Magnis Energy Technologies Ltd (ASX: MNS) shares won't be going anywhere again on Friday.
That's because this vertically integrated lithium-ion battery technology and materials company's shares have been in a trading halt since yesterday.
This has been particularly bad timing for Magnis shares, which have missed out on the All Ordinaries index (ASX: XAO) rising over 2% since requesting a halt.
This is made all the more worse when you consider how poorly its shares have performed of late.
Since the turn of the year, the Magnis share price has lost over 60% of its value.
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Why are Magnis shares in a trading halt?
Magnis requested the trading halt on Thursday to allow it "the time it needs to finalise documentation and the disclosure in relation to a proposed material fund raising."
The release reveals that the company has requested that the trading halt continues until the earlier of the fund raising announcement and the commencement of trade on Monday.
At this stage, it is unclear how much Magnis is seeking to raise from the fund raising and how exactly it plans to go about raising the funds.
However, unfortunately for its shareholders, if it is a capital raising, it is likely to be dilutive and put further pressure on Magnis shares.
Were the company to raise the funds at a 15% discount, this would mean 12.35 cents per new share. This is a fraction off a multi-year low, which demonstrates just how dire things have got for the company recently.
It is also worth noting that the company's CEO announced his resignation last month and no replacement has been found thus far. These are hardly ideal times to be raising funds.
