It is an interesting discussion to have on HZRO, the sum of many thoughts and all that !
Are HZR management motivated to ensure they are converted, thus securing funding for the demonstration plant. They certainly were during the roadshows prior to the arrival of Geoff Ward,
its now becoming unclear if that motivation persists.
On the one hand promotion of Hazer continues, on the likes of proactive investors podcasts and market updates. On the other the tone has shifted. Things like achieving 60% h2 yield on a single pass are quietly slipped in. IMO this justified a price sensitive announcement on it own as it equals or betters the initial conversion of Steam Methane Reforming, the main competitor technology holding 95% of the current market.
What is obvious, is the need to fund the demonstration plant, over and above their normal operations costs. HZRO were the pathway to funding that was already in play. So the question becomes why would they depart from the plan.
Possibilities ?
They believe alternate funding can be found, at a better price than 30 cents after deducting fund raising costs.
No funding is required, as a deal is in play.
(Foul play ?, I dismiss this as it would have shown as an underwriting deal on the options IMO)
The possibilities all point to Hazer moving into a better position than current, which would make entry at this level attractive via either pathway, options conversion or head shares.
Will an entry level at 32c today be available, in February after delivery of the news in the published aspirational timeline.
I am inclined to agree with others that HZRO have acted as a handbrake, by providing a large supply. At HZRO market price plus 30 cents conversion yesterday 335000 could have been purchased under 32c, whilst only 21565 heads were traded under 32c. This volume distortion is significant in a currently low liquidity stock.
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