Etherstack (ASX:ESK) shares halted as capital raising announced

The Etherstack share price has remained unchanged today after the company announced a trading halt and upcoming capital raising.

| More on:
pause button on digital screen representing asx trading pause

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

There's been no movement in the Etherstack PLC (ASX: ESK) share price today after the company announced a trading halt this morning. Etherstack shares were trading at 64 cents prior to the halt, which was requested by the company pending a further announcement regarding a "material capital raising".

The Etherstack share price has performed well this year, gaining a huge 220% in year-to-date trading. 

What Etherstack does

Etherstack is a wireless technology company that specialises in developing, manufacturing and licensing mission-critical radio technologies. The company primarily works with wireless equipment manufacturers and network operators around the globe, including the likes of Samsung Electronics and Cisco Systems Inc.

The company was founded and is based in Sydney, but is twice as large offshore than onshore. It first listed on the ASX in 2012 and is focused on the public safety, defence, utilities, transportation and resources sectors.

What happened?

This morning, trading in Etherstack shares was halted as the company announced it would be undertaking a capital raising.

Etherstack stated it would be raising material capital by way of an institutional placement. This means that only institutions, not retail investors, will have access to the additional shares at a discounted price. The company did not state whether the placement was underwritten or not.

What Now?

With the trading halt expected to last until 21 December, it is unlikely any Etherstack shares will change hands until next week. This is unless there is a prior announcement by the company prior to the market's close on Friday this week.

In announcing the capital raising, it's likely management is seeking to benefit from the company's elevated share price. Etherstack shares notably soared by 1358% in June on the back of major contract win announcements. The company's shares were trading as high as $1.75 as a result of it signing a global teaming agreement with Samsung Electronics for public safety communications.

Since its extraordinary rise, the Etherstack share price fell sharply in early July and has been trading around its current levels over the last six months. 

Should you invest $1,000 in Altium right now?

Before you buy Altium shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Altium wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A railway worker walks along the train tracks in a visi vest and speaking into a walkie talkie.
Share Market News

Are Aurizon shares a buy, hold or sell based on Macquarie's report?

Here’s what this broker has to say about this Industrials stock

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

Leading broker puts buy rating on Zip shares

Big returns could be on offer for investors according to its analysts.

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Share Market News

5 things to watch on the ASX 200 on Thursday

A positive session is expected for Aussie investors today. Here's what is happening.

Read more »

Man standing on rock next to turquoise salt lagoon.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 finally had a green session this hump day.

Read more »

gaming asx share price rise represented by slot machine paying jackpot
Broker Notes

What does Macquarie expect from Aristocrat Leisure shares when it reports on 14 May?

Here's what the broker is expecting from this gaming technology company next week.

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

Guess which ASX 300 stock just rocketed 17%!

Investors are sending the ASX 300 stock soaring higher on Wednesday. But why?

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Aurizon, JB Hi-FI, Nuix, and Platinum shares are tumbling today

These shares are falling on hump day. But why?

Read more »