Haydale Graphene (HAYD) Shares Just Crashed 18.8% to Key Support. Should You Buy?

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Simon Mugo
Updated: 20 Sep 2021

Shares of Haydale Graphene Industries PLC (LON: HAYD) crashed 18.8% after announcing a discounted share placement to raise £4.5 million via an accelerated bookbuild.


Investors were not happy to see that the shares sold during the placement were priced at 6p each representing a 20% discount to the stock’s Friday closing price of 7.5p.

Today’s crash is a direct effect of the accelerated bookbuild and investors will be watching to see if the company’s shares price will recover in the coming days and weeks.

Haydale’s last significant announcement was regarding the signing of an MoU on 6 September 2021. The MoU will allow Haydale to share its expertise in engineering solutions for hydrogen storage.

The company will also share its significant experience in nanomaterials science to help Viritech test and develop Type IV structural composite pressure vessels for storing hydrogen.

While the financial details of the agreement are not publicly available, the partnership would become quite lucrative for Haydale if it progresses past the six-month initial target.

Haydale Graphene also recently signed an agreement with Airbus resulting in the filing of a joint patent application to protect the intellectual property created by the two firms.

The two companies intend to produce materials that will improve the lightning strike performance of aeroplanes, which are generally struck by lightning every 1,000 flight hours.

Given that Haydale is taking the lead on the project, the company will be able to sell the materials developed as part of its masterbatches, making it available to other manufacturers to generate additional revenues aside from the partnership.

Haydale Graphene’s future looks promising, but its shares are down 19% over the past three months but are still up 40% since January.

Aggressive traders may find Haydale’s current share price quite attractive given that the 6p level has acted as support since February and could trigger significant gains if its holds over the coming days.

*This is not investment advice.

Haydale Graphene shares price.

IG chart of Haydale Graphene share price 20-09-2021

Haydale Graphene shares crashed 18.8% to trade at 6.09p, falling from Friday’s closing price of 7.50p.

Should you invest in Haydale Graphene shares?

Haydale Graphene shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are HAYD shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

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