In some good news for investors today, the All Ordinaries Index (ASX: XAO) is enjoying yet another strong day of gains so far this Tuesday. The All Ords is currently up a pleasing 1.08% at 7,640 points. But one ASX share isn't joining the party. That would be the Piedmont Lithium Inc (ASX: PLL) share price.
Piedmont Lithium shares were last priced at 94 cents each, as of yesterday's close. And that's where they will be staying, at least for now. That's because Piedmont Lithium requested a trading halt this morning, meaning its shares are unavailable for buying or selling.
So why is Piedmont Lithium not trading today? It's due to a capital raising that the company announced this morning. In its request for a trading halt to the ASX, Piedmont stated that "the trading halt is requested on connection with a proposed capital raising to be undertaken by way of a U.S. public offering of the Company's shares".
The shares are scheduled to return to trading on Thursday (24 March).
Piedmont Lithium share price halted amid capital raising
So Piedmont is indeed issuing more shares as part of its capital raising effort. The company will be conducting a public offering for 1.5 million new shares.
Piedmont Lithium said this about what it is intending to use the proceeds of this capital raising for:
Piedmont intends to use the net proceeds from the offering to fund the Company's share of the capital required to restart the operations at North America Lithium in Quebec, to fund exploration and definitive feasibility studies at Eyowaa in Ghana, to advance the Company's merchant lithium hydroxide plant in the southeastern United States, and to continue development of the Carolina Lithium Project, including ongoing permitting activities, engineering design, and property acquisition.
The company also said the funds could be used for "possible strategic initiatives" and for "general corporate purposes".
So that's why Piedmont Lithium shares are in a trading halt this Tuesday. We might have to wait until Thursday to find out how investors react to this news through the Piedmont Lithium share price. But until then, this company's shares look to remain on ice.
Piedmont shares are up just over 22% in 2022 but remain down by 11.3% over the past 12 months. This ASX lithium share has a market capitalisation of $1.49 billion.
