Why is the Hazer (ASX:HZR) share price frozen?

The company has requested a trading halt pending an announcement about a capital raising.
The post Why is the Hazer (ASX:HZR) share price frozen? appeared first on The Motley Fool Australia. –

The Hazer Group Ltd (ASX: HZR) share price isn’t going anywhere on Thursday. This comes after the hydrogen producer requested a trading halt before the market opened.

As such, Hazer shares remain frozen at $1.075 apiece. It’s worth noting that the Hazer share price has gained more than 32% over the past month.

Why is Hazer in a trading halt?

Hazer was placed in a trading halt this morning pending an announcement regarding a proposed capital raising.

While no details have been given, the company might be seeking to shore up its balance sheet for the Hazer Commercial Demonstration Project (CDP).

The plant is being constructed at Water Corporation’s Woodman Point Water Recovery Facility in Western Australia.

Recently, there have been delays with the fabrication and supply of high temperature materials due to COVID-19 related restrictions. The restrictions have impacted Chinese mill operations and pushed back shipping deliveries to Australia.

Hazer estimates the commissioning of the CDP to be achieved within the first quarter of 2022, as opposed to the original target date of December 2021.

The company advised it will aim to minimise any extra costs incurred through the delay or increased shipping and freight expenses.

Hazer CEO, Geoff Ward commented, “We will continue to monitor these issues and do all we can to mitigate the impacts on the project.”.

The current guidance for the cost of building the CDP is between $21 million and $22 million.

The Hazer share price will remain frozen in the trading halt until 13 September or when the company releases its announcement.

Hazer share price snapshot

It has been an interesting year for Hazer shares, shooting higher at the beginning of 2021 before moving in circles. Nonetheless, the Hazer share price is up 175% over the past 12 months. In comparison, the All Ordinaries Index (ASX: XAO) has advanced 28% in the same period.

Hazer has a market capitalisation of roughly $156.2 million, with about 145 million shares on its books.

The post Why is the Hazer (ASX:HZR) share price frozen? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Hazer right now?

Before you consider Hazer, 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 Hazer 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

Hazer Group (ASX:HZR) share price sinks 6% as after-tax loss widens in FY21
Why the Hazer (ASX:HZR) share price is up 12% this week

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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!