Why is the Novonix (ASX:NVX) share price frozen today?

Here's what we know about Novonix's surprise capital raise.

| More on:
A dollar sign embedded in ice, indicating a share price freeze or trading halt

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 Novonix Ltd (ASX: NVX) share price is frozen today as the company prepares to release an announcement to the market.

The company requested the ASX halt the trading of its shares as it undertakes a strategic capital raise.

The Novonix share price finished Friday's session trading for $3.02.

Let's take a closer look at the graphite exploration and battery technology company's trading halt.

Novonix freezes over

The Novonix share price is frozen while the company gears up to release news of a strategic capital raise.

Unless the freeze is extended, Novonix's shares will begin trade when the company makes its next announcement, or when the market opens on 11 August, whichever comes first.

The capital raise comes at what appears to be an odd time for the Novonix share price.

Novonix's latest quarterly cash flow report stated the company has enough cash to run its current operations for another 140 quarters. That's a whopping 35 years' worth of funding.

Additionally, Novonix underwent a capital raise in February. The capital raise saw Novonix raise approximately $115 million from institutional investors.

The funds were to go towards increasing the company's anode materials production capabilities to 10,000 tonnes per annum.

It also intended to begin a share purchase plan (SPP) to raise another $15 million in March. However, the SPP was first delayed, then cancelled. The company said the SPP's cancellation was due to fluctuations in the Novonix share price.

Finally, the company recently expressed interest in listing on the NASDAQ exchange.

We'll soon find out if the strategic capital raise is to do with the potential dual listing.

Although, Novonix could be raising capital for entirely different reasons. Many market watchers are likely anticipating the company's next announcement.

Novonix share price snapshot

It's been a fantastic year on the ASX for the Novonix share price.

It has gained 143.5% since the start of 2021. It has also increased by 139.6% since this time last year.

The company has a market capitalisation of around $1.2 billion, with approximately 404 million shares outstanding.

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 Brooke Cooper 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 Resources Shares

Miner looking at a tablet.
Resources Shares

Does Macquarie rate Fortescue shares a buy, hold or sell?

Down 42% in a year, does Macquarie think Fortescue shares are now a good buy?

Read more »

Cheerful businessman with a mining hat on the table sitting back with his arms behind his head while looking at his laptop's screen.
Resources Shares

Rock solid: How have mining and metals shares fared in 2025?

Who is leading so far?

Read more »

Miner looking at a tablet.
Resources Shares

Mineral Resources share price slides despite significant reserves growth

An 89% resources upgrade hasn’t boosted Mineral Resources shares today.

Read more »

Copal miner standing in front of coal.
Resources Shares

How much upside does Macquarie tip for New Hope shares?

A softer-than-expected quarter has impacted the broker's view.

Read more »

2 people at mining site, bhp share price, mining shares
Resources Shares

Rio Tinto share price pushes higher on $1.4 billion lithium agreement

Rio Tinto shares are gaining major lithium exposure.

Read more »

Miner looking at a tablet.
Resources Shares

Up 73% since April, why Mineral Resources shares could keep charging higher

A leading expert says that Mineral Resources shares remain ‘heavily undervalued’. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Resources Shares

Guess which ASX 200 mining stock is sinking 7% following its quarterly update

Let's see how this miner performed during the third quarter.

Read more »

Miner looking at a tablet.
Resources Shares

What's the latest broker ratings on BHP shares?

There's an air of caution floating about BHP shares even with bullish ratings.

Read more »