Fusion Fuel Demonstrates Strengthened Equity Position

Rhea-AI Summary

Fusion Fuel Green PLC (HTOO) has announced a significant improvement in its equity position, with pro forma stockholders' equity reaching approximately $12.0 million as of January 10, 2025. This enhancement reflects several recent transactions, including the Quality Industrial Corp. acquisition in November 2024 and a January 10, 2025 concurrent private placement of $1.28 million in senior convertible notes, along with entry into a $25 million equity line of credit.

These strategic moves aim to ensure long-term compliance with Nasdaq Listing Rule 5550(b)(1), which mandates a minimum stockholders' equity of $2.5 million for continued listing on The Nasdaq Capital Market. The company's detailed pro forma balance sheet is available through SEC filings and their investor relations website.

Positive

• Stockholders' equity significantly exceeds Nasdaq minimum requirement at $12.0 million
• Secured $25 million equity line of credit
• Successfully raised $1.28 million through convertible notes
• Strategic acquisition of Quality Industrial Corp. completed

Negative

• Need for multiple financing transactions suggests potential cash flow concerns
• Convertible notes may lead to future dilution for existing shareholders

Insights

Financial Analyst

The strengthening of Fusion Fuel's equity position to $12.0 million represents a strategic move to maintain Nasdaq compliance, significantly exceeding the required $2.5 million threshold. Three key financial maneuvers stand out: 1) The Quality Industrial Corp acquisition, 2) A $1.28 million convertible notes placement and 3) A substantial $25 million equity line of credit. This multi-faceted approach not only ensures listing compliance but also provides significant operational flexibility. The convertible notes add immediate capital while the equity line offers a safety net for future funding needs. However, potential dilution risks exist for current shareholders, particularly with the convertible notes and equity line structures. The pro forma equity position, while healthy for compliance purposes, should be viewed in context of the company's relatively modest $12.6 million market cap, suggesting careful management of these financing instruments will be important for maintaining shareholder value.

Legal Expert

The company's proactive approach to Nasdaq compliance demonstrates strong corporate governance and regulatory awareness. Meeting Rule 5550(b)(1) requirements with a substantial buffer ($12.0 million versus the required $2.5 million) suggests a strategic effort to ensure long-term listing stability. The transparent disclosure through Form 6-K filing aligns with SEC reporting obligations and best practices in corporate communication. The structured financing approach, combining convertible notes with an equity line, indicates sophisticated legal planning to maintain listing compliance while creating financial flexibility. However, investors should note that the equity line of credit, while providing potential access to $25 million, typically comes with specific draw-down conditions and regulatory requirements that warrant careful scrutiny of the SEC filings for complete understanding of terms and obligations.

DUBLIN, Jan. 16, 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, today announced that the Company’s pro forma stockholders’ equity as of January 10, 2025, is approximately $12.0 million. This pro forma amount reflects the impact of several recently completed transactions, including the acquisition of Quality Industrial Corp. in November 2024, and, on January 10, 2025, the concurrent private placement of $1.28 million in senior convertible notes and entry into a $25 million equity line of credit.

As a result, the Company has undertaken a number of transactions to achieve and demonstrate long-term compliance with Nasdaq Listing Rule 5550(b)(1), which requires a minimum stockholders’ equity of $2.5 million for continued listing on The Nasdaq Capital Market tier of Nasdaq.

The Company’s pro forma balance sheet as of January 10, 2025 reflecting these transactions was attached as an exhibit to a Report on Form 6-K that was furnished to the Securities and Exchange Commission on January 13, 2025, and is available on the SEC’s website at https://www.sec.gov/ and in the Investor Relations section of the Company’s website at https://fusion-fuel.eu/.

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 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.

Investor Relations Contact

ir@fusion-fuel.eu

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FAQ

What is Fusion Fuel's (HTOO) current pro forma stockholders' equity as of January 2025?

Fusion Fuel's pro forma stockholders' equity as of January 10, 2025, is approximately $12.0 million.

How much is the equity line of credit secured by Fusion Fuel (HTOO) in January 2025?

Fusion Fuel secured a $25 million equity line of credit on January 10, 2025.

What is the minimum stockholders' equity required for Nasdaq Capital Market listing?

According to Nasdaq Listing Rule 5550(b)(1), companies must maintain a minimum stockholders' equity of $2.5 million for continued listing on The Nasdaq Capital Market.

What recent transactions has Fusion Fuel (HTOO) completed to improve its equity position?

Fusion Fuel completed the acquisition of Quality Industrial Corp. in November 2024, raised $1.28 million through senior convertible notes, and secured a $25 million equity line of credit in January 2025.