Hydrogenics Corporation has entered into a subscription agreement with the Hydrogen Company, a wholly-owned subsidiary of Air Liquide S.A, to issue 3,537,931 common shares of Hydrogenics to Air Liquide on a private placement basis, for gross proceeds to Hydrogenics of $20.5m.
The hydrogen (H2) generation technology specialist intends to use the proceeds of the private placement primarily for the purpose of funding current operations, technology developments and future scale-up of partners. Following completion, Air Liquide’s interest in Hydrogenics is expected to be approximately 18.6%.
The subscription agreement means Air Liquide will have pre-emptive rights and the right to nominate one director to the board of directors of Hydrogenics. Air Liquide will be subject to certain restrictions, including lock-up, transfer, standstill and voting restrictions, subject, in each case, either to certain ownership threshold requirements or for a period of one year from the date of the subscription agreement.
Concurrent with the subscription agreement, Hydrogenics also has entered into a technology and business development agreement with Air Liquide to jointly develop PEM electrolysis technologies for growing H2 energy markets around the globe.
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