Here's why the Clean TeQ (ASX:CLQ) share price tumbled 10% today

While the All Ords is posting a solid day, the Clean TeQ share price is down more than 10%. We take a look at why…

| More on:
falling asx share price represented by child looking shocked at computer screen

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The Clean TeQ Holdings Limited (ASX: CLQ) share price is down 10.3% today. This as the company emerges from a 2-day trading halt to announce a $19 million capital raising via a private share placement.

Although well down from its 8 September 2020 highs of 38 cents per share, at today's 26 cents, the Clean TeQ share price remains up 18.2% year-to-date.

By comparison, the All Ordinaries Index (ASX: XAO) is up 1.3% so far in 2020.

What does Clean TeQ do?

Based in Melbourne, Clean TeQ Holdings provides services in metals recovery and industrial water treatment. The company applies its proprietary continuous ion exchange technology via its wholly owned subsidiary, Clean TeQ Water.

Clean TeQ also owns 100% of the Clean TeQ Sunrise Project in New South Wales. The company counts this amongst the largest cobalt deposits outside of Africa. It also has some of the largest and highest-grade accumulations of scandium on the planet.

Why did the Clean TeQ share price plummet today?

Co-chair Robert Friedland and CEO Sam Riggall told the ASX today that a private placement at 25 cents per share had been subscribed for institutional and sophisticated investors out of Australia, Asia, Israel and North America.

The share placement, which will raise $19 million in capital, comes at a 13.8% discount to Clean TeQ's 29 cent share price at market close on Friday. Clean TeQ was in a trading halt this week on Monday and Tuesday and expects settlement to occur this Friday, 27 November.

Management also announced that eligible shareholders would be able to apply for up to $30,000 worth of shares at the 25-cent placement price. Clean TeQ's roughly 7,000 shareholders will be able to do so without paying any brokerage or other transaction costs.

Among other allocations, the new capital will be used to fund ongoing development and growth of the company's water purification business.

The capital will also fund additional mineral exploration at the company's tenements. These include the Phoenix Platinum Zone beneath the Sunrise laterite and the Minore Project in New South Wales. Clean TeQ is progressing a six-hole diamond core drill program targeting platinum group metals.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Business man at desk looking out window with his arms behind his head at a view of the city and stock trends overlay.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A Santos oil and gas worker wearing a hard hat stands in a yellow field looking at blueprints with an oil rig and blue sky in the background
Share Market News

Energy shares rip amid Middle East tensions while ASX 200 surges 20% from April low

ASX energy shares roared 6.49% higher while the ASX 200 lifted 0.37% and set a new record last week.

Read more »

A young man wearing a black and white striped t-shirt looks surprised.
Broker Notes

These ASX 200 shares could rise 25% to 80%

Analysts think big returns could be on offer from these shares.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors were nervous this Friday, ending the week on a sour note.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Market News

Where to invest $5,000 into ASX 200 shares this month

The team at Bell Potter is bullish on these names. But why?

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
52-Week Highs

8 ASX 200 shares hitting multi-year highs today

These shares have defied the trend, hitting new price milestones amid a day in the red for the ASX 200.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why EOS, Evolution Mining, Renascor, and Woodside shares are jumping today

These shares are ending the week on a high. But why?

Read more »