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- Montem Resources (MR1) has entered a trading halt as it gets ready to raise additional capital
- The company’s securities will remain in a trading halt until the announcement in released, or until February 19
- The capital raising may not come as a surprise to shareholders, as Montem ended December with only one quarter of funding left
- The business spent $860,000 on operating activities and over $2.5 million on investing expenses over the three month period
- It also had $3.4 million in the bank and flagged potentially tapping investors or shareholders for extra capital to top up its balance
- Before today’s trading halt, shares in MR1 were trading for 20 cents each
Montem Resources (MR1) has entered a trading halt as it gets ready to raise additional capital.
The exploration and development company’s securities will remain in a trading halt until February 19.
The company hasn’t stated how much it’s raising, but full details of the raise are expected to be made public before Friday.
Today’s flagged capital raise may not come as a surprise to some shareholders though, as Montem ended December with only one quarter of funding left.
The materials stock’s recent quarterly report showed it had around $3.4 million worth of cash in the bank at December 31.
It also spent $860,000 on operating activities and roughly $2.5 million on investing activities over the December quarter.
At that rate of spend, Montem only had 1.01 quarters of funding left heading into the second half of the 2021 financial year.
When queried about the issue by the ASX, the company stated it expects its explorations costs to be a lot lower during this current quarter.
It also flagged potentially tapping investors or shareholders for additional capital to help top up its bank balance.
Before today’s trading halt, shares in MR1 last traded for 20 cents each on Tuesday, February 16.
