Why is the Lake Resources (ASX:LKE) stock price frozen today?

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the Lake NL Resources (ASX: LKE) stock price is going nowhere today.

ASX lithium stock closed yesterday at 91 cents, losing 3.2% in Monday’s trading.

As of today, the shares have been suspended at the request of the company.

Why is the Lake Resources stock price frozen?

According to the ASX release this morning, Lake Resources has requested that shares be suspended until market open on Thursday.

Why?

The company is working to resolve a “technical compliance issue”.

Lake Resources said it is considering whether “a clean-up prospectus should be issued or whether, in the circumstances, it should seek a court order regarding its inadvertent failure to file a clean-up notice regarding shares issued by the company on or around October 21, 2021, within 5 business days of the issue of the shares”.

Lithium miner ASX said its failure to file the cleanup notice within the required 5-day period was “due to an oversight”.

Lake Resources said it would still post a brief explanation of the issue.

What is a cleaning notice?

For a concise definition of what cleanup notices are, we defer to the lawyers at HWL Ebsworth.

According to the law firm:

“The effect of a cleanup notice is to ‘clean’ the market with information that might not otherwise have been disclosed, or to confirm that none of such information exists, for creating a level playing field and allow recipients to trade in issued securities. This means that, in certain circumstances, an early disclosure of information that otherwise should not be released to the market must be made.

Lake Resources Stock Price Overview

Lake Resources stock price struggled in 2022, down 17%. However, shares of lithium miner ASX have remained up 138% over the past 12 months. This compares to a full-year gain of 4% posed by the Index of all ordinaries (ASX: XAO).