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The Hastings Technology Metals Ltd. (ASX:HAS) stock price will go nowhere on Monday.
It comes as the company has requested that its shares be suspended.
Currently, shares of the emerging rare earth producer are frozen at $5.42 each.
It should be noted that shares of Hastings have climbed more than 26% since the start of last week.
Why is the Hastings stock price stopped?
Before the market opened, the company requested a halt in its share price while it prepared an announcement.
According to its press release, the company is in the process of building a book as part of a fundraiser.
Hastings has requested that the trading halt remain in place until this Wednesday, September 7 or after the announcement is released, whichever comes first.
Hastings to acquire stake in Neo Performance Materials
In late August, Hastings announced that it had entered into a binding stock purchase agreement to acquire a 22.1% stake in Neo Performance Materials.
The latter is a world leader in the processing of rare earths and the production of advanced permanent magnets listed on the stock exchange in Canada.
Under the agreement, Neo shareholders will receive C$15 (AU$16.81) per share, representing total consideration of C$135 million (AU$151.27 million).
Additionally, Andrew Forrest’s Wyloo Metals will provide funding of $150 million as part of a foundational investment. This will be done by issuing guaranteed, refundable and exchangeable tickets.
Hastings said the acquisition allows a platform to explore potential partnership deals using its raw material Yangibana in Neo’s downstream rare earth operations.
Hastings Share Price Overview
Over the past 12 months, Hastings’ stock price has mostly been hovering despite a 20% gain.
Year-to-date, however, the share is up around 4%.
On the other hand, the S&P/ASX 200 Materials Index (ASX:XMJ) The sector is down 8% in 2022.
Hastings presides over a market capitalization of approximately $549 million with approximately 101 million shares outstanding.