Why is the Poseidon (ASX:POS) share price halted?

Shares have been in a trading halt before yesterday's session.

| More on:
industrial asx share price on watch represented by builder looking through magnifying glass

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

The Poseidon Nickel Ltd (ASX: POS) share price won't be going anywhere today.  

Shares in the exploration company entered a trading halt before yesterday's session.

In addition, Poseidon also released its quarterly update earlier today.

Let's take a look at why the Poseidon share price is in a halt and how the company performed last quarter.

Poseidon share price halted on capital raise

Shares in Poseidon entered a trading halt before the commencement of yesterday's session.

At the request of the company, securities in Poseidon were placed in a halt for up to 2 business days.

Poseidon requested the trading halt pending an announcement by the company regarding a capital raising.

Poseidon did not provide further information on how much the company was looking to raise or where funds will be directed.

However, an article in the AFR's Street Talk column has provided some light on the capital raise. According to the article, Poseidon is looking to raise $20 million in a placement at 11 cents a share.

Poseidon releases quarterly report

Following its request for a trading halt yesterday, Poseidon also released its quarterly report earlier today.

For the June quarter of 2021, the company reported positive progress in its various projects. Poseidon highlighted operations from its Golden Swan Drilling project, Back Swan scoping study and Windarra Tailings project.

The company also provide a snapshot of its corporate finance performance for the quarter.

As at 30 June 2021, Poseidon noted a cash and current investment holding of $7.9 million.

The company's net cash outflow from operating and investing activities totalled $7.5 million for the quarter. In addition, Poseidon cited $6.6 million in cash expenditures for exploration and evaluation.

Approximately $3.4 million was spent on the Golden Swan drill drive, $1.9 million on exploration activities and $0.1 million on the Windarra tailings project.

Poseidon noted that there were no production or development activities for the June quarter.

Snapshot of the Poseidon share price

Poseidon is a nickel sulphide exploration and development company with three flagship projects in the Goldfields region of Western Australia.

The Poseidon share price has performed strongly in 2021, surging more than 99% since the start of the year.

Shares in the exploration company have gained significant momentum in the past month in particular.

The Poseidon share price last traded at 13.5 cents, giving the company a market capitalisation of approximately $379.1 million.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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

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

ASX shares finished the trading week on a high this Friday.

Read more »

A businessman stacks building blocks.
Technology Shares

6% gain! What's up with Block shares today?

Block shares are up more than 34% since 2 May.

Read more »

Broker looking at the share price.
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 ARB, Block, Mayne Pharma, and Paladin Energy shares are charging higher today

These shares are having a strong finish to the week. But why?

Read more »

A woman puts her hands up as she smashes and breaks through a glass ceiling.
Share Gainers

How these 5 ASX 200 stocks are smashing the benchmark this week

These fives ASX 200 stocks have made some very happy shareholders this week. Here’s how.

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why Catalyst Metals, Duratec, Nufarm, and Rio Tinto shares are dropping today

These shares are ending the week in the red. But why?

Read more »

A smiling woman at a hardware shop selects paint colours from a wall display.
Broker Notes

After its strategy day, what does Macquarie think Wesfarmers shares are worth?

Let's see what the broker is saying about this blue chip.

Read more »

Buy, hold, and sell ratings written on signs on a wooden pole.
Technology Shares

After surging 13% yesterday, are TechnologyOne shares a buy, hold or sell according to Macquarie?

Valuations matter when investing, and Macquarie feels no different.

Read more »