom’s silence.

Finally, in iCandy’s results for the quarter ended 30 September, the company reported it had about $7.9 million in cash in the bank and no debt.

It, therefore, stands to reason that the company’s next acquisition might be bigger than its past purchases.

It goes without saying that all eyes will be on iCandy shares over the coming trading days.

iCandy share price snapshot

Despite its strong recent performance, the iCandy share price is struggling.

It is down 3.5% year-to-date and down 32.5% since this time last year.

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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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