The Core Lithium Ltd (ASX: CXO) share price isn't going anywhere today.
Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed yesterday trading for 54.5 cents apiece.
And that's right where they'll stay for at least the rest of today.
So, what's going on?
Why is the Core Lithium share price halted?
The ASX 200 lithium stock is in a trading halt at the request of management.
According to an ASX release, out just before market open this morning, Core Lithium is undertaking a capital raising. Investors can expect the stock to begin trading again once the company reveals the details of that capital raising, which looks to be expected either tomorrow or Friday.
It will be interesting to see the details of this raising.
The Core Lithium share price has been struggling since lithium prices peaked at all-time highs in November and then crashed into April.
Despite a moderate rebound in the price of the battery-critical metal since April's lows, the ASX 200 lithium miner's shares remain down 46% in 2023, significantly underperforming most of its peers.
In fact, the last time the Core Lithium share price ended the day in the green was all the way back on 2 August, when the stock closed for 66.5 cents a share. That's 19% higher than the current frozen level.
So, will ASX 200 investors see a sizeable uptick in the share price once the capital raise is announced? Or will management opt to issue shares at a discount to current levels and potentially spur additional selling pressure?
Stay tuned!
