The Hazer Group Ltd (ASX: HZR) share price is falling wayside following an update on its capital raising efforts.
At the time of writing, the hydrogen producer's shares are down a sizeable 11.16% to 95.5 cents.
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What did Hazer announce?
According to its announcement, Hazer advised it has successfully completed its placement, raising gross proceeds of $7 million.
The offer received strong interest from new institutional and sophisticated investors, as well as the ongoing support of existing shareholders.
As a result, the company will issue 7.6 million new ordinary shares at a price of 92 cents apiece. This represents a discount of 14.42% to the last closing Hazer share price of $1.075 last Wednesday.
The settlement of the placement is expected to occur on 17 September, with issue and trading available on 20 September.
In addition, Hazer also invited retail investors to participate in a $7 million Share Purchase Plan (SPP). This will be offered on the same terms as the placement.
The SPP will open on 17 September and close the following month on 15 October.
Monies raised from both capital raises will be used towards expanding business development activities for the Hazer Commercial Demonstration Project (CDP). Furthermore, the company will fund ongoing research and development programs to enhance its graphite advanced carbon material.
Hazer chair Tim Goldsmith commented:
We have an exciting program of activities ahead for the Company in 2021 and 2022 with the completion of the Hazer Commercial Demonstration Project (CDP) in Q1 2022. This remains a key milestone to advance Hazer into the next stage of our development.
There is enormous demand for emerging technologies such as the Hazer Process and we are committed to ensuring we position Hazer to capture this. Our business development activities and R&D Program are both targeted to meet this growing global demand.
About the Hazer share price
Over the last 12 months, Hazer shares have accelerated to post a 151% gain, with year-to-date up 22%. Interest in novel graphite and hydrogen production technology has picked up considerably in recent times, leading to investors buying.
Hazer presides a market capitalisation of about $142 million and has approximately 145 million shares on its books.
