The All Ordinaries Index (ASX: XAO) is enjoying some time in the sun today. At the time of writing, the All Ords has gained a healthy 0.5%, putting it back over 7,370 points. But one ASX All Ords share is missing out on the party today. That would be the Polynovo Ltd (ASX: PNV) share price.
Polynovo shares aren't trading today. The company finished at $2.09 a share yesterday afternoon, a level it will be staying at for a while. So what's going on with this ASX healthcare share that has it barred from trading?
Well, Polynovo released an ASX announcement this morning before market open that tells us some of what is going on.
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Polynovo share price frozen amid capital raise
So yes, Polynovo shares are suspended from trading at the request of the company. The purpose of this suspension is to allow Polynovo to conduct a capital raise.
This will be in three stages. The first is a $30 million institutional share placement for institutional investors. The second is a $17 million share purchase plan, available for retail investors. The third is a $3 million share placement available only to certain directors of the company.
All up, the $47 million that Polynovo hopes to raise will:
Accelerate growth in the US and the rest of the world, including the newest markets in Canada, India and Hong Kong… This will also include the construction of a new manufacturing and R&D facility, next to the existing [Melbourne] factory, to satisfy the significant increase in demand for NovoSorb.
Eligible shareholders will have the option to apply for up to $30,000 in new Polynovo shares at a price of $1.90 each, a 9.1% discount to the company's last traded share price of $2.09.
For retail investors, the new shares issued under the placement will start trading on 21 December next month. Polynovo expects its shares to resume ASX trading tomorrow.
The Polynovo share price is up almost 34% year to date in 2022 thus far. It's also up more than 130% since May.
