KMD Brands (ASX:KMD) said it plans to launch a capital raise through a placement and an accelerated renounceable entitlement offer, according to a Wednesday filing with the Australian bourse.

The capital raise is expected to be launched in conjunction with the release of the company's financial results for the fiscal first-half ended Jan. 31, the filing said.

The company requested a trading halt from NZ RegCo and ASX pending finalization of the capital raise terms, per the filing.

Shares fell 3% in morning trade on Wednesday.