Cleantech business Hazer Group and marine technology manufacturer VEEM have raised a combined $13 million from share placements to fund research and development initiatives.
Cleantech business Hazer Group and marine technology manufacturer VEEM have raised a combined $13 million from share placements to fund research and development initiatives.
Today, Hazer announced it had secured $7 million from a placement and would seek a further $7 million from a share purchase plan to fund working capital and R&D programs.
It told the market it would use the proceeds to “take advantage of the high global interest in technologies” including its Hazer Process – a method to produce hydrogen from a renewable form of methane.
Hazer is building a $22.6 million commercial demonstration plant at Woodman Point, which will have a hydrogen capacity of 100 tonnes per annum.
About $9.4 million of the project cost is funded by the Australian Renewable Energy Agency.
The CDP is expected to be built before March 30 next year.
“There is enormous demand for emerging technologies such as the Hazer Process and we are committed to ensuring we position Hazer to capture this,” chairman Tim Goldsmith said.
“Our business development activities and R&D program are both targeted to meet this growing global demand.”
Hazer will issue about 7.6 million shares through the placement at 92 cents each, representing a 14.4 per cent discount to its last traded price of $1.075.
The placement, which is being led by Miami-headquartered Viriathus Capital, is expected to occur on September 17. The SPP is priced on the same terms.
Hazer was trading 8.8 per cent lower at 3:11pm AEST to 98 cents a share.
Meanwhile, VEEM has secured $6 million to fund R&D as well as sales and marketing initiatives for its gyrostabilisers – a product that aims to stop boats from rocking during rough sea conditions.
The Miocevich family, which founded VEEM in 1968, will sell 11.9 million shares "in response to investor demand".
It is the first time the Miocevich family has sold shares since VEEM listed on the ASX in 2016. Once completed, they will hold 50.4 per cent of the company's issued capital.
Chairman Brad Miocevich said the sell-down would improve liquidity and the free float of shares, while the capital raising would allow VEEM to further invest in its gyrostabiliser business.
"The market is significant and over the past few years we have truly started to become recognised as the global leader," he said.
"We now have the opportunity to ensure we deliver on this mission as well as the broader base of the business."
VEEM will issue about 5.1 million shares at a price of $1.18 each, representing a 15 per cent discount to the company's last traded price of $1.39.
Settlement is expected to occur on September 15.
Canning Vale-based VEEM is seeking to raise a further $2 million from a share purchase plan, priced on the same terms.
Morgans Financial is acting as lead manager to the placement and sell-down, with PAC Partners and Sydney-based CCZ Equities as co-managers. Steinepreis Paganin is acting as legal adviser to VEEM.
Its shares were down 8.6 per cent at 3pm AEST to trade at $1.27.
