The Sayona Mining Ltd (ASX: SYA) share price has been put into the freezer this morning as the company prepares to release news of a capital raise.
Stock in the S&P/ASX 200 Index (ASX: XJO) lithium outfit last traded at 23.5 cents.
And there it will stay until the company releases its much-anticipated announcement or the market opens on Tuesday, whichever comes sooner.
Let's take a closer look at what's going on (or not going on) with the soon-to-be lithium producer on Friday.
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Sayona share price halted ahead of capital raise announcement
Market watchers might be surprised to see the Sayona Mining share price halted amid expectations of a capital raise this morning.
Indeed, it was only three weeks ago the lithium up-and-comer restated it had $97.9 million of cash on hand and no debt – enough to fund it for another five quarters.
It also boasted $200 million of unused financing facilities at the end of the December quarter.
Not to mention, the company is expecting to restart production at its North American Lithium (NAL) operation this month.
The Canadian operation's restart was also previously confirmed to be on budget and will likely see the company realising revenue. The maiden spodumene shipment from the operation is expected to sail in July.
So, why might the company be holding its hand out for extra cash? Well, we won't know for sure until Sayona shares return to trade.
It's also worth noting it's been less than 12 months since the ASX 200 company underwent its last capital raise.
It brought it $190 million through an institutional placement in May 2022, offering new shares for 18 cents apiece. That represented a 12.2% discount to the stock's prior close.
The funds went towards NAL's restart and the development of the company's northern hub.
If a capital raise were to realise such a discount today, Sayona shares would be priced at around 20.6 cents.
