Hazer completes $9 million raise

Chemical engineering company Hazer Group announced on Monday that it has received binding commitments amounting to $9 million, before costs, under a placement. 

The firm commitments for ordinary, fully-paid share came from “institutional, sophisticated and professional investors” and at an issue price of $0.50 per share, “together with a free attaching quoted HRZO class option exercisable at $0.75  each” on a 1-for-4 basis and expiring February 28 next year. 

Hazer is also conducting a share purchase plan, seeking to raise up to $4 million, before costs, offering eligible shareholders an opportunity to purchase new shares on the same terms as the placement with no brokerage, transaction, or commission costs. 

“With this additional funding now secured, together with current cash and other, non-dilutionary sources of funding (ARENA funding milestones and R&D rebates), Hazer is well positioned to accelerate current commercial projects and secure further global licensing deals,” said CEO Glenn Corrie.

Capital from the placement and SPP would be used to expedite existing commercial projects in Canada, Japan and Europe, as well as secure new global project and license deals, and cover other, unspecified corporate and strategic purposes, it said. 

Hazer is commercialising a process that turns natural gas “and similar feedstocks” into hydrogen and graphite using an iron ore catalyst. This is being used at the Western Australian Water Board’s Woodman Point wastewater treatment plant in a commercial demonstration project, backed by $9.41 million in Australian Renewable Energy Agency funding.

Hazer announced on January 31 that the Woodman CDP produced its first hydrogen and graphite and expects to ramp up production this half.

“Achieving the first production of Hydrogen and Graphite from the CDP in January represented a watershed moment for Hazer and an inflection point in collaboration with our development partners ENGIE, Chubu &  Chiyoda and FortisBC,” added Corrie. 

“We are working closely with the engineering and commercial teams at each project and feedback thus far has been encouraging and we are confident in our ability to convert these partnerships  into commercial agreements.”

Picture: credit Hazer Group

Further reading

Hazer readies start for demonstration hydrogen plant

Hazer Group hydrogen plant to be constructed in Japan

ARENA accelerates Hazer Group funding

Hazer hydrogen-from-sewage site to go ahead: WA government