Why is the Sparc Technologies (ASX:SPN) share price on ice today?

Here's why the company's stock is staying put on Tuesday.

A businessperson sits at his desk in a cold office with snow and ice all around him and a frozen beard.

Image source: Getty Images

Key points

  • The Sparc Technologies share price is halted at $1.65 today
  • It could potentially remain frozen until the company announces a new joint venture
  • The trading halt follows the release of the company's quarterly report yesterday

The Sparc Technologies Ltd (ASX: SPN) share price has been put into the freezer today as the company prepares to release an announcement to the ASX.

While the company hasn't let many details on its forthcoming announcement slip, we do know it pertains to a "material joint venture".

Currently, the Sparc Technologies share price is halted at its previous close of $1.65.

Let's take a closer look at the graphene-focused technology company's trading halt.

Why is the Sparc Technologies share price frozen?

The Sparc Technologies share price has been halted until either Thursday morning or when the company releases its news to the market, whichever comes sooner.

Interestingly, it hasn't been long since Sparc Technologies' previous trading halt.

In October, the company broke a freeze with news of a joint venture with the University of Adelaide. The pair are working to create 'ultra-green' hydrogen – made using solar power.

Today's trading halt also follows the release of the company's report for the December quarter, which dropped yesterday. Its release pushed the Sparc Technologies share price up almost 15% on Monday.

Within the report, the company recapped previously announced news of its graphene-based additives. In December, its ecosparc additives were found to perform up to 40% better than other anticorrosive epoxy coatings.

It also noted that, as of 31 December, the company had around $3.4 million in cash.

Looking to the current quarter, the company is planning to launch its ecosparc graphene coating. It will also be advancing its bio-medical sensor project.

The company is also applying product development and testing to its composites and concrete activities.

Excitingly, Sparc Technologies might have hinted at potential partnerships yesterday. It stated it plans to continue "industry partner discussions" regarding the sensor project.

It also said, "[Sparc] will welcome any opportunity to work collaboratively with customers operating within the industrial materials sector."

Finally, it noted it's aiming to "establish further agreements with institutions" to support its activities and accelerate the commercialisation of its coatings, composites, and concrete products.

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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