After losing 98% of its value since first trading on the Toronto Stock Exchange in 2021 and then laying off a majority of staff in 2023, Burnaby’s Loop Energy now intends to amalgamate with another B.C.-based company operating in the hydrogen space.
Loop is amalgamating with H2 Portable Power Corp, the companies announced this week.
Based in Chilliwack, H2P is a developer of hydrogen-enabled industrial equipment designed for customers advancing de-carbonization strategies.
“Clean power should be available wherever and whenever it’s needed,” the upstart states online. “H2 Portable is creating a new future by inventing and accelerating the adoption of modern hydrogen technologies.”
“We are partnering with industry leaders and government to deliver on the promise of the zero-emissions hydrogen economy,” says Scott Mason, CEO of H2 Portable Power Corp.
“This transaction provides what the hydrogen sector in Canada and around the world is missing,” he continued. “The integration of fuel cells into transformative equipment the market can begin adopting now, not in another five or ten years.”
The transaction will “constitute a ‘backdoor listing’ of H2P under Toronto Stock Exchange policies,” according to H2P.
Following the move, “significant cost and operational savings will be implemented immediately,” a statement reads, including downsizing Loop’s leased real estate portfolio and selling non-core equipment.
Concurrent with the transaction, H2P plans to raise approximately $15.0 million in equity in a brokered private placement to “provide growth capital and stability” to the newly combined entity.
In the meantime, H2P has agreed to provide Loop with $2 million in funding through the purchase of assets from Loop as well as a bridge loan.
Loop and H2P share a brief history, following a collaboration initiated in 2023. With the transaction expected to close in April, the newly combined entity intends to launch “multiple high profile pilot projects in and around the Lower Mainland of British Columbia beginning mid-2024.”
“Hydrogen is the way, and customers are asking for solutions to replace their diesel-powered equipment,” said Mason.
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