The 4DS Memory Ltd (ASX: 4DS) share price is frozen again after entering a trading halt yesterday.
Shares in the semiconductor developer have gone back into a halt after having resumed trade earlier this month following a nearly two-month trading suspension.
So why has 4DS Memory jumped back into a trading halt?
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What's going on with the 4DS Memory share price?
Planning for a share placement
Investors might be wondering what is going on with the 4DS Memory share price as it sits motionless at 5.9 cents today. Yesterday morning, the company entered the halt as it plans to make an announcement on a proposed capital raising.
According to the release, the proposed raising will be comprised of a placement and share purchase plan. However, until the company provides its pending announcement, there is little more known on the specifics.
The company's last capital raise was successfully conducted across June and July of last year. Back then, 4DS Memory managed to raise $4.5 million via a placement of 100 million shares at 4.5 cents a pop. In addition, an oversubscribed share purchase plan resulted in another $3.1 million of capital.
At the end of 30 September 2021, $2.86 million of cash on hand was held by the ReRAM memory developer.
Furthermore, the expected capital raising comes after the company recently provided a technical update. As a consequence of the details shared in this update, 4DS Memory noted delays to its original timeline. Considering the chipmaker is not yet profitable, this would mean more cash needed to sustain continued development.
What's next?
The trading halt is to remain in place until either the company makes its announcement or Thursday 25 November, whichever comes first.
Once the announcement is made, shareholders will have a clearer idea of how much capital the company is aiming to raise. Investors will also be looking to see at what share price 4DS Memory will attempt to raise the additional funds.
