Loop Energy said it has entered into an amalgamation agreement with H2 Portable Power Corp, dated February 9. H2P will amalgamate with a Loop subsidiary. Loop will acquire all of the issued and outstanding common shares of H2P, and H2P shareholders will receive common shares of Loop. This transaction will constitute a backdoor listing of H2P.
H2P Portable Power Corp Inc. a BC-based industrial equipment developer of hydrogen-enabled industrial equipment, is developing modular and expandable advanced power systems integrating the technology of the Loop fuel cell. Focused on high demand applications, H2P is working with companies in port operations, rail, film, and construction to transform and convert legacy diesel equipment assets and power generators to clean, zero emissions hydrogen technology. Supported by a strategic relationship with product developer and scale manufacturer TYCROP Manufacturing Ltd. (Chilliwack, BC), H2P is launching multiple pilot projects in and around the Lower Mainland of BC beginning mid-2024.
Concurrently, H2P plans to raise $15 million in equity in a brokered private placement of subscription receipts. H2P will also provide Loop $2 million in funding in February through the purchase of $0.5 million of certain fixed assets and inventory of Loop and a further $1.5 million in the form of either a bridge loan or further asset purchase. This funding will boost Loop’s balance sheet and ability to maintain operations through to the anticipated closing of the transaction.
Following the transaction’s close, Loop shareholders will own 9-9.6% of the combined entity shares and H2P shareholders will own 60.5-62.0%, on a fully diluted basis. Investors in the concurrent financing are expected to own 28.4-30.5% of the combined entity shares on a fully diluted basis.
The transaction is expected to close in April.
Press release https://shorturl.at/ouDJ8
