Pure Hydrogen to acquire 24% Strategic Stake in Hydrogen Fuel Cell Vehicle Company H2X
- Term sheet signed to acquire a 24% stake in H2X Global Limited (“H2X”), a Hydrogen Fuel Cell vehicle company with share options to increase shareholding to 48%.
- Pure Hydrogen has established a new company ‘Pure X Mobility Pty Limited’ that plans to develop and sell Hydrogen Fuel Cell Trucks and Buses including Waste Disposal trucks and Concrete Agitator trucks.
- H2X focuses on using its own Hydrogen Fuel Cells and Powertrains to install into Utilities Buses, Delivery Vans and Hydrogen Power GeneratorsH2X ’s first vehicle is the Warrego Utility which will be a Hydrogen Fuel Cell .
- Pure Hydrogen and H2X have signed a preferred supplier agreement.
- Vehicles that only produces water as its emission; expected to be available for sale in the first half of 2022.
- PH2 currently working with commercial users to supply back-to-base hydrogen fuelling; off-take agreements and vehicle supply contracts are pending.
Australian East Coast Clean Energy Company, Pure Hydrogen Corporation Limited (ASX: PH2 or ‘Pure Hydrogen’) is pleased to announce that it is significantly expanding its investment in the hydrogen sector by acquiring an initial 24% interest in Hydrogen Fuel Cell vehicle company H2X Global Limited (‘H2X’) and establishing Pure X Mobility Pty Limited as an entity for the development of Hydrogen Fuel Cell-powered Truck and Buses for use in the Australian market.
Pure Hydrogen has signed a term sheet setting out that Pure Hydrogen will receive a 24% interest in H2X shares for 8.6 million shares in PH2, which will have some escrow conditions. In addition, Pure Hydrogen also receives options to increase its interest to 48% in H2X. The agreement is subject to customary condition precedents and is expected to close in a few weeks. H2X and Pure Hydrogen have signed a Preferred Supplier Agreement where Pure Hydrogen will be the preferred supplier of Hydrogen to H2X.
This significant development underpins H2X’s plans to develop a variety of Hydrogen Fuel Cell powered vehicles. Pure Hydrogen’s hydrogen logistics experience will secure the re-fuelling requirements of vehicles being developed by H2X. Additionally, Pure Hydrogen will provide through a new entity being established, Pure X Mobility Pty Limited (‘Pure X’) trucks for deployment for back to base operations such as waste disposal and concrete agitator trucks that the Company plans to bring to market.
H2X is an innovator in hydrogen automotive technology and is behind the team bringing the much-heralded Warrego Hydrogen Utility to the Australian market for sale in the first half of 2022. It also has a range of hydrogen vehicles and power generating units. It focuses on unique Fuel Cell technology and Hydrogen Powertrains for commercial transport operations such as: utilities buses, vans, trucks and prime movers.
Our Corporate Finance Associate, Jack Colreavy, commented:
"The strategic investment from PH2 underpins the opportunity H2X presents to the market as a future leader in hydrogen fuel-cell electric vehicles globally."
"Establishing partnerships with hydrogen producers is a key milestone in establishing the hydrogen ecosystem necessary for hydrogen vehicles to prosper. Moreover, the backing of a A$100m ASX-listed company can also help provide balance sheet support to H2X as it explores new opportunities into the future."
Jack Colreavy, Corporate Finance Associate, Barclay Pearce Capital
Read the full announcement here.
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