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Fusion Fuel Issues Damages Claim Against Hydrogenial S.A. for Failure to Fund $33.5 Million Subscription Agreement; Announces Insolvency of Portuguese Subsidiary
HTOOFusion Fuel Green PLC(HTOO) GlobeNewswire News Room·2024-11-14 21:15

Core Viewpoint - Fusion Fuel Green Plc has filed a damages claim against Hydrogenial S.A. due to their failure to fund a 33.5millionSubscriptionAgreement,whichhasledtosignificantoperationalchallengesforthecompany[1][2][3].Group1:SubscriptionAgreementDetailsTheSubscriptionAgreement,signedonAugust28,2024,involvedHydrogenialcommittingtopurchase43,790,850ClassAordinarysharesandwarrantsforatotalof33.5 million Subscription Agreement, which has led to significant operational challenges for the company [1][2][3]. Group 1: Subscription Agreement Details - The Subscription Agreement, signed on August 28, 2024, involved Hydrogenial committing to purchase 43,790,850 Class A ordinary shares and warrants for a total of 33.5 million [1]. - The closing of the agreement was scheduled for September 30, 2024, but Hydrogenial failed to provide timely funding despite all conditions being met [2]. - A revised closing date of October 25, 2024, was proposed by Hydrogenial, but as of now, Fusion Fuel has not received any proceeds from the investment [2]. Group 2: Consequences of Funding Delay - As a direct result of the funding delay, Fusion Fuel has filed for insolvency for its Portuguese subsidiary, Fusion Fuel Portugal S.A., which was crucial for the company's technology sales and project development [3]. - The company has submitted a claim in Portugal for damages incurred due to Hydrogenial's breach, while asserting that the Investor's obligations under the Subscription Agreement remain in effect [3]. Group 3: Strategic Alternatives - In light of these developments, Fusion Fuel is exploring strategic alternatives to preserve shareholder value, including potential transactions that could enhance its hydrogen business and create significant synergies [4].