The Splitit Payments Ltd (ASX: SPT) share price won't be going anywhere today.
This comes as the ASX buy now, pay later BNPL company requested that its shares be placed in a trading halt.
The payment solution provider's shares are now frozen at yesterday's closing price of 20.5 cents apiece.
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Why is the Splitit share price halted?
Before market open today, the company requested the Splitit share price to be halted while it prepares to make an announcement.
According to its release, Splitit plans to update the market regarding a proposed capital raising by a way of a placement.
Splitit has asked that the trading halt remain in place until Tuesday 30 August or following the release of its announcement, whichever comes first.
What does this mean?
While details remain unknown about the capital raise, it appears the company may be seeking to fund its growth strategy.
In its Q2 FY22 quarterly report, Splitit CEO Nandan Sheth said:
Our differentiated business model that unlocks existing credit for merchant funded instalments is becoming the most viable alternative to the high friction and high-risk legacy BNPL services. The industry is starting to recognize that Splitit's unique model stands apart in a crowded space of players extending unsecured loans to subprime consumers.
Our new strategy will continue to mature over the next 12 months. As we re-balance our existing merchant portfolio, focusing more on acquiring large profitable merchants, the benefits of this pivot will continue to be realised through 2022, and beyond.
About the Splitit share price
A rollercoaster of the past 12 months has seen the Splitit share price tank almost 60% for the period.
Ultimately, this has led the company's shares to register a loss of 18% year-to-date.
Splitit has a market capitalisation of $96.64 million with around 471 million shares outstanding.
