Two B.C. companies working to usher in the zero-emissions hydrogen economy have announced merger plans.
Vancouver-based hydrogen fuel-cell supplier Loop Energy, and industrial equipment developer H2 Portable Power Corp. of Chilliwack, issued a news release Feb. 9 to say they’ve entered into a “three-cornered” amalgamation agreement.
Hydrogen fuel-cell technology is being applied to the challenge of replacing diesel equipment, and H2P is helping carve out a niche with several Lower Mainland pilot projects, including a decarbonization project of the gantry cranes at the Port of Vancouver.
“This transaction provides what the hydrogen sector in Canada and around the world is missing - the integration of fuel cells into transformative equipment the market can begin adopting now, not in another five or 10 years,” said Scott Mason, CEO of H2 Portable Power Corp. (H2P).“We are partnering with industry leaders and government to deliver on the promise of the zero-emissions hydrogen economy.”
The merger transaction will facilitate a “backdoor” listing of H2P under Toronto Stock Exchange (TSX) policies. H2P is amalgamating with a subsidiary of Loop, a Canadian-listed company and Loop will acquire all of the common shares of H2P, while H2P shareholders will receive common shares of Loop.
Supported by a strategic relationship with Tycrop Manufacturing of Chilliwack, H2P is launching multiple pilot projects in and around the Lower Mainland beginning mid-2024, including the one at the port.
H2P plans to raise approximately $15 million in equity in a brokered private placement to provide growth capital and stability upon closing of the transaction.
The release said there’s a “strong incoming team” with board and operational expertise in industrial equipment integration and sales. Led by CEO Scott Mason of Tycrop, the combined entity’s directors at closing are also to include: Gary Teichrob (TYCROP), Ken Hallat, Greg Bay and Jim Barton.
H2P is developing modular and expandable advanced power systems integrating the technology advantages of the Loop fuel cell.
READ MORE: Shift to hydrogen fuel-cells at port by firms with Chilliwack roots