The Avz Minerals Ltd (ASX: AVZ) share price won't be going anywhere on Monday after being halted from trade for the fourth time in less than a month.
According to the ASX release, the lithium-focused mineral exploration company's shares have been suspended from quotation with immediate effect in accordance with Listing Rule 17.3, pending a response to another ASX query.
Its shares will remain in suspension until a response is released by the under-fire resources company.
What is Listing Rule 17.3?
This particular listing rule indicates a suspension that is not at the company's request, but rather at the request of the ASX.
The reasons for this type of suspension can include the entity breaking a listing rule or to prevent a disorderly or uninformed market.
AVZ Minerals has come under scrutiny recently after one of its paid advisors leaked potentially market sensitive photos through social media, causing the company's share price to rally higher.
After a series of exchanges between the ASX and AVZ Minerals, management finally acknowledged what had happened. But rather than taking any real disciplinary action, advised that it has asked the advisor to "refrain from disclosing any potentially market sensitive information" on social media in the future.
In addition to this, last week Echidna Equities released a damning piece on the company alleging, amongst a number of things, that AVZ Minerals may not hold the license to mine the area which it has focussed its drilling campaigns on.
I feel there is a chance that the ASX may be requesting that the company clear up this allegation.
Should you invest?
Considering everything that has gone on at the company in recent weeks and these latest allegations, I would suggest that investors stay well clear of it.
I think that investors looking to gain exposure to the lithium industry would be better doing it through established companies such as Pilbara Minerals Ltd (ASX: PLS) or Galaxy Resources Limited (ASX: GXY).
