Securities in Core Lithium Ltd (ASX:CXO) have entered voluntary suspension after the company released an announcement earlier today.
What did Core Lithium announce?
Core Lithium released an announcement informing investors that the company has requested a voluntary suspension.
According to the media release, Core Lithium has requested that securities remain in voluntary suspension. This will be in place until an announcement is released to the market regarding a share placement.
The media release noted that an announcement is expected no later than 4 February, 2021.
In a previous trading halt request on 1 February, Core Lithium had advised investors of a potential voluntary suspension.
Why has Core Lithium entered voluntary suspension?
According to today's media release, the voluntary suspension is designed to provide Core Lithium's management with more time to complete the share placement.
Earlier this week, Core Lithium requested a trading halt for its securities, pending further details on a share placement. Despite slating 3 February as the announcement date, the company has not provided investors with further details.
An article published in The Australian Financial Review earlier this week speculated on Core Lithium's potential equity raising.
Stockbrokers Taylor Collison and Bell Potter have reportedly managed to raise as much as $30 million from investors. The article noted that Core Lithium was looking to undertake placement at 25 cents per shares. New shares expected to be accompanied by one-for-two option.
Core Lithium has not provided a full explanation for the share placement. The funds raised are, however, expected to advance the company's Finiss Lithium Project in the Northern Territory.
More information of the Core Lithium share price
Core Lithium is an emerging Australian lithium developer. The company's share price has soared more than 290% since the end of December 2020. Core Lithium owns 100% of it's flagship Finniss Lithium Project.
In recent market update, Core Lithium noted that the project was almost construction ready. The company also noted that start-up capital expenditure is expected to be around $85 million. This could translate to $160 million annual revenue.
At the time of writing shares in Core Lithium remain in voluntary suspension, having last traded at 34.5 cents per share.
