Fusion Fuel Files Damages Claim, Targets Strategic Options

Fusion Fuel Takes Legal Action Against Hydrogenial S.A.

Dublin – Fusion Fuel Green Plc, commonly referred to as Fusion Fuel, has recently initiated a damages claim against Hydrogenial S.A. due to the latter's failure to fund a vital $33.5 million Subscription Agreement. This announcement has garnered significant attention in the clean energy sector.

Details of the Subscription Agreement

Under the terms of the Subscription Agreement disclosed in the recent filings, Hydrogenial was committed to purchasing a total of 43,790,850 Class A ordinary shares, in addition to warrants for acquiring more shares. This agreement, initially crafted in good faith on August 28, was set to be fulfilled by September 30, with full payment required at that time. Despite all necessary prerequisites being satisfied, Hydrogenial did not provide the required funding, prompting Fusion Fuel to seek legal remedies.

Insolvency of Portuguese Subsidiary

Due to the adverse effects of the funding delays, Fusion Fuel has been forced to file for insolvency for its subsidiary, Fusion Fuel Portugal S.A. This subsidiary is crucial as it manages the majority of the Company’s technology sales and project development initiatives. Legal counsel in Portugal has been engaged to pursue a damages claim stemming from Hydrogenial's breach, emphasizing that the Investor’s obligations under the Subscription Agreement remain unaffected despite the recent insolvency filing.

Impact on Operations

The funding gap has substantially hindered Fusion Fuel’s operations, leading to the critical decision regarding its subsidiary's insolvency. The Company is now navigating the complex regulatory environment in Portugal while aiming to enlist support for repairing both its operational capabilities and investor confidence.

Strategic Alternatives and Future Directions

In light of the current challenges, Fusion Fuel is actively exploring strategic alternatives that might enhance shareholder value. Management is evaluating various potential transactions that could align with the Company’s hydrogen initiatives and create significant synergies. These considerations are vital as the company looks to reposition itself within the rapidly evolving green energy landscape.

About Fusion Fuel Green plc

Fusion Fuel is establishing itself as a pivotal player in the green hydrogen industry, dedicated to advancing the energy transition with innovative clean hydrogen technologies. The Company's miniaturized Proton Exchange Membrane (PEM) electrolyzer, known as HEVO, supports a unique approach to green hydrogen production, emphasizing adaptability, reliability, and modularity. Fusion Fuel's diverse range of business activities includes the sale of electrolyzer systems, the development of turnkey hydrogen plants, and comprehensive project engineering and advisory services.

Frequently Asked Questions

What led to Fusion Fuel's claim against Hydrogenial S.A.?

Fusion Fuel filed a damages claim after Hydrogenial failed to fulfill a $33.5 million Subscription Agreement meant to fund the acquisition of Class A ordinary shares.

How has this funding delay affected Fusion Fuel?

Due to delayed funding, Fusion Fuel has filed for insolvency for its Portuguese subsidiary, significantly impacting its operational capabilities.

What strategic options is Fusion Fuel considering?

Fusion Fuel is exploring strategic alternatives to preserve shareholder value, which may include potential transactions that align with their hydrogen business.

What is the significance of the HEVO electrolyzer?

The HEVO electrolyzer is a patented technology that allows Fusion Fuel to produce green hydrogen in a modular and reliable manner, enhancing its competitive edge.

How can investors stay informed about Fusion Fuel's progress?

Investors can follow Fusion Fuel's updates on their website and LinkedIn page to keep track of the company's developments in the green hydrogen sector.

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