PowerTap Hydrogen Capital Corp has announced that it will conduct a process to explore strategic avenues to maximize shareholder value as interest in the hydrogen industry grows.
Together with external advisors, the company said it will consider a broad range of options including receiving strategic investments, international joint ventures, strategic mergers and taking its wholly-owned PowerTap Hydrogen Fueling Corp public via a merger with a special purpose acquisition company (SPAC) in the US.
PowerTap has already retained Jefferies LLC as lead financial advisor and capital markets advisor and Canaccord Genuity (TSX:CF, LSE:CF) Corp as financial advisor for its process of exploring accretive and synergistic opportunities.
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PowerTap noted that the hydrogen industry has gained global interest in the past 18 months and its unique, patented onsite hydrogen production technology is well-positioned to play a major role in building out the hydrogen fueling infrastructure which is needed to build the hydrogen highway.
“In light of various inquiries we have received from potential strategic partners globally and several USA listed SPACs over the past few months, we decided it was prudent to retain financial advisors and conduct a formal process to maximize shareholder value,” PowerTap CEO Raghu Kilambi said in a statement.
“Our financial advisors are very knowledgeable in clean energy and hydrogen and are enthusiastic about the potential for hydrogen fueling infrastructure globally,” he added.
The company cautioned that there can assurance that the process will result in a transaction or other strategic change or outcome and it has not set a timetable for the conclusion of its review. However, it said it continues to work towards an uplisting to NASDAQ and will provide updates via press releases.
It also announced that it has amended the mechanics of a fee payment in relation to its sponsorship agreement on the No. 17 Indy Lights entry piloted by Devlin DeFrancesco. As part of the sponsorship fee for 2021, it will issue an additional 2,100,000 common shares at a deemed value of $0.73 per common share.
PowerTap’s patented solution has been developed over 20 years. It is now commercializing its third-generation blue hydrogen product that will focus on the refueling needs of the automotive and long-haul trucking markets that lack hydrogen fueling infrastructure.
There are currently under 100 operational publicly available hydrogen stations in the US with most of the existing stations purchasing industrial hydrogen from industrial manufacturers and shipping hydrogen to individual stations via tanker trucks.
Contact the author at stephen.gunnion@proactiveinvestors.com