Hazer taps shareholders for $15m

Chemical engineering company Hazer Group has launched a $15 million entitlement offer to accelerate operations at its Woodman Point demonstration plant towards production.  

The Perth-based technology developer announced the non-renounceable pro-rata offer to eligible shareholders to raise about $15.3 million on the market this morning.

Proceeds from the offer are expected to support ongoing operational performance and testing from the Hazer Commercial Demonstration project (CDP) once it goes online.

The Woodman Point-located project demonstrates the company’s production technology, dubbed the HAZER Process, to convert methane feedstocks into hydrogen and synthetic graphite.

The plant is expected to reach first production of hydrogen and graphite in the second half of 2023.

The offer is also expected to fund research and development to advance and prepare the technology for commercial-scale deployments following CDP commissioning, according to Hazer.

Hazer said it would also use the funds to advance current commercial projects in North America, Japan and France and unlock further commercial pipeline opportunities.

The offer is for three new ordinary shares for every 16 existing shares at an issue price of 48 cents per share, representing an 11 per cent discount on its last closing price.

Eligible shareholders would also be issued an attaching new option at a strike price of 75 cents with an 18-month duration.

The offer is partially underwritten by Viriathus Capital with a $6 million investment, and other investors will be able to apply for any shortfall under the offer.

“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,” Hazer managing director Glenn Corrie said.

“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.”

On the share market, Hazer Group shares were trading up 7.41 per cent to 58 cents at 1:35PM AWST.