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- Hannans (HNR) calls a two-day trading halt as it gears up to tap investors for some fresh capital
- The company is set to reveal the details of the raise — including how much it plans to raise and for what it will use the funds — on Wednesday, October 13
- In September, Hannans struck a Memorandum of Understanding (MoU) with Critical Metals to commercialise a lithium-ion battery recycling tech in Europe
- On of the conditions of the MoU, however, is for Hannans to raise at least $5 million before the end of the year — meaning the upcoming cap raise is not unexpected
- Shares in Hannans last traded for 2.9 cents each on Friday, October 8
Lithium-ion battery recycling specialist Hannans (HNR) has called a two-day trading halt as it gears up to tap investors for some fresh capital.
The company is yet to reveal how much it plans to raise or for what it will use the influx of cash, but these details are set to be announced on Wednesday, October 13, when the trading halt expires.
Hannans enjoyed a neat 26 per cent share price boost on Friday after announcing a step forward in its plans to recycle lithium-ion batteries across the Nordic region in Europe.
In September, Hannans struck a Memorandum of Understanding (MoU) with private company Critical Metals to commercialise a lithium-ion battery recycling technology in Norward, Sweden, Denmark, and Finland.
The two entities agreed to form a joint venture over the technology in which Hannans could gradually earn an interest over time.
Hannans said an unwanted by-product of the global shift to electric vehicles was the amount of flammable toxic scrap that came from used lithium-ion batteries. The company said it believed this would create a large demand for technology that can efficiently recycle these batteries.
Last week, Hannans told investors Critical Metals shareholders had approved the MoU — meaning the first of three necessary conditions to go ahead with the deal had been met.
Under the other two conditions, Hannans needs to gain approval from its own shareholders and complete a capital raising of at least $5 million before the end of the year.
As such, the capital raise announced today likely comes as no surprise to HNR shareholders; as per the deal with Critical Metals deal, it was always a matter of when HNR would raise capital, not if it would do so.
Shares in Hannans last traded for 2.9 cents each on Friday, October 8. The company has a $57 million market cap.