Hydrogenics Announces US$20.5 million Private Placement and Technology Partnership with Air Liquide

By December 21, 2018 4   min read  (676 words)

December 21, 2018 |

Air Liquide 2B Hydrogenics 3

MISSISSAUGA, Ontario — Hydrogenics Corporation (NASDAQ: HYGS; TSX: HYG) (the “Company” or “Hydrogenics”), a leading developer and manufacturer of hydrogen generation and hydrogen-based fuel cell modules, today announced that it has entered into a subscription agreement with The Hydrogen Company, a wholly-owned subsidiary of Air Liquide S.A. (“Air Liquide”), to issue 3,537,931 common shares of Hydrogenics to Air Liquide on a private placement basis, for gross proceeds to Hydrogenics of US$20,520,000 (the “Private Placement”) or approximately US$5.80 per common share. Hydrogenics 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 of the Private Placement, Air Liquide’s interest in Hydrogenics is expected to be approximately 18.6%.

The subscription agreement provides, among other things, that Air Liquide will have pre-emptive rights and the right to nominate one director to the board of directors of Hydrogenics, and that 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 hydrogen energy markets around the globe.

The Private Placement is subject to certain closing conditions, including the receipt of all applicable stock exchange approvals. 

The material change report and subscription agreement will be filed by Hydrogenics on SEDAR and EDGAR.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

The securities will not be and have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered or sold into the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the U.S. Securities Act), absent registration or an exemption from registration requirements. The securities have not been and will not be qualified for sale by way of a prospectus under Canadian securities laws.

About Hydrogenics
Hydrogenics Corporation ( is a world leader in engineering and building the technologies required to enable the acceleration of a global power shift. Headquartered in Mississauga, Ontario, Hydrogenics provides hydrogen generation, energy storage and hydrogen power modules to its customers and partners around the world. Hydrogenics has manufacturing sites in Germany, Belgium and Canada and service centers in Russia, Europe, the US and Canada.

About Air Liquide
A world leader in gases, technologies and services for Industry and Health, Air Liquide is present in 80 countries with approximately 65,000 employees and serves more than 3.5 million customers and patients. Oxygen, nitrogen and hydrogen are essential small molecules for life, matter and energy. They embody Air Liquide’s scientific territory and have been at the core of the company’s activities since its creation in 1902.

Air Liquide’s ambition is to be a leader in its industry, deliver long term performance and contribute to sustainability. The company’s customer-centric transformation strategy aims at profitable growth over the long term. It relies on operational excellence, selective investments, open innovation and a network organization implemented by the Group worldwide. Through the commitment and inventiveness of its people, Air Liquide leverages energy and environment transition, changes in healthcare and digitization, and delivers greater value to all its stakeholders.

Air Liquide’s revenue amounted to 20.3 billion euros in 2017 and its solutions that protect life and the environment represented more than 40% of sales. Air Liquide is listed on the Euronext Paris stock exchange (compartment A) and belongs to the CAC 40, EURO STOXX 50 and FTSE4Good indexes.

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