The Hastings Technology Metals Ltd (ASX: HAS) share price won't be going anywhere on Monday.
This comes as the company requested that its shares be placed in a trading halt.
Currently, the emerging rare earths producer's shares are frozen at $5.42 apiece.
It's worth noting that Hastings shares have rocketed more than 26% since early last week.
Image source: Getty Images
Why is the Hastings share price halted?
Prior to the market opening, the company requested its share price be halted while it prepared an announcement.
According to its release, the company is in the process of a book build in relation to a capital raising.
Hastings has requested that the trading halt remains in place until this Wednesday 7 September or following the release of the announcement, whichever comes first.
Hastings to acquire interest in Neo Performance Materials
In late August, Hastings advised it had entered into a binding share purchase agreement to acquire a 22.1% stake in Neo Performance Materials.
The latter is a Canadian-listed leading global rare earth processing and advanced permanent magnets producer.
Under the deal, Neo shareholders will receive C$15 (A$16.81) per share, representing a total consideration of C$135 million (A$151.27 million).
In addition, Andrew Forrest's Wyloo Metals will provide funds of $150 million in a cornerstone investment. This will be conducted through the issuance of secured, redeemable, exchangeable notes.
Hastings stated that the acquisition enables a platform to explore potential partnership arrangements utilising its Yangibana feedstock in Neo's downstream rare earth operations.
Hastings share price snapshot
Over the past 12 months, the Hastings share price has predominately moved in circles despite posting a gain of 20%.
Year to date, however, the share is up around 4%.
In contrast, the S&P/ASX 200 Materials Index (ASX: XMJ) sector is down 8% in 2022.
Hastings presides a market capitalisation of approximately $549 million with around 101 million shares outstanding.
