ASX-listed hydrogen solutions firm Hazer Group has announced a non-renounceable pro-rata offer to eligible shareholders to raise up to approximately $15.3 million before costs through an entitlement offer.
The entitlement offer is for three new ordinary shares for every 16 existing shares held on 7pm on August 3, 2023, at an issue price of AUD$0.48 per new share. In addition, eligible shareholders will be issued an attaching new option (on a one for two new shares basis) at a strike price at AUD$0.75 with an 18-month duration.
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Funds raised are to be principally used towards supporting the ongoing operational performance from the company’s Commercial Demonstration Plant (CDP) post start up in 2023; R&D to advance and prepare the technology for commercial-scale deployment following CDP commissioning; advancing current commercial projects in North America, Japan and France and unlock further commercial pipeline opportunities in Asia and North America; and general working capital.
Hazer said its CDP remains on schedule to commence operations during this calendar year. Material progress has been made with the procurement of the replacement heat-exchanger and reactor, which have both arrived in Australia and are now undergoing final preparation and assembly prior to delivery to the CDP for installation and commissioning for start-up operations.
Hazer managing director and CEO Glenn Corrie said, “We continue to prudently manage and maintain a healthy balance sheet and secure additional funding during the Company’s pre-revenue phase. This funding together with our cash and other sources of funds, strengthens our liquidity enabling us to deliver our CDP as planned and concurrently execute our growth strategy, while enabling our existing shareholders to participate in this upside.
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“As we articulated during our strategy update, bringing our CDP online this year and accelerating the commercial scale-up projects with tier-1 partners seeking a near-term decarbonisation solution are key priorities. These will provide further validation of our disruptive technology which I’m confident will unlock further value creation opportunities for Hazer shareholders.”