Insights

Here’s why the Renu Energy (ASX:RNE) share price is rocketing 46% today

Hydrogen may be one of the dominant energy sources of the future.
The post Here’s why the Renu Energy (ASX:RNE) share price is rocketing 46% today appeared first on The Motley Fool Australia. –

The Renu Energy Ltd (ASX: RNE) share price is rocketing in late morning trade. Shares are up 46.34% at time of writing after earlier posting incredible gains of more than 76%.

Below we take a look at the acquisition announcement that looks to be driving investor interest in the microcap ASX renewable energy share.

What acquisition was announced?

The Renu Energy share price is soaring after the company reported it has entered into a Share Purchase Agreement to acquire 100% of Countrywide Renewable Hydrogen Limited (CRH).

Australian based CRH initiates green hydrogen projects, developing those together with project partners and governments. Outside of Australia the CRH has “a pipeline of opportunities” in Canada and the United States.

Renu will fund the acquisition via the issue of 134,659,520 shares, valued at 6.88 cents each, well below the current 14 cent Renu share price.

The company said the all share deal will enable it to preserve its cash, and that CRH will be debt free once the agreement is finalised, with additional cash available to pursue clean energy opportunities.

Commenting on the acquisition, Renu Energy’s chairman Boyd White said:

This agreement with Countrywide Renewable Hydrogen is the third investment in Renu Energy’s renewable and clean energy incubator/accelerator strategy. The transaction will provide the company with access to a compelling market opportunity in green hydrogen.

CRH has a strong leadership team and we will be excited to welcome both Geoff [Drucker] and Susan [Oliver] to the Renu Energy Board of Directors. Renu Energy will also gain considerable expertise of other key CRH personnel…

Renu Energy’s CEO Greg Watson added, “We are particularly attracted to the company’s origination expertise, existing portfolio of opportunities, as well as CRH’s overseas pipeline of opportunities.”

The acquisition remains subject to the customary approvals.

Renu Energy share price snapshot

The Renu Energy share price is up a whopping 300% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) gained 19% in that same period.

Over the past month Renu Energy shares are up 140%.

The post Here’s why the Renu Energy (ASX:RNE) share price is rocketing 46% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Renu Energy right now?

Before you consider Renu Energy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Renu Energy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Codan (ASX:CDA) share price edges higher on CEO replacement

PointsBet (ASX:PBH) share price tipped to surge 44% higher

Why is the Regional Express (ASX:REX) share price underperforming Qantas lately?

Why did the DigitalX (ASX:DCC) share price fall 10% this morning?

These 3 ASX shares have just been named as broker buys

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!