The Hazer Group Ltd (ASX: HZR) share price has slipped in early trade.
Shares in the hydrogen and graphite company have tumbled recently following a capital raise.
Let’s take a closer look at the Hazer share price.
What’s been dragging the Hazer share price?
Shares in Hazer have been weighed down by the company’s $7 million capital raising.
Earlier today, the company released documentation inviting eligible shareholders to participate in the Share Purchase Plan (SPP).
Eligible retail shareholders will be able to subscribe for up to A$30,000 worth of fully paid ordinary shares.
These new shares in Hazer will be available at a subscription price of A$0.92 per share.
The SPP will open on 17 September and close on 15 October and be capped at a maximum of $7 million.
Hazer announced early this week that it had completed its placement with institutional and sophisticated investors, with 7.6 million new ordinary shares to be issued.
According to the company, funds raised from both capital raises will be used to expand business development activities for the Hazer Commercial Demonstration Project (CDP).
Furthermore, Hazer also plans on funding continued research and development programs to enhance its graphite advanced carbon material.
More on Hazer
Hazer is a technology development company that is focused on commercialising a low-emission hydrogen and graphite production process.
The Hazer Process enables the effective conversion of natural gas and similar methane feedstocks, into hydrogen and high quality graphite, using iron ore as a process catalyst.
The company recently provided an update on its CDP being constructed at Water Corporation’s Woodman Point Water Recovery Facility.
Hazer advised shareholders that COVID-19 restrictions have caused some delays with the fabrication.
As a result, the project is now estimated to be in commission in the first quarter of FY22. Hazer had previously targeted December 2021 as the commission date.
Snapshot of the Hazer share price
Despite slipping in the past week, shares in Hazer have performed strongly for the year.
Since the start of 2021, the Hazer share price is trading more than 17% higher.
At the time of writing, shares in the mineral technology company are trading more than 2% lower for the day at around 94 cents.