Loop Energy and H2 Portable Power Announce Merger
Loop Energy and H2 Portable Power have agreed to merge, aiming to create a dominant hydrogen industrial-equipment company. The deal will result in a back-door listing for H2 Portable Power, while also enabling H2 Portable to secure approximately CAD 15 million ($11.1 million) in equity through a private-placement.
Upon completion of the merger, existing H2 Portable shareholders will own approximately 60.5% to 62% of the combined entity's shares, with Loop shareholders holding around 9% to 9.6%. Investors in the concurrent financing will control roughly 28.4% to 30.5% of the new company.
The merging companies anticipate substantial cost and operational efficiencies by reducing the size of Loop's leased real estate portfolio, divesting non-core equipment, and streamlining operating expenses.
Scott Mason, CEO of H2 Portable, will become the Chief Executive Officer of the combined company. Ben Nyland has resigned as President and CEO of Loop, with Paul Cataford assuming the role of interim CEO and Daryl Musselman taking over as interim Chief Financial Officer and Chief Operating Officer of Loop.
H2 Portable, a developer of hydrogen-enabled industrial equipment to support customers in their decarbonization strategies, plans to raise growth capital through a brokered private placement of subscription receipts. Each subscription receipt will entitle the holder to one share of H2 Portable.
The transaction is expected to be completed in April.
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