- Hazer Group (HZR) receives binding commitments to raise $7 million through a share placement to institutional and sophisticated investors
- HZR will issue 7.6 million shares at 92 cents each, with proceeds set to expand its business development activities to harness global interest in its technologies
- The company will also undertake a purchase plan (SPP) to raise $7 million, with up to 7.6 million shares to be issued at the same price as the placement
- The placement is expected to settle on September 17, with the SPP planned to open on the same date
- Shares are down 9.77 per cent at 97 cents each at 3:05 pm AEST
Hazer Group (HZR) has received binding commitments to raise $7 million through a share placement.
Based in Western Australia, the tech developer is set to issue more than 7.6 million new fully paid ordinary shares to institutional and sophisticated investors at 92 cents each.
HZR said net proceeds from the placement would be used to expand its business development activities to take advantage of global interest in its technologies, including the “Hazer Process”.
The Hazer Process is used to enable the conversion of natural gas and similar feedstocks into hydrogen and high-quality graphite, using iron ore as a catalyst.
The funds will also go towards enhancing HZR’s ongoing research and development programs, particularly with respect to applications for its graphite advanced carbon material, and will be used as working capital.
Accordingly, the company said it expected to settle the placement on September 17, with issue and trading of shares anticipated from the following Monday.
Hazer Chairman Tim Goldsmith said HZR was delighted to secure the support of new investors and backing from existing shareholders.
“We have an exciting program of activities ahead for the company in 2021 and 2022 with the completion of the Hazer Commercial Demonstration Project in the first quarter of 2022,” he said.
“There is enormous demand for emerging technologies such as the Hazer Process and we are committed to ensuring we position Hazer to capture this.”
HZR eyes further $7m through share purchase plan
Meanwhile, Hazer has announced a share purchase plan (SPP) intended to raise a further $7 million.
The optional SPP will allow eligible shareholders in Australia and New Zealand to purchase up to $30,000 worth of shares at the same price as the placement, free of brokerage and commission.
Shares issued will be capped at roughly 7.6 million, with the plan set to close once the maximum amount is reached.
Notably, the issue price of 92 cents represents a 14.4 per cent discount to the last trade price of $1.07, and a discount of 16.5 per cent to the average market price of HZR shares during the five trading days prior to the SPP announcement.
Hazer said it planned to issue an SPP booklet to eligible shareholders and open the plan on September 17.
On Monday, shares in Hazer Group were trading down 9.77 per cent at 97 cents each at 3:05 pm AEST.