Bolingbrook, Illinois (ots/PRNewswire) – The Company continues its efforts to raise new capital and introduce market-leading fuel cell technology in North America
Hyzon (NASDAQ: HYZN) (Hyzon or the Company), a U.S.-based manufacturer and global provider of high-performance hydrogen fuel cell systems focused on providing zero-emission power to decarbonize the most demanding industries, today announced that The Company will cease operations in the Netherlands and Australia after considering its options and completing its assessment of the difficult market conditions in Europe and Australia.
Compared to North American efforts to accelerate the transition to hydrogen technology and the adoption of zero-emission fuel cell technology, government support for fuel cell vehicles has declined in Europe and Australia, including the elimination of hydrogen subsidies in many European countries. Hyzon currently intends to maintain the potential to return to the European and Australian markets as a supplier of fuel cell systems to original equipment manufacturers (OEMs).
“I would like to express my deepest gratitude to our dedicated European and Australian teams who have worked tirelessly to advance the transition to hydrogen,” said Parker Meeks, Managing Director of Hyzon. “This has been a complex and difficult decision. Given the challenges brings new technologies to market in an emerging industry, we believe we need to focus our efforts on the North American market and the waste industry and oversee our major fleet testing programs beginning this summer,” Meeks added.
The Company expects to incur costs of approximately $17 million in connection with the planned exit activities, of which approximately $7 million will be paid in cash. The costs include non-cash inventory write-downs of approximately $7 million, employee-related costs of approximately $3 million, and other exit-related costs of approximately $4 million and non-cash impairment charges of approximately $3 million. The Company expects these costs to be incurred in the second and third quarters of 2024 and the corresponding cash payments to be made in the third and fourth quarters of 2024. Additionally, the Company expects to derecognize certain liabilities, which may result in non-cash gains in the third and fourth quarters of 2024. The Company is currently unable to estimate these non-cash gains.
Nasdaq Capital Market Application On January 23, 2024, the Company received a letter (the “Notice”) from the listing officers of The Nasdaq Stock Market LLC (“Nasdaq”) informing the Company that it was discontinuing the Nasdaq Listings. Listing Requirements 5550(a)(2) (the “Bid Price Rule”) does not meet the minimum price requirement for continued listing. The Bid Price Rule requires that listed securities have a minimum price of $1.00 per share and Nasdaq Listing Requirement 5810(c)(3)(A) (the “Compliance Period Rule”) provides that a failure to comply with the Minimum Price Requirement shall occur if the deficiency persists for a period of thirty consecutive business days. The announcement had no immediate impact on the listing of the Company’s common shares, par value $0.0001 per share (the “Common Shares”), which traded on the Nasdaq Global Select Market under the symbol “HYZN.” Under the compliance period rule, the company has 180 calendar days to return to compliance. If at any time prior to the expiration of such 180 day period or until July 22, 2024, the closing price of the common stock is at or above $1.00 per share for at least ten consecutive business days, at the discretion of the staff To extend the period pursuant to Nasdaq Listing Requirement 5810(c)(3)(H), Staff will notify the Company in writing that it has complied with the Bid Price Rule. The company has not yet achieved compliance with the bid price rule. Pursuant to Rule 4450(i) of the Nasdaq Stock Exchange, on July 5, 2024, the Company filed to transfer the listing of its common shares from the Nasdaq Global Select Market to the Nasdaq Capital Market. Provided that it meets all criteria for such transfer, the Company will be granted an additional period of 180 calendar days after listing on the Nasdaq Capital Market to comply with the Bid Rule and to regain compliance if it meets certain criteria and Nasdaq informed of his intention to remedy the defect.
Strategic capital efforts and liquidity management The Company is continuing its previously reported efforts to raise capital through the capital markets and to explore various other strategic alternatives. These alternatives include the sale of all or part of the business, a possible divestiture of the businesses and subsidiaries in Europe and/or Australia/New Zealand, additional cost reductions, liquidity management, a reduction in the workforce and other material corporate transactions. The Company is also evaluating the need to seek bankruptcy protection or other legal action if its financing efforts or other strategic alternatives are unsuccessful.
Despite the decision to cease operations in the Netherlands and Australia, the Company reiterates its commitment – subject to success in raising capital and various other strategic alternatives – to its first market-ready, zero-emission 200 kW hydrogen fuel cell technology for North American FCEV platforms for Class 8 and garbage trucks to be better positioned. Both platforms will be used in extensive testing programs for large vehicle fleets in the United States and Canada starting this summer. In addition, the company continues to optimize its activities in China.
Information about Hyzon Hyzon is a global provider of high-performance hydrogen fuel cell technology focused on providing zero-emission energy to decarbonize demanding industries. With its flexible, high-performance technology for heavy-duty applications, Hyzon is at the center of a new industrial revolution powered by hydrogen, an abundant and clean energy source. Hyzon is focused on deploying its fuel cell technology in heavy-duty vehicles in North America, Europe and Australia/New Zealand, as well as in the power generation and energy storage, mining, construction, rail, shipping and airport sectors of tomorrow. To learn more about how Hyzon is collaborating across the hydrogen value chain to accelerate the transition to clean energy, visit www.hyzonfuelcell.com.
Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, among other things, express or implied forward-looking statements regarding Hyzon’s ability to pursue and complete a strategic transaction, raise additional capital and its objectives and benefits of its cost reduction and liquidity management initiatives and the impact of not achieving these measures. Please note that such statements are not guarantees of future performance and that the Company’s actual results may differ materially from those reflected in the forward-looking statements. All such forward-looking statements are subject to risks and uncertainties, which may change at any time. Factors that could cause the Company’s actual expectations to differ materially from these forward-looking statements include the Company’s ability to improve its capital structure; Hyzon’s liquidity needs to operate its business and implement its strategy and the related use of cash; the ability to raise capital through the issuance of shares, the sale of assets or the incurrence of debt; the possibility that Hyzon may have to file for bankruptcy protection; Hyzon’s ability to fully implement measures and steps that would likely eliminate the existence of significant doubts about its ability to continue as a going concern; our ability to enter into a desired strategic alternative in a timely manner and on acceptable terms; our ability to maintain the listing of our common stock on the Nasdaq Global Select Market; our ability to retain or recruit or make necessary changes to our officers, key employees or directors; retail and credit market conditions; higher cost of capital and borrowing costs; impairments; changes in general economic conditions; and the other factors under the heading “Risk Factors” set forth in the Company’s Annual Report on Form 10-K, supplemented by the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These filings are on our website or under www.sec.gov available. You should not place undue reliance on these forward-looking statements, which are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent developments, events or circumstances, except as required by applicable securities laws.
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