- Global Energy Ventures (GEV) has called a two-day trading halt as it gets ready to tap investors for some fresh capital
- The shipping company has not yet revealed how much it plans to raise of for what it will use the funds, but shares are currently in a halt until Wednesay
- The news of the capital raise may have taken some investors by surprise given GEV’s cash positive at the end of December 2020
- With over $2.1 million in the bank after going cashflow-negative by just $300,000 over the quarter, GEV had enough funding to last almost two years at current spending levels
- As such, whether this week’s planned capital raise is a simple balance sheet-booster or if something bigger is brewing is unsure
- Shares in GEV last traded for 12 cents each of Friday, February 12
Global Energy Ventures (GEV) has called a two-day trading halt as it gets ready to tap investors for some fresh capital.
The shipping company has not yet revealed exactly how much it plans to raise or for what it will use the funding, but the trading of GEV shares has been put on hold today at the request of the company.
At this stage, the trading halt will last until Wednesday, February 17, unless Global Energy releases the details of the capital raise before then.
Today’s news may have taken investors by surprise given GEV’s cash position at the end of December 2020. According to the company, it still had over $2.1 million worth of cash and cash equivalents to play with at the end of the year.
This was after going net cashflow negative by around $300,000 for the December quarter — meaning even at these spending levels, the company still had around 7 financial quarters left of funding.
As such, whether this week’s planned capital raise is a simple balance sheet-booster designed to take advantage of GEV’s recent strong share price or whether something bigger is in the works is not yet known.
GEV’s core focus is to build and integrate compressed national gas (CNG) transport solutions and other energy shipping products.
The company has also recently introduced a world-first Compressed H2 (C-H2) ship, which is designed to transport hydrogen as part of GEV’s plans to support green fuel and a low-emission future.
It’s unsure how shareholders will react to today’s news given GEV’s trading halt. Shares in the company last traded for 12 cents each on Friday, February 12 — just shy of an 11-month high of 14 cents in late January 2020.