Cipherpoint Ltd (ASX:CPT) has been granted a trading halt by the ASX with a capital raising announcement pending.
The trading halt will be in place until the start of regular trading on Tuesday, July 7, or when an announcement is released to the market, whichever occurs earliest.
Shares last traded at 3.7 cents and are up from 1.3 cents at the close on May 18.
Cipherpoint recently closed its $500,000 share purchase plan (SPP) well oversubscribed following strong support from existing shareholders.
Acceptances totalling $1,264,500 were received, more than two times the maximum subscription of $500,000.
Due to the over-subscriptions, applications will be scaled back on a pro-rata basis according to the number of SPP shares applied for.
As a result, each accepting shareholder will receive approximately 40% of their SPP application amount, with the balance of application funds to be returned to them.