Fusion Fuel Closes on $1.28 Million Senior Convertible Notes and $25 Million Equity Line of Credit
Fusion Fuel Green PLC (HTOO) has secured two financial arrangements: a $1.28 million senior convertible notes private placement and a $25 million equity line of credit. The convertible notes, issued at a 20% original issue discount, will mature in July 2026 with an 8% annual interest rate and include warrants providing 100% equity coverage.
The equity line of credit will allow Fusion Fuel to sell up to $25 million in newly issued Class A ordinary shares at its discretion, subject to certain conditions including SEC registration. CEO John-Paul Backwell stated this capital infusion will strengthen near-term liquidity and support the expansion of their Al Shola Gas business while enabling the launch of their BrightHy solutions platform.
Fusion Fuel Green PLC (HTOO) ha ottenuto due accordi finanziari: un private placement di note convertibili senior da 1,28 milioni di dollari e una linea di credito azionaria da 25 milioni di dollari. Le note convertibili, emesse con uno sconto del 20% sul valore nominale, scadranno a luglio 2026 con un tasso di interesse annuale dell'8% e includono warrant che forniscono una copertura azionaria del 100%.
La linea di credito azionaria permetterà a Fusion Fuel di vendere fino a 25 milioni di dollari in nuove azioni ordinarie di Classe A a sua discrezione, soggetta a determinate condizioni, inclusa la registrazione presso la SEC. Il CEO John-Paul Backwell ha dichiarato che questo apporto di capitale rafforzerà la liquidità a breve termine e supportarà l'espansione della loro attività Al Shola Gas, consentendo al contempo il lancio della loro piattaforma BrightHy solutions.
Fusion Fuel Green PLC (HTOO) ha conseguido dos acuerdos financieros: una colocación privada de notas convertibles senior de 1.28 millones de dólares y una línea de crédito en acciones de 25 millones de dólares. Las notas convertibles, emitidas con un descuento del 20% en la emisión original, vencerán en julio de 2026 con una tasa de interés anual del 8% e incluyen warrants que proporcionan una cobertura del 100% en acciones.
La línea de crédito en acciones permitirá a Fusion Fuel vender hasta 25 millones de dólares en nuevas acciones ordinarias de Clase A a su discreción, sujeto a ciertas condiciones, incluida la inscripción en la SEC. El CEO John-Paul Backwell declaró que esta inyección de capital fortalecerá la liquidez a corto plazo y apoyará la expansión de su negocio Al Shola Gas, al mismo tiempo que permitirá el lanzamiento de su plataforma BrightHy solutions.
Fusion Fuel Green PLC (HTOO)는 두 가지 금융 계약을 체결했습니다: 128만 달러 규모의 선순위 전환사채와 2500만 달러 규모의 주식 신용 한도. 전환사채는 20%의 원발행 할인을 적용받아 발행되며, 2026년 7월에 만기되며 연 8%의 이자율을 포함하고 있습니다. 또한 100%의 지분을 제공하는 워런트도 포함되어 있습니다.
주식 신용 한도를 통해 Fusion Fuel은 특정 조건을 충족하는 경우, 새로 발행된 클래스 A 보통주를 최대 2500만 달러까지 자의적으로 판매할 수 있습니다. CEO John-Paul Backwell는 이번 자본 유입이 단기 유동성을 강화하고 Al Shola Gas 사업의 확장을 지원하며 BrightHy 솔루션 플랫폼의 출시를 가능하게 할 것이라고 밝혔습니다.
Fusion Fuel Green PLC (HTOO) a conclu deux accords financiers : un placement privé de billets convertibles senior de 1,28 million de dollars et une ligne de crédit en actions de 25 millions de dollars. Les billets convertibles, émis avec une décote de 20 % sur le montant nominal, arriveront à maturité en juillet 2026 avec un taux d'intérêt annuel de 8 % et comprennent des bons de souscription offrant une couverture à 100 % en actions.
La ligne de crédit en actions permettra à Fusion Fuel de vendre jusqu'à 25 millions de dollars d'actions ordinaires de classe A nouvellement émises à sa discrétion, sous réserve de certaines conditions, y compris l'enregistrement auprès de la SEC. Le PDG John-Paul Backwell a déclaré que cette injection de capital renforcera la liquidité à court terme et soutiendra l'expansion de leur activité Al Shola Gas tout en permettant le lancement de leur plateforme de solutions BrightHy.
