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Hazer Group raises nearly $2.5 million through exercise of options

The company is focused on producing synthetic graphite and hydrogen using its low-cost, low-emission Hazer Process.
Hazer Group raises nearly $2.5 million through exercise of options
The Hazer Process converts natural gas and iron ore into hydrogen and high-quality graphite

Hazer Group Ltd (ASX:HZR) has raised $2.45 million from the exercise of its listed options and unlisted series C options which expired on December 31, 2018.

The company is commercialising its low-emission hydrogen and graphite production process which enables the effective conversion of natural gas into hydrogen and high-quality graphite.

 

Hazer chief executive officer Geoff Ward said this was a very positive start to the year and the company appreciated the continued support of its shareholders.

“Including the proceeds from the exercise of options, the company had $6.6 million of cash as at December 31, 2018.

“[This puts] us in a strong position as we look to take our Hazer Process technology forward through establishing a commercial demonstration plant in 2019.

“In addition, we have lodged our research and development tax incentive assessment for FY18 and anticipate receiving a cash rebate of C$1.5 million during the first quarter of 2019.”

READ: Hazer Group focused on commercial demonstration plant in 2019

The company received final acceptances to exercise 3,448,850 listed options with an exercise price of 30 cents a share, raising $1.034 million.

A further $236,500 was raised from the exercise of 788,333 listed options in the weeks prior to the final exercise process.

The exercise of 4,721,489 unlisted Series C options in a number of transactions since September netted Hazer more than $1.18 million.

The unlisted options had an exercise price of 25 cents each and were held by current and former directors and management.

READ: Hazer Group test results support commercial viability of its graphite

Hazer’s focus for 2019 will be developing its front-end engineering studies for an initial commercial demonstration plant.

The company will also complete concept studies for a range of initial commercial-scale plants.

Hazer is looking at a commercial demonstration project capable of operating on a continual, 24/7 basis producing 100 tonnes per annum of hydrogen and 375 of graphite.

The target capital cost is around $10 million.

Securing an ongoing commercial demonstration project that allows Hazer to demonstrate hydrogen sales and build sales interest for graphite would be a material achievement for the company.

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