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.
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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.
