In a strategic move to bolster its position in the green hydrogen sector, Fusion Fuel Green PLC, an emerging leader, announced yesterday that it has inked a financing agreement with Macquarie Group’s Commodities and Global Markets business. The deal, valued at up to $20 million, encompasses senior convertible notes and is subject to the conditions laid out in a securities subscription agreement.
The financing will be conducted in multiple tranches, with each tranche size, including the initial one, to be determined through mutual agreement between Macquarie and Fusion Fuel. While subject to market fluctuations, the initial tranche is anticipated to be capped at 10% of the total financing. However, until the specified conditions are met or waived, there is no guarantee that any part of the financing will be finalized.
Following this announcement, Fusion Fuel Green PLC witnessed a noteworthy surge in its stock, trading higher on Tuesday.
At the time of this publication, Fusion Fuel Green PLC stock (HTOO) has witnessed a surge.
Fusion Fuel Green PLC
Current Price: $1.27
Change : +0.37
Change (%): (41.89%)
Volume: 1.4M
Source: Tomorrow Events Market Data
The purpose of this financing is to support Fusion Fuel Green in achieving its near-term objectives, including delivering Hydrogen Evolution (HEVO) solutions to contracted clients, meeting its 2023 revenue guidance, and advancing its project portfolio for sale to infrastructure investors. Additionally, the funds will be allocated to cover general working capital needs.
The financing will unfold through several tranches, with Macquarie purchasing convertible notes from Fusion Fuel Green. Fusion Fuel Green will issue these notes and simultaneously sell warrants to Macquarie. The issue price of the convertible notes is set at 98% of the principal amount, with the warrants granting the right to purchase a certain number of the company’s ordinary shares.
Fusion Fuel and Macquarie will collaboratively determine the timing and size of each tranche, contingent upon meeting closing conditions. Notably, there are no minimum funding obligations. Despite this transaction, Fusion Fuel Green PLC is actively exploring additional financing options that may complement this deal.
Frederico Figueira de Chaves, the CEO of Fusion Fuel, expressed enthusiasm about the agreement, stating, “We are excited to enter into this agreement with Macquarie. The Financing, when consummated, will provide the Company with near-term financing and will allow the team to focus on delivering its near-term objectives and create value for our shareholders.”
Details of the Financing
According to the Purchase Agreement terms, Fusion Fuel Green will issue convertible notes with a two-year term, bearing 4% annual interest over the Secured Overnight Financing Rate. Additionally, two-year immediately exercisable warrants will be issued to Macquarie, allowing the purchase of ordinary shares of the company.
For each tranche of convertible notes, corresponding warrants will be issued with an exercise price equal to 130% of the Volume Weighted Average Price for the five trading days preceding the tranche issuance. The holder retains the option to convert the convertible notes into ordinary shares based on a conversion price calculated as the higher of 90% of the Volume Weighted Average Price on a selected trading day or $0.20 per ordinary share, subject to adjustment.
