Trading halt for Gold Coast dental group Smiles Inclusive ahead of capital raising announcement

Trading of shares in Gold Coast dental group Smiles Inclusive has ceased for the second consecutive session. Here’s why

The dental group is facing a series of legal and financial challenges. Istock

TRADING of shares in Gold Coast dental group Smiles Inclusive has ceased for the second consecutive session.

The Southport company was granted a trading halt this morning after telling the ASX it was preparing to make “an announcement by the Company to the market in relation to a capital raising that may be material to the Company”.

Smiles shares had risen 17.65 per cent to 6c before the announcement.

The halt follows a pause in trading on Friday as the company responded to an ASX price query after its sharp variations in its share price.

Smiles replied “no” to an ASX query into whether it had any information that could explain the recent trading of its securities.

It said at the time it continued “to assess capital raising options”.

Smiles Inclusive has struggled for a year. Photo: iStock

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“However, the board is of the view that the proposals being considered would not have material effect on the price or value of SIL’s securities,” Smiles told the ASX.

Earlier last week the company was forced to justify its ongoing listing on the Australian Stock Exchange after the bourse issued its second query in less than a fortnight and its third for the year to the struggling company.

The Burleigh-based group, which has faced multiple legal battles, challenges to its board make-up and repeated public attacks by current and former shareholders, is struggling with cash flow and reported an $18.9 million loss for the past financial year.

Fresh questions about the company’s financial position were raised earlier this month after dentist commission payments were late.