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- Rural and agricultural investment company Australian Rural Capital (ARC) has started the week in a trading halt as it prepares for an upcoming capital raise
- Currently, it is unknown how much the company is aiming to raise or where the funds will be spent
- ARC shares will be paused until Wednesday, March 3, or when more information about the raise is released to the market
- On the market, ARC last traded for 17.5 cents on February 26
Australian Rural Capital (ARC) has started the week in a trading halt as it prepares for an upcoming capital raise.
So far, ARC has not announced any details on the raise, meaning it is unknown how much it is aiming to raise or where the funds will be spent.
Under the halt, ARC shares will be paused until Wednesday, March 3, or when more information about the raise is released to the market.
ARC, formerly Tidewater Investment, is an investment company focusing on rural and agricultural companies, securities, schemes and entities.
The company recently announced its half-yearly report. Over the period, ARC reported a loss after provision for income tax of $211,152 for the period compared to a loss of $697,036 in the comparative period.
ARC recently distribute most of its holding in Namoi Cotton to shareholders as an in specie distribution of capital, which is a transfer of an asset rather than cash.
The company distributed 91.7 per cent of this holding, with eligible shareholders receiving nine Namoi Cotton shares for every 10 ARC shares held.
Due to this, ARC has now sold and converted most of the remaining holding in Namoi Cotton to cash, and its current cash levels are now approximately $300,000 with no debt.
On the market, ARC last traded for 17.5 cents on February 26.