Fusion Fuel Green PLC (HTOO) hat zwei Finanzierungsvereinbarungen gesichert: eine Privatplatzierung von 1,28 Millionen Dollar an nachrangigen wandelbaren Anleihen und eine Eigenkapitalkreditlinie über 25 Millionen Dollar. Die wandelbaren Anleihen, die mit einem 20%igen Emissionsrabatt ausgegeben werden, laufen im Juli 2026 mit einem Jahreszinssatz von 8% aus und beinhalten Warrants, die eine 100%ige Eigenkapitaldeckung bieten.
Die Eigenkapitalkreditlinie ermöglicht es Fusion Fuel, bis zu 25 Millionen Dollar an neu ausgegebenen Stammaktien der Klasse A nach eigenem Ermessen zu verkaufen, vorbehaltlich bestimmter Bedingungen, einschließlich der SEC-Registrierung. CEO John-Paul Backwell erklärte, dass diese Kapitalzufuhr die kurzfristige Liquidität stärken und die Erweiterung des Al Shola Gas-Geschäfts unterstützen wird, während sie gleichzeitig den Start ihrer BrightHy-Lösungsplattform ermöglicht.
- Secured $1.28M in immediate funding through convertible notes
- Obtained access to $25M additional capital through equity line of credit
- Strengthened near-term liquidity position
- Al Shola Gas business reported as profitable
- 20% original issue discount on convertible notes indicates high cost of capital
- 8% interest rate on convertible notes represents significant debt service cost
- Potential dilution from convertible notes, warrants, and equity line of credit
- Funding arrangement suggests possible cash flow challenges
Insights
The
The financing structure suggests a strategic pivot, with capital allocated toward the profitable Al Shola Gas division and the new BrightHy platform. This dual-track approach balances immediate revenue generation with longer-term growth potential. However, the high-cost financing terms and full warrant coverage indicate significant risk premium demanded by investors. The July 2026 maturity provides an 18-month runway, important for executing operational improvements and achieving strategic objectives.
This financing package reflects broader market dynamics in the energy services sector, where companies are increasingly seeking flexible capital structures to navigate the transition to sustainable energy solutions. The deal's structure - combining immediate liquidity through convertible notes with a discretionary equity line - provides operational flexibility while managing dilution timing. The focus on expanding Al Shola Gas services indicates a pragmatic approach to maintaining revenue streams while developing newer initiatives like BrightHy.
The
DUBLIN, Jan. 13, 2025 (GLOBE NEWSWIRE) -- via IBN – Fusion Fuel Green PLC (Nasdaq: HTOO) (“Fusion Fuel” or the “Company”), a leading provider of full-service energy engineering and advisory solutions, announced that it has closed a
The senior convertible notes, issued at a
The equity line of credit agreement will enable Fusion Fuel to sell up to
John-Paul Backwell, Chief Executive Officer of Fusion Fuel, commented: “This infusion of capital marks a crucial first step for Fusion Fuel, strengthening our near-term liquidity and providing the runway needed to advance several key initiatives. In particular, the equity line of credit gives us the flexibility to scale further and expand the offerings of our profitable Al Shola Gas business while laying a strong foundation for launching our BrightHy solutions platform. These investments are critical to positioning Fusion Fuel as a leader in the energy services sector and driving long-term value creation for our stakeholders.”
The proceeds from the senior convertible notes and equity line of credit are expected to strengthen the Company’s balance sheet, provide working capital, and support key strategic and growth initiatives across its core markets.
Additional information regarding the terms of the senior convertible notes, the related warrants, and the equity line of credit can be found in the Company’s reports on Form 6-K furnished to the SEC on January 13, 2025.
About Fusion Fuel Green plc
Fusion Fuel Green PLC (NASDAQ: HTOO) is an emerging leader in the energy services sector, offering a comprehensive suite of energy engineering and advisory solutions through its Al Shola Gas and BrightHy subsidiaries. Al Shola Gas provides full-service industrial gas solutions, including the design, supply, and maintenance of liquefied petroleum gas (LPG) systems, as well as the transport and distribution of LPG to a broad range of customers across commercial, industrial, and residential sectors. BrightHy, the Company’s newly launched hydrogen solutions platform, focuses on delivering innovative engineering and advisory services that enable decarbonization across hard-to-abate industries.
Learn more about Fusion Fuel by visiting our website at https://www.fusion-fuel.eu and following us on LinkedIn.
Forward-Looking Statements
This press release includes “forward-looking statements.” Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target”, “may”, “intend”, “predict”, “should”, “would”, “predict”, “potential”, “seem”, “future”, “outlook” or other similar expressions (or negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Fusion Fuel has based these forward-looking statements largely on its current expectations, including but not limited to the ability of the investment reported on to be consummated as anticipated. Such forward-looking statements are subject to risks and uncertainties (including those set forth in Fusion Fuel’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission) which could cause actual results to differ from the forward-looking statements.
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FAQ
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