GreenHy2 Raises Nearly $1 Million via 15% Share Placement at 21% Discount

Capital Raise Details

GreenHy2 Limited (ASX, H2G), a pioneer in renewable energy storage technologies, announced a successful capital raising effort through a placement of new shares to institutional and sophisticated investors. The company secured firm commitments to raise approximately $987,003 by issuing 89,727,627 new fully paid ordinary shares at an issue price of $0.011 per share. This price reflects a 21% discount to the 90-day volume weighted average price, a common practice to incentivize investor participation in such placements.

The new shares represent about 15% of GreenHy2’s current issued capital, signaling a significant dilution but also a strong vote of confidence from existing and strategic shareholders who are backing the company’s long-term vision.

Strategic Use of Proceeds

The funds raised will be directed towards accelerating the development and market introduction of GreenHy2’s energy storage products. Notably, the company is focusing on its hybridised graphene batteries, which promise enhanced performance and sustainability, alongside its existing hydrogen energy storage solutions. These technologies are at the forefront of renewable energy innovation, aiming to address the critical challenge of efficient and scalable energy storage.

GreenHy2’s expertise spans a range of advanced technologies including low-pressure and solid-state hydrogen storage, supercapacitor batteries, electrolysers, and fuel cells, positioning it well within the evolving clean energy landscape.

Additional Share Rights and Shareholder Approval

Alongside the placement, GreenHy2 has granted participants rights to acquire an additional 89,727,627 shares at the same issue price, subject to shareholder approval. This mechanism could potentially double the capital raised if exercised, but it introduces an element of uncertainty until the approval process concludes. The rights must be exercised by 22 August 2025, with the company planning to seek shareholder endorsement for the further issuance.

This staged approach to capital raising reflects a cautious but optimistic strategy to balance immediate funding needs with shareholder interests and market conditions.

Market and Investor Implications

The placement’s discount and the sizeable share issuance will likely impact the share price in the short term, but the infusion of capital is critical for GreenHy2 to maintain momentum in a competitive sector. Investors will be watching closely for updates on product development milestones and commercialization timelines, which remain key to validating the company’s growth prospects.

GreenHy2’s leadership, including Executive Chairman Dr Paul Dalgleish and CFO William Howard, emphasize the strategic nature of this raise as a step towards delivering innovative, sustainable energy solutions that align with global decarbonization goals.