Why Aeris Resources, Humm, Mayne Pharma, and Steadfast shares are sinking today

These shares are ending the week in the red. But why?

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Key points

  • In afternoon trade, the S&P/ASX 200 Index is rising, reflecting overall market positivity, while some shares are underperforming due to specific corporate developments.
  • Aeris Resources and Humm Group experience significant declines due to capital raising at a discounted rate and lower loan origination volumes, respectively.
  • Mayne Pharma and Steadfast Group face steep drops related to regulatory challenges with a potential takeover and a CEO stepping aside due to a workplace complaint.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. At the time of writing, the benchmark index is up 0.55% to 8,933.9 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Aeris Resources Ltd (ASX: AIS)

The Aeris Resources share price is down over 12% to 45.5 cents. This morning, this copper miner announced that has received firm commitments to raise $80 million via an institutional placement. These funds are being raised at a discount of 45 cents per share. Commenting on the capital raising, Aeris' executive chair, Andre Labuschagne, said: "This inbound-led placement received strong support from high-quality institutional investors, both in Australia and offshore. The capital raise allows us to deleverage our balance sheet and accelerate exploration and growth initiatives across the group."

Humm Group Ltd (ASX: HUM)

The Humm Group share price is down 12% to 58.5 cents. This follows the release of the lender's quarterly update. Humm revealed that new loan origination volumes were down 14% to $845 million during the quarter. This was driven by double-digit declines in both commercial and consumer volumes. Management advised that this reflects subdued demand, increased competitive pricing pressure, and a strategic decision to originate higher credit quality assets.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is down 32% to $4.19. This has been driven by news that the pharmaceuticals company's proposed takeover could be on the brink of collapsing. This follows a letter from the Foreign Investment Review Board (FIRB). It advised that its "preliminary view is that the Proposed Acquisition would be contrary to the national interest, on the grounds that it would negatively impact the Australian economy and community." Mayne Pharma notes that the letter also states that the Treasurer is considering whether he should make orders prohibiting the acquisition.

Steadfast Group Ltd (ASX: SDF)

The Steadfast share price is down 9.5% to $5.61. This follows news that the insurance broker network operator's CEO is stepping aside following a workplace complaint. It stated: "Robert Kelly AM, the Managing Director & Chief Executive Officer has chosen to stand aside on a temporary basis to enable an external investigation to progress into a workplace complaint made against him." The company has appointed Tim Mathieson, CEO Australasian Broking, to the role of acting CEO, effective immediately.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Steadfast Group. The Motley Fool Australia has positions in and has recommended Steadfast Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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