Paladin Energy has requested a trading halt on the Australian Securities Exchange, following an announcement of a proposed $300 million equity raising. The move comes after a report in the Australian Financial Review’s Street Talk column indicated Paladin’s intentions to secure additional capital. Paladin Energy is focused on uranium exploration and development with a portfolio of projects across Australia, Canada, and Africa. The company aims to become a leading global uranium producer.
The capital raise follows a period of share price decline for Paladin, with shares falling more than 14 per cent over the past 12 months. The company is seeking to bolster its financial position. Paladin Energy produced 3 million pounds of triuranium octoxide, commonly known as yellowcake, during the 2023 financial year, generating $US177.7 million ($267 million) in revenue.
As of June 30, the company reported $US89 million in cash and equivalents. The funds raised through the equity offering are expected to support Paladin’s ongoing operations and development projects. Further details regarding the terms of the equity raising are anticipated to be released upon the conclusion of the trading halt.
The halt provides the market time to digest the implications of the capital raising announcement. Investors await further information regarding the company’s plans and the utilization of the raised funds.
