The Mesoblast Limited (ASX: MSB) share price is on pause following a company requested halt to trading of its securities.
The ASX granted the company's request before market open today. Prior to being put on ice, the Mesoblast share price closed yesterday's session at 93 cents apiece.
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Why is the Mesoblast share price frozen?
It appears the company is gearing up to raise additional capital from equity investors.
In the release, it said it "requests a trading halt in its securities effective immediately pending an announcement…in relation to a proposed private placement."
It is not yet understood what the capital raise is for, or what amount the company is seeking to raise from investors.
However, it intends to make the impending announcement between now and 8 August, when the trading halt will then be lifted.
Mesoblast shares have caught a bid lately and are now up more than 36% over the past month of trading, as seen in the chart below.
This gain is in line with the broad healthcare sector, which has realized similar levels of upside in the new financial year.
Despite this, the Mesoblast share price is down 54% for the last 12 months or 34% this year to date
