Hydrogen Utopia International PLC (LSE:HUI, OTCQB:HUIPF) has today revealed the name of the counterparty to the company’s proposed reverse takeover as Helmond Holding Group Corp (HHG).
HHG is “a substantial and profitable international bio-energy company”, the company said in a statement.
“The directors expect that the development of HUI's waste plastic to hydrogen technology combined with HHG's established biofuels production business will lead to the re-admitted company becoming a dominant player not only in the biofuels but also in the hydrogen market,” HUI added.
A further statement, released by the company on Tuesday afternoon, added that Helmond is in the process of changing its name to Essential Energy Holding Group Corp whilst providing a link to a website which gives information about a business in Argentina that operates bio-diesel, glycerin and bio-ethanol plants.
Hydrogen Utopia chief executive Aleksandra Binkowska meanwhile spoke to Proactive in the studio today, to give investors insights into the proposed deal.
Yesterday, HUI announced a reverse takeover deal that could see the business transformed.
It told investors it had signed heads of terms regarding the potential acquisition, by way of a reverse takeover, of a substantial and profitable international bio-energy business.
HHG, which yesterday was an unnamed reverse takeover target, is involved in the production and business of biofuels and its bi-products, with revenue over €365 million.
The deal is expected to be valued at around £500 million, HUI said yesterday, subject to due diligence and an independent valuation, paid entirely in shares.
New HUI shares, used in the transaction, are expected to be valued at 9p each – with existing HUI shareholders to receive a cash distribution of 3p per share for each share they hold.
A further payout will be due to existing shareholders in the future, depending upon project milestone criteria, with holders due an extra 2 shares for every 1 share they currently hold if the HUI tech becomes ‘shovel ready’ within three years of the merger.
As well as its own bio-fuels business, the counterparty to the transaction is described as having land in Europe with substantially all permits and authorisations required for the rollout of HUI’s waste plastic to hydrogen facility.
The deal envisages that land being provided to HUI will be made available to the company, along with funds for HUI to prove the concept of a HUI Facility at a commercial scale.
At the same time, Helmond is also described as having a number of operational plants in different jurisdictions, providing an opportunity to enlarge HUI's current international project pipeline.
HUI described it as “a strong strategic fit in line with HUI's objectives”.
"I have explored numerous potential opportunities for the rollout of a waste plastic to hydrogen facility over the last 3 years. I am delighted to announce that my search has now been successful,” chief executive Aleksandra Binkowska said in a statement.
“HUI is to become part of a larger, international bio-fuels specialist, whose mission is aligned with HUI's.
“These heads of terms mark the beginning of a journey to build the first plastic waste to hydrogen facility in the world and will enable HUI to deliver on its promise to shareholders."