- Hannans (HNR) has struck a potential deal with Ireland-based firm Greenhouse Investments to expand its lithium battery recycling operations to the UK, Ireland, Italy, and the Balkans
- This means Hannans’ sub-licences and rights cover almost half of the entire population of the EU, including the UK, and roughly 38 per cent of all motor vehicles registered in the EU
- The companys says it will now focus on forming relationships with European lithium battery supply chain participants as it works to increase business development activities
- As part of today’s expansion plans, Hannans will launch a $3.5 million capital raise at 3.5 cents per share to fund its new activities and to re-comply with some key ASX listing rules
- Shares in Hannans are retreating towards the planned cap raise price, down 15.79 per cent to trade at 4.8 cents per share this morning
Lithium battery recycling specialist Hannans (HNR) has struck a potential deal with Ireland-based firm Greenhouse Investments to expand operations to the UK, Ireland, Italy, and the Balkans.
Hannans said it planned to tap investors for $3.5 million through a capital raise to fund work in these new territories and to re-comply with ASX listing rules.
Today’s heads of agreement (HoA) follows a deal struck between Hannans and Critical Metals back in September 2021 when Hannans first announced it would be commercialising its lithium-ion battery recycling tech in Norway, Sweden, Denmark, and Finland.
With the new jurisdictions to be added under today’s potential Greenhouse deal, Hannans said its sub-licences and rights would cover territories comprising almost half of the entire population of the European Union (EU), including the UK, and roughly 38 per cent of all motor vehicles registered in the EU.
Hannans Executive Director Damian Hicks said the company was “extremely pleased” with the planned increase in the size and scope of its recycling opportunity.
“It is abundantly clear that Europe needs a scalable, safe, and sustainable, lithium battery recycling solution,’ Mr Hicks said.
“We believe the technology we will hold sub-licences to will help stakeholders in our licenced jurisdictions meet their circular economy ambitions and legal obligations to recycle.”
He said the company’s focus would now be to form long-term relationships with European lithium battery supply chain participants as it worked to increase business development activities.
As part of today’s deal, Hannans will issue just under 540 million shares to Greenhouse Investments, subject to shareholder approval. Hannans said it would seek this approval at a general meeting in late March or early April.
Upcoming capital raise
Hannans requested a suspension of its shares from trade on January 21 pending the release of today’s Greenhouse Investments announcement and re-compliance some key ASX listing rules.
As part of this re-compliance, Hannans is changing the nature of its primary activity from minerals exploration to lithium battery recycling and raising money to help fund its expansion plans.
As such, the company has proposed to raise a maximum of $3.5 million through a general share offer to the public at 3.5 cents per share. Existing Hannans shareholders will be given a priority right to subscribe for new shares under the offer.
Hannans said it was aiming to raise $2.5 million from the offer but would accept oversubscriptions of up to $1 million, hence the $3.5 million cap.
If the company receives subscriptions for more than $3.5 million, non-shareholders will not receive any shares, and shareholders may have their subscriptions scaled back.
Shares in Hannans broke out of their suspension this morning but have since retreated towards the capital raise price. The company was down 13.2 per cent at 12:22 am AEDT to trade at 4.8 cents per share.