Unfortunately for its shareholders, the Select Harvests Limited (ASX: SHV) share price missed out on the market's move higher today after the company requested a trading halt.
According to the release, Select Harvests requested for its shares to remain in a trading halt until Monday October 9 as it prepares an announcement in relation to a proposed capital raising.
No further details were given and shareholders have been left to speculate why the company needs to raise capital.
Considering the company finished FY 2017 with just a touch over $1 million in cash and cash equivalents, it appears as though the money may be required for working capital.
If this is the case, rather than to fund an earnings accretive acquisition, then Select Harvests' long-suffering shareholders may be faced with dilution next week.
Year-to-date the almond producer's shares have lost almost 37% of their value.
